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Company Name Availability Guideline 2011

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Section 20 of the Companies Act, 1956 requires that the name of the company should not be a undesirable name.

As per Company Name Availability Guideline 2011 effective from 24-07-2011, a proposed name is considered to be undesirable if it is identical with or too nearly resembling with:
(i) Name of a company in existence and names already approved by the Registrar of Companies; 

Company Name Availability Guidelines and Rules 2011

(ii) Name of a LLP in existence or names already approved by Registrar of LLP; or
(iii) A registered trade-mark or a trade mark which is subject of an application for registration, of any other person under the Trade Marks Act, 1999.

While applying for a name in form 1A, the applicant is required to furnish a declaration to the above effect. Also there is an option in the e-form 1A for certification by the practicing Chartered Accountants, Company Secretaries and Cost Accountants, who will certify the conformity of the proposed name to the above.

As per the guidelines, in determining whether a proposed name is identical with another, the following shall be disregarded:
(i) The words Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership;
(ii) The words appearing at the end of the names - company, and company, co., co, corporation, corp, corpn, corp.
(iii) The plural version of any of the words appearing in the name;
(iv) The type and case of letters, spacing between letters and punctuation marks;
(v) Joining words together or separating the words, as this does not make a name distinguishable from a name that uses the similar, separated or joined words. Such as Ram Nath Enterprises Pvt. Ltd. will be considered as similar to Ramnath Enterprises Pvt. Ltd.
(vi) The use of a different tense or number of the same word, as this does not distinguish one name from another. Such as, Excellent Industries will be similar to Excellence Industries and similarly Teen Murti Exports Pvt. Ltd. will be to Three Murti Exports Pvt. Ltd.
(vii) Using different phonetic spellings or spelling variations, as this does not distinguish one name from another. For example, J.K. Industries limited is existing then J and K Industries or Jay Kay Industries or J n K Industries or J & K Industries will not be allowed. Similarly if a name contains numeric character like 3, resemblance shall be checked with "Three" also;
(viii) The addition of an internet related designation, such as .COM, .NET, .EDU, .GOV, .ORG, .IN, as this does not make a name distinguishable from another, even where (.) is written as "dot"
(ix) The addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc., as this does not make a name distinguishable from an existing name such as New Bata Shoe Company, Nav Bharat Electronic etc. Similarly, if it is different from the name of the existing company only to the extent of adding the name of the place, the same shall not be allowed. For example, "Unique Marbles Delhi Limited" can not be allowed if Unique Marbles Limited is already existing; Such names may be allowed only if no objection from the existing company by way of Board resolution is produced/ submitted;
(x) Different combination of the same words, as this does not make a name distinguishable from an existing name, e.g., if there is a company in existence by the name of "Builders and Contractors Limited", the name "Contractors and Builders Limited" should not be allowed;
(xi) Exact Hindi translation of the name of an existing company in English especially an existing company with a reputation. For example, Hindustan Steel Industries Ltd. will not be allowed if there exists a company with name "Hindustan Ispat Udyog Limited";

In addition to above, the user is required to adhere to following:
(i) It is not necessary that the proposed name should be indicative of the main object.
(ii) If the Company's main business is finance, housing finance, chit fund, leasing, investments, securities or combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, viz., Chit Fund/ Investment/ Loan, etc.
(iii) If it includes the words indicative of a separate type of business constitution or legal person or any connotation thereof, the same shall not be allowed. For eg: cooperative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc. However name including phrase 'electoral trust' may be allowed for new company under section 25.
(iv) Abbreviated name cannot be given to a new company. However the companies well known in their respective field by abbreviated names are allowed to change their names to abbreviation of their existing name (for Delhi Cloth Mills limited to DCM Limited, Hindustan Machine Tools limited to HMT limited) after following the requirement of Section 21 of the Companies Act, 1956. Further, if the name is only a general one like Cotton Textile Mills Ltd., or Silk Manufacturing Ltd., and not specific like Calcutta Cotton Textiles Mills Limited or Lakshmi Silk Manufacturing Company Limited, the same shall not be allowed;
(v) If the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding should not be allowed for a period of 2 years from the date of such dissolution. Also if the proposed name is identical with the name of a company which is struck off under section 560 then the same shall not be allowed before the expiry of 20 years from the publication in the Official Gazette.
(vi) If the proposed names include words such as 'Insurance' , 'Bank' , 'Stock Exchange' , 'Venture Capital' , 'Asset Management' , 'Nidhi' , 'Mutual fund' etc., the name may be allowed with a declaration by the applicant that the requirements mandated by the respective Act/ regulator, such as IRDA, RBI, SEBI, MCA etc. Have been complied with by the applicant;
(vii) If the proposed name includes the word 'State, the same shall be allowed only in case the company is a government company. Also, if the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited, the same shall not be allowed;
(viii) If the proposed name contains any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Central Government, any State Government, or any local authority, corporation or body constituted by the Central or any State Government under any law for the time in force, unless the previous approval of Central Government has been obtained for the use of any such word or expression;
(ix) If a foreign company is incorporating its subsidiary company, 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;
(x) Change of name shall not be allowed to a company which is defaulting in filing its due Annual Returns or Balance Sheets or which has defaulted in repayment of matured deposits and debentures and/or interest thereon;

Name Availability Rules 2011 prescribe the following guidelines in the use of keywords, as part of name, while making available the proposed names under section 20 and 21 of the Companies Act, 1956:

Key Words

Required authorized capital (Rs.)

Corporation, corp, corpn, corp.

25 crore

international, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, InterContinental, Asiatic, Asia, Asian being the first word of the name

5 crore

If any of the words at (2) above is used within the name (with or without brackets)

2 crore

Hindustan, India, Indo, Indian, Bharat, Bharatvarsh, Bhartiya or any other country’s name being first word of the name

2 crore

If any of the words at (4) above is used within the name (with or without brackets)

25 lakh

Industries/ Udyog

5 crore

Enterprises, Products, Business, Manufacturing, Venture. 

50 lakh

 
Download MCA Name Availability Guidelines 2011 Circular 45/2011 dated 08-07-2011 >> 
Download MCA Name Availability Rules 2011>>
Download Subsequent amendments to Name Availability Guidelines 2011:
Circular 12/2013 dated 28-06-2013 >>
Circular 07/2012 dated 25-04-2012 >>
Circular 48/2011 dated 22-07-2011 >>

After publication of The Companies Act 2013 in Official Gazettee, The Companies (Incorporation) Rules 2014 have been notified, which redefined the names when considered as Undesirable, Identical,Resembling etc. which should be kept in mind while applying for names of a company on or after 28th April, 2014 (being the date when new form INC-1 made available) Read More >>

e Form 1A for name availability

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