The draft rules under Companies Act, 2013 defines the naming guidelines for companies (i.e., LLP, Private Limited Company, One Person Company and Limited Company). For a name to be approved a new company, it must be both unique and desirable and meet all the rules as mentioned below.
A proposed name for a company or OPC should not be identical to that of an existing company or limited liability partnership name. To determine is a name is identical to that of an existing company, the following tests are applied:
Plural version of any of the words appearing in the name of an existing company doesn’t make a name unique. Example: If there is already a company by the name of, “Tiger Technology Private Limited Company”, then the name “Tiger Technologies Private Limited Company” will be disallowed as the proposed name is just a plural version of an existing company name.
Changes to type, case of letters, spacing between letters and punctuation marks do not make a name unique. Example: If a company exists with a name, “Tiger Technologies Private Limited Company”, then the names “TIGER TECHNOLOGY Private Limited Company” or “TIGERTECHNOLOGYPvt. Ltd Company” or “Tiger-Technologies Private Limited Company” will not be allowed.
Using Different phonetic spellings or spelling variations does not make a name unique and will be rejected by ROC. Example: If a company exists with a name, “RV Tech Private Limited” then “R and V Tech Private Limited” or “Aarvee Tech Private Limited” or “R n V Tech Private Limited or “R & V Tech Private Limited” will be disallowed.
If misspelled words are used as a name for a company, it shall be checked with properly checked words. Example: If there is a company with a name, “East Retail Limited”, then the name “Eaast Retail Private Limited” will be disallowed.
Using internet related designation such as .co.in .io .com, .net, .edu, .gov, .org, .in does not make a name unique and will be disallowed. Example: If a company exists with a name, “Tiger Tech Limited”, then the name “Tiger.com Limited” or “Tiger Dot Com Limited” will not be allowed.
Addition of common words like Annex, one, two New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. does not make a name unique. Example: If a company exists with a name, “Tiger Tech Private Limited”, then the name “New Tiger Tech Private Limited” or “The Tiger Tech Private Limited” will not be allowed.
The proposed name of company should not be undesirable. A name is considered undesirable if it violates one of the conditions below:
The proposed name should not be similar to registered trade mark or a trade mark which is subject of an application for registration, unless the consent of the owner or applicant for registration is obtained.
If the Company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, then a name indicative of such related financial activities, viz., Chit Fund/ Investment/ Loan, etc. should be a part of the name.
If any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc. then the name will NOT be allowed.
If a proposed name implies association or connection with embassy or consulate or a foreign government then the name will not be allowed.
Vague or an abbreviated name such as ‘ABC limited’ or ‘23K limited’ or ‘DJMO’ Ltd or abbreviated name based on the name
of the promoters will not be allowed.
Example:- BMCD Limited representing first alphabet of the name of the promoter like Bharat, Mahesh, Chandan and David will not be allowed.
If the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., then a declaration must be submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant.
The word “State” will only be allowed in the case of a government company. Generic names will not be allowed: Names that only contain generic words like the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited or the name is a general one, like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd. will not be allowed.
If a proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed only if the applicant produces any proof of significance of business relations with such foreign country like MOU with a company of such country. No company can be incorporated using the name of an enemy country.