Availability And Reservation Of Company Name

Written by KnowYourGST Team under GST

Name of the company shall not be :

  1. identical with or resemble too nearly to the name of an existing company registered under this Act or any previous company law; or
  2. such that its use by the company -
    1. will constitute an offense under any law for the time being in force; or
    2. is undesirable in the opinion of the Central Government.

So, before applying for incorporation or conversion, applicant should make sure that name is unique and they do not contravene any rules and regulations.

Below mentioned steps for checking name availability and reservation are to be followed in following cases -

  1. Incorporation of Company
  2. If existing company desires to change its name
  3. If existing Partnership Firm, Limited Liability Partnership, One Person Company or any other type of entity desires to convert to Private Limited Company.
  4. If Foreign Company or Foreign LLP desires to reserve the name by which it is carrying on its business in home country.

Checking whether proposed name is available or not

To check whether proposed company name is available or not, visit www.mca.gov.in

Hover over MCA Services in menu, you will see mega menu displayed. Under Company services, click on 'Check Company Name'

Name availability - 1

In the next screen, enter proposed name, to check whether it is available or not. You can enter up to 6 names at a time. Initially only one field will be displayed, to add more fields click on ‘Add more names'

Name availability - 2

If the name entered is available, then pop up window will be displayed on the screen, telling that ‘Entered Company/LPP name does not exists’

Name availability - 3

If there is already a Company or LLP registered with the same name, then name of that company or LLP will be displayed.

Name availability - 4

Points that are to be considered while applying for name

In determining whether a proposed name is identical with another, the differences on account of the following shall be disregarded -

  1. words, Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership;
  2. words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.;
  3. plural version of any of the words appearing in the name;
  4. type and case of letters, spacing between letters and punctuation marks;
  5. joining words together or separating the words does not make a name distinguishable from a name that uses the similar, separated or joined words;
  6. use of a different tense or number of the same word does not distinguish one name from another;
  7. 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;)
  8. misspelled words, whether intentionally misspelled or not, do not conflict with the similar, properly spelled words;
  9. 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’;
  10. 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;
  11. 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;
  12. 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.

The name shall be considered undesirable, if-

  1. it attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950);
  2. 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;
  3. it includes any word or words which are offensive to any section of the people;
  4. the proposed name is identical with or too nearly resembles the name of a limited liability partnership;
  5. 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;
  6. 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.;
  7. it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;
  8. 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;
  9. 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.
  10. the proposed name contains the words ‘British India’;
  11. the proposed name implies association or connection with embassy or consulate or a foreign government;
  12. 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;
  13. 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;
  14. 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;
  15. 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;
  16. 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;
  17. the proposed name includes the word “State”, the same shall be allowed only in case the company is a government company.
  18. the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited.
  19. the name is only a general one, like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd., and not Lakshmi Silk Manufacturing Co. Ltd;
  20. 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.
  21. 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).

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.

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 .

For the purposes of clause (b) of sub-section (3) of section 4, 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:

  • Board;
  • Commission;
  • Authority;
  • Undertaking;
  • National;
  • Union;
  • Central;
  • Federal;
  • Republic;
  • President;
  • Rashtrapati;
  • Small Scale Industries;
  • Khadi and Village Industries Corporation;
  • Financial, forest, Corporation and the like;
  • Municipal;
  • Panchayat;
  • Development Authority;
  • Prime Minister or Chief Minister;
  • Minister;
  • Nation;
  • Forest Corporation;
  • Development Scheme;
  • Statute or Statutory;
  • Court or Judiciary;
  • Governor;
  • 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
  • Bureau

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.

Private Limited companies shall have the last word "Private Limited" as part of its name, and Public Company as 'Public Limited'

When the name is available and it satisfies all the requirements, then application shall be made to Registrar for reservation.

Reservation of name

An application for reservation of name shall be made through the web service available at www.mca.gov.in by using RUN (Reserve Unique Name) along with fee as provided in the Companies (Registration offices and fees) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre.

The proposed name applied should not be undesirable as per the relevant provisions of the Act and rules dealt with in this matter.

How to apply to registrar for reservation

Visit www.mca.gov.in

Hover over MCA Services, under Company services, click on ‘RUN (Reserve Unique Name) You will be asked to log in. If you are not registered, register yourself on MCA by clicking on ‘register’ in top menu.

Name Reservation - 1

In the next screen ‘RUN’ application will be displayed. Fill the application.

Name reservation - 2

  1. Entity Type : Select the appropriate ‘Entity Type’ in case name is being reserved for incorporating a new company.
    The following suffixes shall be allowed/ not allowed based on the type of entity selected:
    Entity Type Suffixed Allowed
    Producer Company Producer company limited
    Unlimited Company Unlimited
    Private (OPC) (OPC) Private Limited
    IFSC Company (IFSC) Limited/ (IFSC) Private Limited/ IFSC Limited /IFSC Private Limited
    Section 8 company Other than ‘Limited/ Private Limited/ (OPC) Private Limited’
    Nidhi Company Nidhi Limited
    New Company (Others) Limited/ Private Limited
    Part I Section 8 Company Other than ‘Limited/ Private Limited/ (OPC) Private Limited’
    Part I LLP to Company Limited/ Private Limited
    Part I Firm to Company Limited/ Private Limited/Unlimited
    Part I Others N/A
  2. CIN : Enter the CIN of the company in case name is being reserved for change of name of an existing company.
  3. LLPIN : Enter LLPIN only if you are reserving the name to convert LLP into company.
  4. Proposed Name : Enter the proposed name. In case of conversion of LLP into company, the proposed name shall be same as existing name of LLP except the change in suffix ‘LLP/ Limited Liability Partnership’ used in the name.
    Suffix the name as shown in table above.
  5. Auto Check : Click on the ‘Auto check’ button after entering the proposed name. Ensure that any change in the proposed name shall also be validated by clicking the Auto check button.
  6. Comments : Ensure that the objects of the proposed company and/or any other relevant comments are entered here.
  7. Attachment : Attach the relevant document supporting the proposed name.
    Please note that only one file is allowed to be uploaded as an attachment and the size of the file should not exceed 6MB.
    In case of multiple attachments, please scan all documents as a single file and then upload.
    Documents to be attached are mentioned in 'Points to be considered while applying for name' section.
  8. Submit : Click on the ‘Submit’ button to proceed for payment.
    You will get confirmation alert, asking to proceed for payment

Name reservation - 5

Click on Yes, you will be then asked to pay Rs 1,000/- After payment is made your application will be sent for processing. You will be get approval or rejection mail.

On successful submission of the proposed name in RUN service, SRN will be generated and shown to you which will be used for future correspondence with MCA.

Also Challan will be generated depicting the details of the fees paid by the user to MCA.

The Central Registration Centre (CRC) may on the basis of information and documents provided, reserve the name as a follows:

  • 20 days from the date of approval (in case name is being reserved for a new company)
  • 60 days from the date of approval (in case of change of name of existing company)

Where after reservation of name, it is found that name was applied by furnishing wrong or incorrect information, then -

  1. if the company has not been incorporated, the reserved name shall be cancelled and the person who has made the application shall be liable to a penalty which may extend to one lakh rupees;
  2. if the company has been incorporated, the Registrar may, after giving the company an opportunity of being heard -
    1. either direct the company to change its name within a period of 3 months, after passing an ordinary resolution;
    2. take action for striking off the name of the company from the register of companies; or
    3. make a petition for winding up of the company.
Author
Posted by CA Ankit Sharma under Company-Law

I am CA, you can contact me for resolving all your tax queries. Reach me at ankitsharma1141@gmail.comContact

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