Yes; provided you follow name approval guidelines and the name is approved by the Registrar of Companies (ROC), the registering authority in India.
In this article, we have made a modest attempt to share the rules of getting the name for your proposed company
The First Step:
Check whether the desired name of the proposed company is already exists in India. If it exists, you have to find an alternative name; If similar name doesn’t exist, you can go ahead and reserve the name with ROC by making an application.
The Guidelines for allotted of Names:
As per Sec 4 read with rule 8 of the Companies Act prescribed certain guidelines to be followed for fixing name of a proposed company. Some of the important aspects are –
- Similar or Resembling Name: Name shall not be identical or too nearly resemble to the name of existing company or Limited Liability Partnerships (LLP)
- Keyword used other than promoter name: In case the keyword used in the name proposed is the name of a person other than the name(s) of the promoters or their close blood relatives, No objection from such other (s) shall be attached with the application for name.
- Keyword includes name of relatives: In case the name includes the name of relatives, the proof of relation shall be attached. It shall be mandatory to furnish the significance and proof thereof for use of coined words made out of the name of the promoters or their relatives.
- Name of Registered Trade Mark: The name shall be considered undesirable if it includes the name of a registered trade mark or a trade mark which is subject of an application for registration.
- Name not in Consonance with the object of the company: The name shall also be considered undesirable, if it is not in consonance with the principal objects of the company as set out in the memorandum of association.
- Using name of an existing business: The applicant shall declare in affirmative or negative (to affirm or deny) whether they are using or have been using in the last 5 years , the name applied for incorporation of company or LLP in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity and if, yes details thereof and NOC from other partners and associates for use of such name by the proposed Company or LLP as the case may be and also a declaration as to whether such other business shall be taken over by the proposed company or LLP or not.
- Name can’t contain any word or expression which gives impression that company is in some way connected with the central Govt, State Govt, and local authority.
- Name shall be considered undesirable, if it attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950
- Name of subsidiary of a Foreign Company: If a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is, may be allowed with the addition of word India or name of any Indian state or city, if otherwise available.
- The proposed name should not include name of any foreign country or any city in a foreign country. However the same shall be allowed if the applicant produces any proof of significance of business relations with such foreign country like MOU with a company of such country.
- The proposed name shall not include word with or patronage of a national hero or any person held in high esteem or important personages who occupied or are occupying important positions in Government.
- Abbreviated Name: The proposed name should not contain vague or an abbreviated name such as ‘ABC limited’ or ‘23K limited’ or ‘DJMO’ Ltd. Abbreviated name based on the name of the promoters will also be not allowed. However existing company may use its abbreviated name as part of the name for formation of a new company as subsidiary or joint venture or associate company with some restrictions.
- General Name: The name should not be general one like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd.
- Misleading scope and scale of activity: Proposed name should not give misleading impression regarding the scope or scale of its activities which would be beyond the resources at its disposal.
- Change of line of activities: If any company has changed its activities which are not reflected in its name, it shall change its name in line with its activities within a period of six months from the change of activities after complying with all the provisions as applicable to change of name
- Company can’t use name which will constitute an offence under any law for the time being in force.
Following Guidelines with respect to Authorised capital shall be followed in the use of keyword as a part of name
|Sl No.||Key Words||Required Authorised Capital (in Rs.)|
|2||International, Globe, Universal, Continental, Inter
Continental, Asiatic, Asia being the first word of the
|3||If any of the words at (2) above is used within the name
(with or without brackets)
|4||Hindustan, India, Bharat being first word of the name||50.00 Lakh|
|5||If any of the words at (4) above is used within the name
(with or without brackets)
|6||Industries / Udyog||1.00 Crore|
|7||Enterprises, Products, Business, Manufacturing||10.00 Lakh|