Procedure of approval of company name and MCA name guidelines

The promoters of
the company is require to decide the propose name of the company. The propose
name should not be identical or similar name of the any existing company in
India. The promoter should check the name availability on MCA Website

After the
verification of availability of name, promoters need to finalized the at least
six unique names. Then prompters are required to upload Form 1A with
digital signature and pay the fees. 

While deciding
the proposed name promoter should take into account the departmental guidelines
issued by MCA. 

Some important points of
name guidelines are as below:- (These are the old guidelines under Company Act 1956. For Name guidelines under Company Act 2013 Kindly refer http://taxclick.org/type/company-law/name-guidelines-for-reservation-of-name-of-the-company-under-company-act-2013 )   

1)     
The name of the company should be in according
with the principal object of the company. However it is not necessary that
every name should indicate its object. But when there is some indication of
business in the name then it should be in conformity with its object.  For example if propose name is “XYZ SOFTWARE
PVT LTD” then object of the company should be relating to software (it may developing,
trading or dealing in software).

2)     
The name like Chit Fund, Investment, Loan, etc
is allowed only for such company whose main business is finance.

3)     
The propose name should not be close phonetic
resemblance to the name of company in existence for example, J. K. Industries
limited is the existence company propose name should not be Jay Kay Industries
Limited.

4)     
Name should not be contain popular abbreviation
of well known companies like TISCO (Tata Iron and steel company) etc.

5)     
The name should not be general name, like
“Software Development Limited” it should be specific name, like “XYZ Software Development
Limited”.

6)     
  The
words like “Co-Operative”, Sahakari” or equivalent to the word “Co-Operative”
in regional language is not allowed.

7)     
Improper name which attracts provisions of the
Emblems and Names (Prevention of improper use) Act, 1950 is not allowed.

8)     
Name should not indicate the Government’s
participation unless there are such circumstances.   Examples names like, National, Union,
Central, Federal, Republic, President, etc.

9)     
The name “British India” is not allowed.

10)  
The names showing the connection with local
authority or union or state government is also not allowed. Example name like,
Municipal, Panchayat, etc

11)  
If proposed name includes the name of the
register trade mark, then no objection certificate from the registered owner of
the trade mark is required.

12)  
Name should not be identical with or too nearly
resembles with previously registered company. For example existence company
name is “Hindustan motor and general finance company” the propose name
“Hindustan Motor Limited”.

13)  
Only adding the name like New, Modern, etc.
before the name of existing company is not allowed. Example name like “New Reliance
Industries Limited”.  

14)  
If proposed name includes the name like French,
British, German is allowed only when there is some collaboration or connection
with foreigners of that particular company or place.

1)     
For some specific name there is authorized
capital requirement, which is mentioned as below:-  

Sr. No.

Key Word

Required Authorized capital

1

Corporation

Rs. 5 Crore

2

International, Global, Universal,  Continental, Inter Continental, Asiatic,
Asia being the first word of the name

Rs. 1 Crore

3

If any worlds at above 2 is used within the name
(not as a first word)

Rs.50 lakh

4

Hindustan, India, Bharat being the first word of
the name

Rs. 50 lakh

5

If any word of 4 above is used within the name (
not as first word)

Rs. 5 lakh

6

Industries / Udyog

Rs. 1 Crore

7

Enterprises, Products, Business, Manufacturing

Rs. 10 lakhs

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