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Company Registration

Incorporation refers to the process of establishing a new legal entity, typically in the form of a company, which is recognized as a distinct legal person under the law. This legal entity can be created for various purposes, including running a business, launching a startup, or operating a micro, small, or medium-scale enterprise. In India, the Ministry of Corporate Affairs (MCA) governs and oversees the operations of companies registered under the Companies Act of 1956, as well as the updated 2013 version and other relevant legislations and regulations. The Ministry of Corporate Affairs has instituted a regulatory framework that must be adhered to when selecting a name for a company. It is imperative that the chosen name complies with the guidelines established by the MCA; otherwise, the application for company registration may be declined or rejected.

About MCA

The Ministry of Corporate Affairs in India is overseen by the Finance Minister of the Government of India. This ministry plays a crucial role in the regulation and oversight of Indian enterprises operating within the industrial and service sectors.

Guidelines for choosing your Company

The Registrar of Companies (ROC) in India has specific criteria that applicants must adhere to when naming a company. The approval of the company name is also subject to the discretion of the officer handling the application. The closer the adherence to the specified naming rules, the higher the likelihood of the company name being approved.

  • Uniqueness: The selected name must be unique and not already registered for another company. Once a name is registered, it cannot be allocated to another entity. The name should also be descriptive, reflecting the nature of the company's business. For example, a finance company should include the word "Finance" in its name, which helps describe its primary activity. However, businesses in different sectors, like logistics or restaurants, should not include "Finance" in their names.
  • Avoid Abbreviations: Avoid using abbreviations, adjectives, or generic words in the company name, as these are likely to be rejected. Certain specific terms like "banks" "exchange," and "stock exchange" require approval from the Reserve Bank of India (RBI).
  • Trademark Compliance: The proposed company name should not infringe on any registered trademark or a pending trademark registration. If the chosen name matches or resembles a registered trademark, you must obtain consent from the trademark owner or the trademark applicant and submit it along with your name approval application.
  • Patronage and Government Association: The company name should not imply any association, connection, or patronage with a national hero, personages of high esteem, or individuals currently or previously holding significant government positions. It should also not suggest an association with the Indian or foreign government.
  • Domain Name: It's advisable to secure the domain name associated with your company's chosen name to prevent duplication or conflicts.
  • Regulatory Approvals: If your company's name contains certain specific terms like "insurance," "bank," "stock exchange," "venture capital," "asset management," "mutual fund," and others, you may require regulatory approvals from relevant authorities such as the RBI, SEBI, IRDAI, etc., depending on the nature of your business.

By carefully following these naming criteria and ensuring compliance with regulatory requirements, you can improve your chances of getting your chosen company name approved by the Registrar of Companies in India.

Do’s and Dont’s while registering a Company

Do’s

  • A word that describes the company should be mentioned.
  • The name needs to be unique to avoid duplication or offense
  • In the case of the Private Limited Company, the name should have the abbreviation at the end.

Dont’s

  • The name should not be offensive
  • The plural version of any existing name is not applicable
  • Separating and joining the different names can be considered
  • The use of different tenses or numbers will not be counted as another name.

Please note that the final authority for approving or rejecting company names lies solely with the Ministry of Corporate Affairs (MCA). The tool provided here is intended for a preliminary assessment of name and domain availability. In certain instances, registered companies, limited liability partnerships (LLPs), or trademarks may not appear as registered due to limitations in data availability. Therefore, the tool's results should be considered as initial estimates and not as official approvals or rejections of company names. It is essential to submit your name choices to the MCA for the official registration process and final determination.

Frequently Asked Questions

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