MCA Naming Guidelines for Private Limited Company / OPC / LLP
Name your Private Limited Company / OPC / LLP right with MCA Naming Guidelines
In the process of new company incorporation, the first and significant step is to select a name that is unique and which will give recognition to the company. A unique name of company must be reserved with Ministry of Corporate Affairs (MCA). Rule 8 of Companies Incorporation Rules 2014 provides name approval/availability guidelines as per Companies Act 2013 while selecting the names for companies. In this article we have discussed all about “MCA naming guidelines”.
Here is a detailed analysis of the points to be considered while selecting a name in the process of company formation.
Table of Content
MCA naming guidelines for Private Limited Company / OPC / LLP (How to register / reserve a company name?)
The name of a company should be:
- Contain a noun and an activity word that reflects its objectives.
- Be in line with Company Name Guidelines issued by Ministry of Corporate Affairs.
What kind of Company Name should be avoided?
The Company Name should not be:
- Be same, similar, identical or resembling to the name of an existing Company or LLP registered. Phonetically similar names are also to be avoided.
- Be similar to a registered trade mark or a trade mark for which an application has already been filed.
- The name chosen should not constitute an offense under any law and should not be undesirable in the opinion of the Central Government.
- The company name should not have any word or expression which is likely to give the impression that the company is in any way connected to the government central or state or any other local authority when it is actually not unless the approval from the respective government authority has been attained.
- If a company’s name indicates any activities relating to financing, leasing, chit-fund, investment, securities etc., though the company’s business activity is not related to any of such activities than such names shall not be allowed.
- Any descriptive name, wherein the name contains any commonly used words that describe any business activity.
Things you should keep in mind for Company Name Reservation
The application for the company name reservation shall be applied in Part A of SPICe + form. Once the MCA approves the name, the MCA will reserve the name for 20 days and in those 20 days the applicant needs to submit the remaining documents and complete the Company Incorporation process.
The applicant must file the form for incorporation within such period otherwise the name will expire and the new name application will have to be filed with an additional fee.
Extension of reservation of company name
In notification dated 24th December, 2020, the MCA has notified that now the MCA will provide extension of reservation of name in certain cases. Under the rule Registrar shall extend the period of a name reserved under rule 9 up to 60 days on Payment of Fees. The rules for the extension of the reservation of name in certain case have been specified as under:
Upon payment of fees provided below through the web service available at www.mca.gov.in, the Registrar shall extend the period of a name reserved under rule 9 by using web service SPICe+.
Matters to be disregarded while comparing the names as per the MCA name availability guidelines (MCA naming guidelines)
1. The words like Private, Pvt, Pvt., (P), OPC Pvt. Ltd., IFSC Limited, IFSC Pvt. Limited, Producer Limited, Limited, Unlimited, Ltd, Ltd., LLP, Limited Liability Partnership, company, and company, & co, & co., co., co, corporation, corp, corpn, corp, group.
For e.g. Ebizfiling India Private Limited and Ebizfiling India pvt. ltd are one and the same.
2. It should be disregarded whether a word is in the plural or singular number in one or both names.
For e.g Organic Product Ltd is similar to Organics Product Ltd or Organic Products Ltd.
3. The type and case of letters, spacing between letters, punctuation marks and special characters used in one or both names shall be disregarded.
For e.g. ABC Ltd. is the same as A.B.C. Ltd. and A B C Ltd.
4. The use of different tenses in the names shall also be disregarded.
For e.g. Bright solutions and Brighting solutions.
5. Use of different phonetic spellings including use of misspelled words of an expression shall be disregarded.
For e.g. Cue math Pvt Ltd, Q math Private Limited, Que math Pvt Ltd all are same.
6. Use of host name such as `www’ or a domain extension such as ‘net’, `org’, ‘dot’ or ‘corn’ in one or both names.
For e.g. Shehmaroo Ltd. is same as Shehmaroo.com Ltd.
7. The order of words in the names shall be disregarded.
For e.g. Kotak Builders and Contractors Ltd. is same as Kotak Contractors and Builders Ltd but Kotak Builders and Contractors Limited is not the same as Great Kotak Builders and ‘Contractors Limited.
8. Use of the definite or indefinite article in one or both names.
For e.g. Dreams Tours Ltd. is the same as The Dreams Tours Ltd. and A dream Tours Ltd. but Dream Industries Limited is not the same as Sapna Industries Limited.
9. A slight variation in the spelling of the two names including a grammatical variation thereof.
For e.g. Color Technologies Ltd. is same as Colour Technologies Ltd. Disc Solutions Ltd. is same as Disk Solutions Ltd. but it is not same as Disco Solutions Ltd.
10. Complete translation or transliteration and not part thereof of and part thereof of an existing name, in Hindi or in English.
For e.g. National Electricity Corporation Ltd. is same as Rashtriya Vidyut Nigam Ltd.
Hike Construction Ltd. is not the same as Hike Nirman Ltd.
11. Addition of the name of a place to an existing name, which does not contain the name of any place.
For e.g. If Salvage Technologies Ltd. is an existing name, it is same as Salvage Technologies Delhi Ltd and Salvage Delhi Technologies Ltd. However, Retro Pharmaceuticals Rarichi Ltd. is not the same as Retro Pharmaceuticals Chennai Ltd.
12. Addition, deletion, or modification of numerals or expressions denoting numerals in an existing name, unless the numeral represents any brand.
For e.g. Thunder Services Ltd is same as Thunder11 Services Ltd and OneThunder Services Ltd but One 11 Power Equipment Ltd is not the same as. One Power Equipment Ltd, if One 11 represents a brand.
Word or expression which can be used only after obtaining previous approval of the Central Government
According to MCA name availability guidelines, 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:
- Small Scale Industries;
- Khadi and Village Industries Corporation;
- Financial Corporation and the like;
- Development Authority;
- Prime Minister or Chief Minister;
- Forest corporation;
- Development Scheme;
- Statute or Statutory;
- Court or Judiciary;
- 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
In cases where a company gets registered with a name in violation of the above broad principles, the ROC may insist on a change of name or can strike down the company and impose a penalty of up to Rs. 1 Lac. Hence, selecting a name for the company is a crucial task as it not only has to be the unique but also shall comply with the MCA name availability guidelines (MCA naming guidelines). It is always advisable that you take the help of Professional while selecting a suitable name for your company which does not break any law.
Suggested Read: How to register a Company Name in India
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