Indian Companies Naming Rulebook
Aug 7, 2023
Complying with Companies Act 2013 and MCA Guidelines for Pvt. Ltd. and LLPs
Naming a company is a crucial step in establishing a distinct identity in the business world. In India, the Companies Act 2013 and the guidelines set forth by the Ministry of Corporate Affairs (MCA) govern the process of naming both Private Limited Companies (Pvt. Ltd.) and Limited Liability Partnerships (LLP). This article serves as a comprehensive rulebook, outlining the criteria, dos, and don'ts for naming Indian companies under these legal entities.
Criteria for Naming Pvt. Ltd. and LLP:
a) Unique and Unambiguous: The proposed name should be unique, distinctive, and not closely resemble any existing company's name. Avoid using generic terms or common words.
b) No Prohibited Terms: The name should not contain terms that are prohibited under the Companies Act or MCA guidelines, such as vulgar or offensive language.
c) Legal Compliance: Ensure that the proposed name complies with the laws of trademarks, copyrights, and any other relevant intellectual property rights.
d) Meaningful and Reflective: The name should reflect the company's business activity and have a meaningful connection to the products or services it offers.
e) Avoid Undesirable Connections: Avoid using names that may create an undesirable connection with any government agency or authority.
Dos for Naming:
a) Check Availability: Before applying for a name, conduct a thorough search on the MCA website to verify if the name is already in use or reserved by another entity.
b) Descriptive and Simple: A simple and easy-to-remember name is beneficial for branding and marketing purposes.
c) Use of Promoters' Name: Using the name of the promoters or founders is a popular choice for Pvt. Ltd. companies to add credibility and recognition.
d) Obtain No-Objection Certificates (NOCs): If the proposed name contains any registered trademarks or is similar to an existing company, obtain NOCs from the concerned parties.
Don'ts for Naming:
a) Undue Length: Avoid excessively long names that may be difficult for customers and stakeholders to remember.
b) Restricted Terms: Refrain from using terms like "Bank," "Insurance," "Stock Exchange," "Nuclear," etc., unless specific regulatory approvals are obtained.
c) Misleading Names: Do not use names that may mislead the public about the company's nature of business or ownership.
d) Offensive or Illegal Names: Avoid names that promote discrimination, hatred, violence, or are against public policy or morality.
Complying with the naming rules and guidelines set by the Companies Act 2013 and the Ministry of Corporate Affairs is of utmost importance for any business in India. A well-chosen name not only creates a strong brand identity but also facilitates smoother registration and legal processes. By following the specified criteria and adhering to the dos and don'ts outlined in this rulebook, founders can confidently choose a suitable and distinctive name for their Pvt. Ltd. or LLP, setting the stage for a successful journey in the Indian business landscape.
At Commenda, one can use our name checker tool to make an informed choice for their company's name. It provides instant feedback on whether the proposed name is available or already in use, thereby saving time and effort for the customer. Additionally, the name checker helps avoid potential conflicts with existing companies and ensures compliance with the naming criteria and guidelines.