On 21st May, 2019, the Securities and Exchange Board of India (SEBI) permit mutual funds to par...
Recently, MCA (Ministry of Corporate Affairs) released a notification stating various rules and amending Companies (Incorporation) Rules, 2014. The rules will be called Companies (Incorporation) Fifth Amendment Rules 2019 which came into effect from the date of the publication of these rules, i.e. 10th May, 2019.
The Companies Act, 2013 defines the naming guidelines for the following companies:
In the process of Incorporation of a new company, a unique name of the company must be reserved with the Ministry of Corporate Affairs (MCA). Rule 8 of Companies Incorporation Rules 2014 provides name approval/availability guidelines as per Companies Act 2013 while selecting the names for a company
The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and Companies (Incorporation) Fifth Amendment Rules 2019 has divided the rule into two parts
These rules specify the list of undesirable names, and
These rules are for the word or expression which can be used only after obtaining a previous approval of Central Government.
The Companies (Incorporation) Fifth Amendment Rules 2019 aims at better transparency while determining the name of the company under the Companies Act, 2013. Under the illustrations, stress has also been given on the plural or singular form of words in one or both names or type and case of letters, the spacing between letters, punctuation marks and special characters used in one or both names etc.
Sub-rule 1: A name applied for shall be deemed to resemble too nearly with the name of an existing company, if, and only if, after comparing the name applied for with the name of a current company by disregarding the matters set out in sub-rule (2), the names are same.
Sub-rule 2: The following matters are to be disregarded while comparing the names under sub-rule (1):
Provided that clauses (f) to (h) and clauses (k) and (l) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.
Further, you can read full notification related to Companies (Incorporation) Fifth Amendment Rules 2019 here.