The Companies (Incorporation) Rules, 2014 has prescribed various guidelines for companies governed through Companies Act, 2013. The basic requirement for a name to get approval for the incorporation of a new company is that it shall be both Unique and Desirable.
A unique name means that it has not been used by any other company or LLP and here the test to determine the uniqueness of name is to check that the proposed name shall not be exact match or identical with any existing company or LLP, registered with the Registrar of Companies.
A name shall be considered identical with other name if –
- It is the plural word of the name of existing company or LLP. For example, if there is already a company registered with MCA with the name abc pear ltd. then the abc pears ltd shall be considered as identical with the former. Therefore, such names shall not be allowed.
- The proposed name is intentionally mis-spelt in order to use the existing name. For example, FAST LTD. is already existing then FAAST LTD. shall not be allowed.
- The proposed name shall not become unique just by adding internet related designation like .com, .edu, .org and so on.
- The proposed name shall not become unique just by adding the place the existing name. For example, if there exist a company with the name ABC LTD., then ABC INDIA LTD. shall not be allowed.
The proposed name shall be considered desirable if it does not violate any of the below-mentioned conditions –
- The provisions and rules of Emblems Act, 1950.
- Any registered Trademark or name of a registered trademark unless the trademark owner consents to use the same.
- Words used in the name must not be offensive to any section of people.
Consequently, choosing the right name of the company is equally important as the company incorporation. Therefore, the promoters of the company must keep the naming guidelines in mind while determining the name of the company. Generally, not everyone is aware about these guidelines this is why it is suggested to seek assistance of Experts to decide and the check the availability of name.
If you are also looking for such professionals for incorporating your company then you are at the right platform. Manthan Experts Team will assist you throughout the incorporation process.