At the time of registration, you must comply with the rules and regulations of companies act 2013. All documents and forms are to be filed in accordance to these rules and regulations.
Entire company name approval process is online, wherein you are required to apply two names of your choice with the objective or the reason of choosing it.
While applying for approval, you must comply with all the rules and regulations of companies act 2013. Below in this article, we have listed most important things one should keep in mind while choosing company name and getting approval for it.
Words to be used at the end of your company name
While applying for approval, in case of a private limited company, the last word of the name should end with “private limited”. You should not write “pvt. ltd.” or “Pvt. Limited” or (p) Ltd, even though it’s generally in use.
Similarly for public limited company, you should end the word of your name with “limited”. You should not use “ltd” or any other words.
In case of a one person company, you are required to write (opc) in between the name and should end it with private limited. This means, in case of OPC, you can end the name with “(OPC) Private Limited”. These words are a must as it will define the type of company you would like to register with ROC and general public can know whether it’s a private limited or OPC or public limited.
Avoid applying with a similar name
The name you are applying for approval should not be identical or too nearly resembles or similar to any company or LLP name which is already registered with ROC.
If you already have a company with the same name, then a no objection certificate from the board of directors of the existing company should be attached while applying for approval.
In addition to checking the database of ministry of corporate affairs, you should also have a look on trademark registration database to know if any thing similar to your company name is registered. If trademark registration already taken by some other person, then you can not use the name for company registration. If you are not seeing it in ROC and Trademark database, then you can apply for approval.
Avoid prohibited words and expressions
Certain sensitive and prohibited words and expressions should not be used in the name. For instance, a word which imply any connection with the state or central government is not allowed to get approval. Similarly certain words require approval of various agencies in India.
Here is a list of few important cases in which certain words are not allowed in the company name or allowed with the approval.
- The word used should not give an impression that the company is connected with the government. If such word is used, then previous approval should have obtained from the government.
- The word “national” can only be used if central government and state government has stake in it.
- To use the word “bank” no objection certificate from RBI is required.
- To use the word “stock exchange” and “exchange”, you need to get approval from SEBI.
- For the word “commodity exchange”, applicant has to get approval from forward market commission.
- words used should not be prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.
- word or words which are offensive to any section of people should not be used.
- should not contain the word “British India”.
- Word such as “state” or name of a state, country, city, continent can’t be used.
- The name can’t be too general.
In addition to the above list, your name may get rejected for some other issues. We suggest you to consult a chartered accountant or advocate or company secretaries who is practicing in company registration matters to help you in getting approval.
Application to the ROC for approval is processed online by using RUN features at MCA site. If you have complied to the rules and regulations of companies act 2013, then it will be approved. When permission to use is granted, you will receive an auto generated email stating that the name has been reserved for 20 days from the date of approval. You need to check your approved email for the exact date up to which it has been reserved.
If you don’t apply the approved name for registration within the time allowed, then it will be open to public for use. This means anyone can apply for it.
If your registration cancelled or within the time period you are unable to complete the registration process, then same process has to be followed again to get approval from ROC.
You need to follow the same process if you want to change your existing company name. In case of group companies, while applying for approval, you need to take No Objection Certificate from all the board of directors for using their group words or similar words which represent their group and attach it to the application.
ROC power for cancellations
If after reservation or approval, it’s found that the name was applied by furnishing wrong or incorrect information, then it can be cancelled by the registrar. The person applied with the incorrect details is liable for penalty which may extend to Rs. 1,00,000.
If the company has already been incorporated with a name which has been taken by providing wrong or incorrect information, then registrar after giving an opportunity of being heard either direct to change it or strike it off from registrar of companies or make petition for winding up the company.
Company registration with a particular name does not mean that it can be used as a trademark. To ensure that your rights is protected, we suggest you to go for trademark registration for the appropriate class of goods and services.
After registration, you need to make sure that the exact company name is displayed in all business letters, notices, publications, invoices, company website and all other receipts. It must be fixed or painted outside of the registered office.
To register a company you can choose services of a practicing chartered accountant, company secretary or advocate. These professionals will guide you in getting the desired name approved and help you to incorporate your company. However, we suggest you to choose a professional who has experience in company registration service.