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Applying for a company name may seem straightforward, but many applicants face rejection due to simple avoidable mistakes. Whether you're starting a private limited company, LLP, or public company, it's essential to understand the Guideline for Name Approval laid down by the Ministry of Corporate Affairs (MCA). This blog highlights the most frequent errors applicants make—and how to avoid them to ensure a faster, smoother approval process.
Why Company Name Approval Gets Rejected
Even a small naming error can delay incorporation and increase costs. MCA carefully reviews each proposed name for legal, linguistic, and trademark compliance. Repeated rejections can cause frustration and stall your startup launch or expansion.
Common Mistakes to Avoid During Name Approval
1. Proposing an Already Registered Name
One of the most frequent mistakes is submitting a name that already exists or is too similar to another registered business or trademark. Always do a proper search on the MCA Name Search and IP India Trademark portals.
2. Using Generic or Vague Words
Names like “Global Enterprises” or “Tech Solutions” are too broad and likely to be rejected. Your name should describe your niche or activity and include distinct wording.
3. Incorrect Use of Suffixes
Private companies must end with “Private Limited,” and public companies with “Limited.” Omitting or misusing these suffixes leads to automatic rejection.
4. Including Prohibited Words Without Approval
Words like “Bank,” “Stock Exchange,” “Insurance,” or “National” need additional approvals from regulatory authorities. Including them without permission results in rejection.
5. Ignoring the SPICe+ and RUN Format Rules
Many applicants submit names with special characters, abbreviations, or improper formatting not accepted by the RUN or SPICe+ systems.
Real Example: A Costly Oversight
A Mumbai-based startup filed “SkyPay Technologies Pvt Ltd” via RUN. It was rejected due to an existing NBFC with a similar name. After losing the fee, they engaged professionals who proposed “SkyNova Digital Solutions Pvt Ltd” instead. The name was approved within two days via SPICe+.
How to Ensure Approval the First Time
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Do a comprehensive search on both MCA and trademark portals
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Use specific terms that reflect your industry and services
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Prepare 2–3 alternatives in case your preferred name is rejected
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Avoid restricted terms unless you're ready with regulatory approvals
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Consult a legal or compliance expert to review your application
FAQs
Q1: Can I reuse a name that is inactive or struck off?
No. Even if a company is inactive or dissolved, its name is protected for a period and cannot be reused immediately.
Q2: How many chances do I get in the RUN form?
You get one resubmission with each RUN application. If rejected again, you must pay and reapply.
Q3: Should I trademark the name before or after MCA approval?
You can do either, but it’s smart to check trademark availability before filing to avoid legal disputes.
Conclusion
Avoiding common mistakes can save time, money, and stress when applying for a company name. By following the Guideline for Name Approval, you can streamline the registration process and ensure your company name is accepted on the first attempt.
Need professional help with name search, approval, and registration? Connect with Ruchi Anand and Associates for end-to-end business setup support.
