Name is one of the most important things to decide while starting a new business and perhaps the most difficult thing to decide. Name of the company has tremendous impact on customers and investors of the Company. Choosing right name speaks volumes about your business. Naming a Private Limited Company or Limited Liability Partnership (LLP) is more difficult than just naming. Naming a Private Limited Company in India is governed by Ministry of Corporate Affairs, same is the case for naming Limited Liability Partnership in India.
Ministry of Corporate Affairs (MCA) has laid some regulations for naming a Private Limited Company and LLP. In this article we are discussing different rules and guidelines of MCA.
Name should not be undesirable, prohibited or identical
As per Companies Act, 2013 the applied name should not be undesirable. A name is undesirable when it is identical or too nearly resemble with the name of existing Private Limited Company, LLP or trademark. A prohibited name is the name which includes
- any word or words which are offensive to any section or the people,
- is exact English or Hindi translation or existing name,
- includes word “co-operative” or “sahakari” in the name,
- words such as Federal, National, Union, Central, Republic, President, Rashtrapati etc.,
- word “British India”
- implies connection with embassy or consulate of foreign government,
- implies connection with local authorities such as Zila Panchayat, Municipal etc,
- words like Bank, Insurance, Mutual Fund, Venture Capital or such other words without approval of regulatory authority,
- words like Chartered Accountant, Company Secretary, Advocates etc.
Words which require approval from regulatory authority
Names which includes words like Bank, Mutual Fund, Venture Capital, Insurance, Asset Management etc are not allowed unless approval is taken from regulatory authority like RBI, IRDA etc. For names which indicates patronage of Central Government, State Government, Local Authorities, an approval from such authority has to be taken.
To know more about Private Limited Company name approval, read our articles