Why Are MCA Naming Guidelines Important?
MCA naming guidelines are in place to avoid confusion, protect the identity of existing businesses, and prevent trademark infringements. These rules ensure that:
- The business name is legally unique and distinguishable from others.
- It reflects the nature of the company’s operations, adding credibility.
- Customers can identify and trust the brand without confusion.
- Legal disputes and objections are avoided, saving time and cost.
What Are the Legal Rules for Naming a Private Limited Company?
The name of a Private Limited Company must follow the rules under Section 4 of the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. These legal provisions ensure that names are meaningful, non-deceptive, and compliant with corporate norms. Here’s an elaboration of the core rules:
- No identical or closely resembling names: Your proposed name must be completely different from existing registered companies or LLPs listed on the MCA portal. Even slight changes in spelling, punctuation, or spacing will not qualify.
- Should not violate a registered trademark: If your proposed company name matches an existing trademark, it may be rejected unless you have obtained prior written permission or NOC from the trademark owner. It is advisable to run a check on the IP India Trademark Search Portal.
- Must include “Private Limited”: Every private company registered under the Companies Act must include the suffix “Private Limited” at the end of its name, signifying its corporate structure.
- Avoid offensive, misleading, or illegal terms: Names that are obscene, offensive, or promote illegal activities are strictly prohibited. For example, names promoting hate speech, drug use, or indecent words will be automatically rejected.
- Government-sounding names are restricted: Words like “National”, “Republic”, “Union”, “Government”, “Ministry”, or anything implying a connection with central or state authorities require prior approval from the respective departments.
- Generic words are not acceptable unless combined: Terms such as “business,” “enterprise,” “solutions,” or “consulting” are considered too vague. You must pair these with unique or invented terms to distinguish your company from others. For instance, “GreenRoot Solutions Private Limited” would be acceptable, but “Solutions Private Limited” would not.
Following these rules not only ensures compliance but also builds a credible and distinctive identity for your brand.
You can read the complete naming guidelines on the MCA official website (Companies (Incorporation) Rules, 2014 – MCA (PDF)).
What Are the Consequences of Not Following MCA Naming Rules?
Failure to follow the MCA’s naming guidelines can result in:
- Application Rejection: The name reservation request may get rejected immediately.
- Wasted Time and Money: Government fees are non-refundable.
- Delays in Incorporation: You may have to reapply multiple times.
- Legal Objections: Trademark owners or existing companies may raise objections.
- Branding Issues: Using a non-compliant or confusing name weakens brand value.
What Is the Process to Reserve a Name Under MCA?
Reserving a name is the first official step before incorporating a Private Limited Company. The MCA allows two methods for name reservation: SPICe+ Part A (used for new company incorporation) and RUN (Reserve Unique Name) (used for name change of an existing company).
Here’s a step-by-step breakdown of the name reservation process:
- Step 1: Brainstorm 1–2 Unique Company Names
Think of 1–2 unique and relevant names for your company. The name should:- Reflect your business activity
- Be easy to spell and pronounce
- Not resemble any existing company or trademark
Tip: Avoid generic terms and overly common words like “solutions”, “services”, “enterprise” unless paired with something truly distinctive.
- Step 2: Conduct a Name Search on MCA Portal
Before applying, check if your preferred names are already taken.- Visit: MCA Name Search Tool
Also visit IPIndia Trademark Search to ensure the name doesn’t infringe a registered trademark.
This step helps avoid rejections and saves time. - Step 3: Choose the Right Application Mode
Depending on the situation, choose between:Application Type Use Case Platform SPICe+ Part A For new company incorporation MCA SPICe+ Form RUN (Reserve Unique Name) For name change of existing company MCA RUN Service SPICe+ (Simplified Proforma for Incorporating Company Electronically) is part of the full company incorporation process.
RUN is only for name changes or LLPs, and not used for new company incorporation anymore. - Step 4: File Name Reservation Application
Once you’ve finalized the name and chosen the correct route:If using SPICe+ Part A:- Log in to MCA Portal
- Navigate to ‘MCA Services’ → ‘SPICe+’
- Select Part A and fill in:
- Type of company (e.g., Private Limited)
- Main division of industrial activity
- Two proposed names in order of preference
- Business object or nature of the company
- Upload required attachments (if needed, such as NOC for trademark)
- Submit and pay a government fee of ₹1,000
If using RUN (for name change only):
- Login to MCA portal
- Go to ‘MCA Services’ > ‘RUN (Reserve Unique Name)’
- Enter the CIN (for existing company), then fill in the new proposed name
- Provide supporting documents if the name contains trademark or restricted words
- Pay the ₹1,000 fee and submit
- Step 5: Review and Response from MCA
Once submitted:- MCA examines the name as per Section 4 of the Companies Act, 2013
- If the name is available and complies with guidelines, it is approved
- If objections arise, MCA may mark it for resubmission, where you must respond within 15 days
- Step 6: Validity of Name Approval
Once approved, the name is reserved for 20 days- The company must complete incorporation within this period using SPICe+ Part B
- In some cases, MCA may grant 60-day validity (for names approved under reservation for LLPs or specific company types)
Additional Notes:
- If MCA rejects your name, the fee is not refunded
- You can apply again with modified names
- Avoid using abbreviations, government-sounding words, or international names without justification or approval
How EbizFiling Can Help You with MCA Name Approval
EbizFiling helps businesses streamline their name approval process by:
- Conducting thorough name availability checks with MCA and Trademark databases
- Advising on unique and brand-safe names as per business activity
- Filing the SPICe+ Part A application or RUN form on your behalf
- Handling MCA resubmissions and clarifications if required
- Ensuring timely approval by avoiding common naming mistakes
With expert guidance, your company’s name can be approved without delays.
Conclusion
Understanding and following MCA naming guidelines is essential for starting a Private Limited Company in India. A compliant and unique name not only ensures faster approval but also builds a strong business identity. By using the SPICe+ or RUN services correctly and taking professional support from experts like EbizFiling, you can avoid legal risks and get your company off to the right start.
Suggested Read :
Company Name Availability for Startups
Changing Company Name Compliances
Words restricted by MCA for Company Name
List of MCA Forms for Company Filing
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