Company Name Availability Check

Narendra Kumar

31 Jan, 2020

Company Name Availability Check  before Incorporation

Company Name Availability Check the services related to company registration available on the MCA  portal is to check the proposed name availability. The word/s or phrase may be entered and verified for availability before further steps to company registration are taken.

Name of the company is always an important component of the business. The first impression as said is brought from the name. A unique and distinctive name is always a preferred choice. Now it may be noted that even the proposed name of the company has to be scrutinized as per the guidelines laid down by the authority so as to pass through the tests. Thus, it should always be assured that the proposed name does not fall in contravention to section 4(2)&(3) of the Companies Act,2013 read with Rule 8 of the Companies (Incorporation) Rules,2014.

• Section 4(2): The proposed name should not

1. be similar, identical to or resemble very nearly to the name of an existing company registered under this Act or any previous Act,
2. be such that its use by the company
   1. is undesirable in the opinion of the Central Government.
   2. will constitute an offence under any law for the time being in force; or

• Section 4(3): A company will not be registered with a name which has in any word/s or expression/which may give an impression that the company is in any way associated to the Central Government, any State Government, or corporation any local authority or body constituted by the Central/ State government

Unless a previous approval has been obtained for such use.

• Rule 8 states some Undesirable names-

2. In determining whether a proposed name is identical with another allotted or reserved name, some of the differences may be taken into account:
   1. plural version of any of the words appearing in the name may be disregarded,
   2. words appearing at the end of the names – company, corporation, corp, corp, corp. and Co. etc may be disregarded
   3. misspelt words, whether intentionally misspelt or not, do not conflict with the similar, properly spelt words
   4. type and case of letters, punctuation marks and the spacing between letters,
   5. the words like Private, Pvt, Pvt., (P), Limited, Limited Liability Partnership Ltd, Ltd., LLP
   6. use of a different tense or number of the same word does not distinguish one name from another
   7. different combination of the same words does not make a name different from an already existing name.
   8. using various phonetic spellings or spelling variations will not be considered as distinguishing one name from another
   9. the addition of words like Modern, Nav, Shri, Om, Sai, Pal, Jai, Ram, An, The and the likes do not make the name distinguishable from an already existing name
3. For the Companies under section 8 of the Act, the name must include words like Chambers, Confederation, foundation, Association, Federation Forum, and the like etc. Though every ‘Nidhi Company’ must have the last word in the name as ‘Nidhi Limited’.
4. The name shall be considered undesirable, if
   1. it includes the name of a registered trademark or a trademark which is subject to an application for registration unless the consent has been obtained and produced
   2. the proposed name implies association or connection with embassy or consulate or a foreign government

• the proposed name contains the words ‘British India’

1. it attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950);
2. it includes any word or words which are offensive to any section of the people;
3. The proposed name is very similar, identical to or resembles the name of an LLP OR it closely resembles closely any abbreviated description of an existing company or Limited Liability Partnership registered in India or outside.

• the proposed name includes the words indicative of a separate type of business structure like trust, proprietor, co-operative, Sehkari, Hindu Undivided Family, firm, Inc. and the likes.
• The proposed name includes or implies any connection with a national hero or any person of importance and those in high positions in the government.

1. The proposed name is highly vague e.g. ‘OPQLtd.’ or ‘123K ltd’ or ‘PPOL Ltd’
2. Another important detail to be looked into for the proposed name is

• The name must not be identical to the name of a company dissolved due to liquidation proceeding only 2 years prior,
• If the name is identical to the company struck off under section 248 of the Companies Act, then will not be allowed up to 20 years from the striking off from the Official Gazette.
• The name must not be identical to the name of an LLP dissolved due to liquidation proceeding or stuck off only 5 years prior.
• Also, the proposed name to not include words like ‘Mutual fund’ ‘Insurance’, Asset Management’, ‘Stock Exchange’, ‘Venture Capital’, ‘Bank’ ‘, etc., unless meets the requirements of the respective regulations of the industry.
  1. the proposed name contains only the name of a City, a State, a Continent, etc like African Limited, Kenya Limited, Tripura Limited;
• the name is only a generic one, like Silk Cloth Mills, instead of Kirti Silk Mill Co. Ltd

4. The words and combinations must not be used in the name of a company in any given languages translating to the same meaning unless the previous approval of the Central Government has been obtained and produced:

Board,  Rashtrapati, Small Scale Industries,Commission, Authority, Undertaking, National, Union, , Corporation,, Minister, Municipal, Panchayat, Development Authority, Prime Minister or Chief Minister, r, Nation, Forest Corporation, Governor, the use of word ‘Scheme’ in any way that it resembles the schemes introduced by Central, state or local Governments or any other such authority.

5. There might be a case where the proposed name is of a person other than the promoter or their close blood relatives, and then essentially an Objection from such other person(s) must be attached with the application for the name.

• Name availability:

http://www.mca.gov.in/mcafoportal/checkCompanyName.do

The portal provides options for searching the word/s or phrase/s in the proposed name and further provides an elaborate result so as to aid in avoiding similarities of any kind in the registered name of the company. The results may then be analyzed before the name is finalized and applied for to the appropriate authority.