Picking the right name for your business is as important as any other business-related activity. A brand name is the biggest identity of a business that stays with the business as long as it exists. Perhaps, that’s the reason why the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014 go a long way in enforcing the rules that are to be abided by businesses while naming their companies.
Here is a list of the frequently asked questions related to the name of the company
Q1) How can a company apply for its name ?
Every company incorporated with effect from February 23, 2020 is required to make an application for reservation of name and incorporation through the web service SPICe+. Name(s) of a company can be reserved in Part A of SPICe+. In case the applicant wants to apply for name, incorporation and other integrated services together, he can do so together by filling necessary information in Part A and Part B.
For change of name, web service RUN (Reserve Unique Name) is required to be submitted.
Q2) How many names would be permitted in Part A of SPICe+?
In case an applicant opts for reserving the proposed name first and file Part B of the SPICe+ form later, then maximum two names can be applied through SPICe+ Part A, out of which single name, as made available by Central Registration Centre (CRC), will be approved and reserved for 20 days from the date of approval. In case entire incorporation application i.e. both SPICe+ Part A and B is being filed together then only one name can be entered in SPICe+ Part A
Q3) What are the words or expression which can be used only after obtaining previous approval of Central Government?
In terms clause {b} of sub-section (3) of Section 4, the following words and combinations thereof shall not be used in the name of a company in English or any of the languages depicting the same meaning unless the previous approval of the Central Government has been obtained for the use of any such word or expression: –
a) Board;
b) Commission;
c) Authority;
d) Undertaking;
e) National;
f) Union;
g) Central;
h) Federal;
i) Republic;
j) President;
k) Rashtrapati;
l) Small Scale Industries;
m) Khadi and Village Industries Corporation;
n) Financial Corporation and the like;
o) Municipal;
p) Panchayat;
q) Development Authority;
r) Prime Minister or Chief Minister;
s) Minister;
t) Nation;
u) Forest corporation;
v) Development Scheme;
w) StatuteorStatutory;
x) Court or Judiciary;
y) Governor;
z) the use of word Scheme with the name of Government (s), State, India, Bharat or any
Government authority or in any manner resembling with the schemes launched by
Central, State or local Governments and authorities; and
za) Bureau.
Q4) What are the words on which approval of regulatory authority would be required?
A name shall generally be reserved if it includes the words like ‘Bank’, ‘Insurance’, and ‘Banking’, ‘Venture Capital’ or ‘mutual fund’ or business activity includes the words like ‘Bank’, ‘Insurance’, and ‘Banking’, ‘Venture Capital’ or ‘mutual funds’ or such similar words with the approval of regulatory authority.
Provided that the approval of regulatory authority may be obtained at the time of application for incorporation or change of name, as the case may be.
Q5) What precautions should one take care before applying for the proposed name?
One should be very careful while applying for the name, there can be rejection of name approval application in the following cases:
- Proposed Name exactly identical/resembled/phonetically to the name of an existing company/LLP
b) Proposed Name includes words which are registered under Trademark Act with a specific class(es) c) WrongClass/Category/SubCategory of the Proposed Company is mentioned in the webform.
d) Industrial Activity Code of NIC is not found in consonance with the attached objects of the Company in SPICe+ PART A
e) Proposed Name is found Descriptive i.e. it contains commonly used words (proper pre- fix or suffix not used in name)
f) No significance about Abbreviations used in proposed name
g) Proposed Name indicates words Finance/Investment/Capital/ Holding/ Insurance etc
whereas the proposed objects of the Company do not indicate such activities.
h) Objects mentioned in the form are vague and the TM cannot be ascertained. (E.g. manufacturing / development / producing of all type of goods etc.)
i) Name contain words viz Board, National, Commission etc as given in Rule 8B of the Companies (Incorporation) Rules, 2014 for which previous approval of the Central Government is required.
j) Application made with Restricted and Undesirable names (System may not allow filing of such applications)
k) Proposed name if resembles closely the popular or abbreviated description of an existing company or limited liability as per rule 8A(1)(h) of Companies (Incorporation) Fifth Amendment Rules,2019.
l) Previous approval of the Central Government has not been obtained and attached with application Where any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Government, or any local authority, corporation or body constituted by the anyGovernment.
m) If the proposed name contains the name a foreign country/city/town etc. then applicant has to attach any proof of significance of business relations with such foreign country like MOU with a company of such country. In case proposed name includes name of India and a foreign country (eg. India Japan or Japan India) in such cases name shall be allowed if, there is Government to government participation or patronage and no company shall be incorporated using the name of enemy country.
Note: The Stakeholders are requested to take utmost care in complying with the above instructions as Name Reservation applications may be put into re -submissions or rejections on the above grounds.
Q6) What will happen in case the proposed name is identical or too nearly resembles with the name of an existing Limited Liability Partnership or an existing Company?
The name shall be treated as an undesirable name and sent for resubmission or rejected, as the case maybe.
Q7) Whether the proposed name is undesirable if it is identical with or too nearly resembles with a name which is for the time being reserved and not unexpired?
Yes, it is treated as undesirable.
Q8) How do I apply for a name if the proposed name includes the name of a TradeMark?
In case the proposed name includes a reference of a registered Trade mark name, the user must ensure that he has attached the consent of the owner or applicant for registration of the trade mark along with KYC details (bearing signatures) of Trademark owner. In case the TM owner is a body corporate, the NOC should be provided in the form of a Board Resolution along with KYC documents.
Q9) Whether it is necessary to attach Board Resolution/ NOC with the name reservation application?
Certified copy of Board Resolution in case of change of name of a company and certified copy of Board Resolution with NOC duly signed by the Authorised Representative in case of incorporation of subsidiary of Foreign Company should be attached.
BR is also to be attached while providing NOC for using a resembling name / Trademark.
Q10) Can one apply name with more than one SRN?
No. System prevents application of name reservation in case proposed name is already ‘applied for’ and payment is already made for such SRN.
Stakeholders should avoid this and wait for a reasonable time for payment confirmation before applying the same name again.
Although the list seems too exhaustive, given the permanency of the name of the company and the importance it carries, it is advisable to take note of such minute details while choosing and applying for the name of a company. The name of the company will have perpetual existence just like the company and might be carried on from generation to generation. Hence, all due care has to be taken while applying for the name of a company.
Since 2009, Prof. Preeti Aggarwal has been recognized as one of the top professors of business and corporate law. She has been coaching and mentoring children since she was 14 years old. She has always been passionate about teaching. So it made sense to pursue a teaching career after earning a degree. She has taught more than 20,000 CA, CS, ACCA, and BCom students over the previous 11 years. Her teaching experience benefits many students pursuing CA courses.
