After getting you Director Identification Number or DIN approved from MCA, you can start your company name approval Process. You can check at MCA site to know whether the company name is available for registration or not.
If you find any company with the same name then your name can not be approved by MCA. Same site can be used for LLP name search. The must important criteria for getting your company’s name approved is that the company’s proposed name should match with the company’s main objective mentioned in the application form.
The new process of company name approval requires you to remember few points while applying for it;
- There should not be an existing company registered with MCA by a similar name.
- The last word of the company should have private limited or public limited according to the type of company you register (you should not mention Pvt. Ltd or (p) ltd or ltd. While applying for name approval).
- The application INC1 should mention at least one name up to a maximum of 6 names in order of their priority.
- You need to mention the significance of naming your company in the name application form INC1 (write a short note on why you have chosen that type of name for your company).
- Mention the main objective of your company in the application form INC1.
- All promoter directors’ personal details should be present in the application form INC1.
Prerequisite for company name approval
Before applying for company’s name approval you must recheck following things;
- The applicant should be one of the promoters of proposed company.
- For registration of private or public limited company the minimum capital must be at least of Rs. 1, 00,000 or 5, 00,000 respectively.
- Use name search facility at MCA site to ensure that your name does not resemble with any existing company.
- The proposed name of the company is not violating the rules mentioned in prevention of improper use act, 1950.
- The proposed name of the company should not offend any religion, community or caste.
After getting your application in form INC1, ROC will take 3 to 7 days time to approve or reject your company name. If your name approval application has been rejected then you have 3 times to resubmit the application form again after rectification.
After the third attempt you have to apply with a fresh application.
After getting name approval, such name will be valid for a minimum period of 60 days. Within this 60days you need to incorporate your company with the available name. In absence of not availing the name within the allotted time the name approved will lapse and any one may apply to get the name.
What are the common reasons for rejection of company name approval application
There can be many reason for not getting your company name application form approved by MCA. Few points are mentioned below;
- The proposed company’s name is identical or closely resemble with an existing company.
- Proposed name is too general.
- The main object has not been clarified in detail.