After getting the DIN of directors, the
next steep of the formation of the company is the reservation of name.
Once you reserve the name of the company then you can go ahead for
formation of the company. Applicant should follow the name guidelines
properly to get the name reservation in first attempt.
Name guidelines
Following
are the name guidelines for reservation of the name of the company
1. The name should not identical or
similar to the name of existing company
While determine the whether the
proposed name is identical with another; difference on account of following
should be ignored.
a.
words,
Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership
b.
words
appearing at the end of the names – company, and company, co., co, corporation,
corp, corpn, corp
c.
plural
version of any of the words appearing in the name;
d.
type
and case of letters, spacing between letters and punctuation marks;
e.
joining
words together or separating the words does not make a name distinguishable
from a name that uses the similar, separated or joined words;
f.
use
of a different tense or number of the same word does not distinguish one name
from another;
g.
Using
different phonetic spellings or spelling variations will not be considered as
distinguishing one name from another. Illustration (For example, P.Q.
Industries limited is existing then P and Q Industries or Pee Que Industries or
P n Q Industries or P & Q Industries will not be allowed. Similarly if a
name contains numeric character like 3, resemblance shall be checked with ‘Three’
also ;)
h.
misspelled
words, whether intentionally misspelled or not, do not conflict with the
similar, properly spelled words;
i.
the
addition of an internet related designation, such as .com, .net, .edu, .gov,
.org, .in does not make a name distinguishable from another, even where (.) is
written as ‘dot’;
j.
The
addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai,
The, etc. does not make a name distinguishable from an existing name.
Similarly, if it is different from the name of the existing company only to the
extent of adding the name of the place, the same shall not be allowed; Such
names may be allowed only if no objection from the existing company by way of
Board resolution is submitted;
k.
different
combination of the same words does not make a name distinguishable from an
existing name, e.g., if there is a company in existence by the name of
“Builders and Contractors Limited”, the name “Contractors and Builders Limited”
will not be allowed unless it is change of name of existing company;
l.
if
the proposed name is the Hindi or English translation or transliteration of the
name of an existing company or limited liability partnership in English or
Hindi, as the case may be.
2. Proposed name will name constitute an
offence under any law or undesirable under any law.
3. Proposed name should not contain any
word expression which is likely to give the impression that the company is in
any way connected with, or having the patronage of, the Central Government, any
State Government, or any local authority, corporation or body constituted by
the Central Government or any State Government under any law for the time being
in force unless approval of central government is obtained.
4. The name shall be considered undesirable, if-
a.
it
attracts the provisions of section 3 of the Emblems and Names (Prevention and
Improper Use) Act, 1950 (12 of 1950);
b.
it
includes the name of a registered trade mark or a trade mark which is subject
of an application for registration, unless the consent of the owner or
applicant for registration, of the trade mark, as the case may be, has been
obtained and produced by the promoters;
c.
it
includes any word or words which are offensive to any section of the people;
d.
the
proposed name is identical with or too nearly resembles the name of a limited
liability partnership;
e.
it
is not in consonance with the principal objects of the company as set out in
the memorandum of association:
Provided
that every name need not be necessarily indicative of the objects of the
company, but when there is some indication of objects in the name, then it
shall be in conformity with the objects mentioned in the memorandum;
f.
the
Company’s main business is financing, leasing, chit fund, investments,
securities or combination thereof, such name shall not be allowed unless the
name is indicative of such related financial activities, viz., Chit Fund/ Investment/
Loan, etc.;
g.
it
resembles closely the popular or abbreviated description of an existing company
or limited liability partnership;
h.
the
proposed name is identical with or too nearly resembles the name of a company
or limited liability partnership incorporated outside India and reserved by
such company or limited liability partnership with the Registrar:
Provided that if a foreign company is
incorporating its subsidiary company in India, then the original name of the
holding company as it is may be allowed with the addition of word India or name
of any Indian state or city, if otherwise available;
i.
any
part of the proposed name includes the words indicative of a separate type of
business constitution or legal person or any connotation thereof e.g. co-operative,
sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC,
GmbH, SA, PTE, Sdn, AG etc.;
Explanation: Name
including phrase ‘Electoral Trust’ may be allowed for Registration of
companies to be formed under section 8 of the Act, in accordance with the
Electoral Trusts Scheme 2013 notified by the Central Board of Direct Taxes
(CBDT):
Provided that name
application is accompanied with an affidavit to the effect that the name to be
obtained shall be only for the purpose of registration of companies under
Electoral Trust Scheme as notified by the CBDT.
j.
the
proposed name contains the words ‘British India’;
k.
the
proposed name implies association or connection with embassy or consulate or a
foreign government;
l.
the
proposed name includes or implies association or connection with or patronage
of a national hero or any person held in high esteem or important personages
who occupied or are occupying important positions in Government;
m.
The
proposed name is vague or an abbreviated name such as ‘ABC limited’ or ‘23K
limited’ or ‘DJMO’ Ltd: abbreviated name based on the name of the promoters
will not be allowed. For example: - BMCD Limited representing first alphabet of
the name of the promoter like Bharat, Mahesh, Chandan and David. Provided that
existing company may use its abbreviated name as part of the name for formation
of a new company as subsidiary or joint venture or associate company but such
joint venture or associated company shall not have an abbreviated name only
e.g. Delhi Paper Mills Limited can get a joint venture or associated company as
DPM Papers Limited and not as DPM Limited. However the companies well known in
their respective field by abbreviated names are allowed to change their names
to abbreviation of their existing name after following the requirements of the
Act;
n.
The
proposed name is identical to the name of a company dissolved as a result of
liquidation proceeding and a period of two years have not elapsed from the date
of such dissolution. Further, if the proposed name is identical with the name
of a company which is struck off in pursuance of action under section 248 of
the Act, then the same shall not be allowed before the expiry of twenty years
from the publication in the Official Gazette being so struck off;
o.
it
is identical with or too nearly resembles the name of a limited liability
partnership in liquidation or the name of a limited liability partnership which
is struck off up to a period of five years;
p.
the
proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’,
‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a
declaration is submitted by the applicant that the requirements mandated by the
respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with
by the applicant
q.
The
proposed name includes the word “State”, the same shall be allowed only in case
the company is a government company.
r.
the
proposed name is containing only the name of a continent, country, state, city
such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited
s.
the
name is only a general one, like Cotton Textile Mills Ltd. or Silk
Manufacturing Ltd., and not Lakshmi Silk Manufacturing Co. Ltd;
t.
it
is intended or likely to produce a misleading impression regarding the scope or
scale of its activities which would be beyond the resources at its disposal
u.
the
proposed name includes name of any foreign country or any city in a foreign
country, the same shall be allowed if the applicant produces any proof of
significance of business relations with such foreign country like MOU with a
company of such country: Provided further the name combining the name of a
foreign country with the use of India like India Japan or Japan India shall be
allowed if, there is a government to government participation or patronage. No
company shall be incorporated using the name of an enemy country. (Enemy
country means so declared by the Central Government from time to time).
5.
Change in name if object clause is
change
If any company has changed its activities
which are not reflected in its name, it shall change its name in line with its
activities within a period of six months from the change of activities after
complying with all the provisions as applicable to change of name.
6. In case the key word used in the name
proposed is the name of a person other than the name(s) of the promoters or
their close blood relatives, No objection from such other (s) shall be attached
with the application for name. In case the name includes the name of relatives,
the proof of relation shall be attached. It shall be mandatory to furnish the
significance and proof thereof for use of coined words made out of the name of
the promoters or their relatives. (e.g. If proposed name is on the name of
child of director, he can attach the birth certificate of the child)
7. The applicant shall declare in
affirmative or negative ( to affirm or deny ) whether they are using or have
been using in the last 5 years , the name applied for incorporation of company
or LLP in any other business constitution like Sole proprietor or Partnership
or any other incorporated or unincorporated entity and if, yes details thereof
and NOC from other partners and associates for use of such name by the proposed
Company or LLP as the case may be and also a declaration as to whether such
other business shall be taken over by the proposed company or LLP or not.
8.
Words not allowed to use
The following words and combinations
thereof shall not be used in the name of a company in English or any of the
languages depicting the same meaning unless the previous approval of the
Central Government has been obtained for the use of any such word or
expression: (a) Board; (b) Commission; (c) Authority; (d) Undertaking; (e)
National; (f) Union; (g) Central; (h) Federal; (i) Republic; (j) President; (k)
Rashtrapati; (l) Small Scale Industries; (m) Khadi and Village Industries
Corporation; (n) Financial, forest, Corporation and the like; (o) Municipal; (p)
Panchayat; (q) Development Authority; (r) Prime Minister or Chief Minister; (s)
Minister; (t) Nation; (u) Forest corporation; (v) Development Scheme; (w)
Statute or Statutory; (x) Court or Judiciary; (y) Governor; (z) the use of word
Scheme with the name of Government (s) , State , India, Bharat or any
government authority or in any manner resembling with the schemes launched by
Central, state or local Governments and authorities; and (za) Bureau
9. For the Companies under Section 8 of
the Act, the name shall include the words foundation, Forum, Association,
Federation, Chambers, Confederation, council, Electoral trust and the like etc.
Every company incorporated as a “Nidhi” shall have the last word ‘Nidhi
Limited’ as part of its name.
10. The names released on change of name
by any company shall remain in data base and shall not be allowed to be taken
by any other company including the group company of the company who has changed
the name for a period of three years from the date of change subject to
specific direction from the competent authority in the course of compromise,
arrangement and amalgamation.
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