What does ‘Name’ of a company signify?
The name of a company is a crucial element that defines its identity and brand. It is the official title under which a business operates and is recognised legally. A well-chosen company name can significantly impact the brand’s image, marketability, and overall success. When selecting a company name, it is essential to ensure it reflects the nature of the business, is easy to remember, and is unique enough to stand out in the marketplace. Additionally, the name must comply with the legal requirements and guidelines of the jurisdiction in which the company is registered. Securing a business loan can be instrumental in this process, offering financial support to cover the costs associated with conducting thorough research, trademark registration, and other legal formalities necessary to finalise the perfect company name.
Guidelines for choosing your company name
1. Identical or similar names
Your chosen company name should not be too similar to any existing name, either in spelling or pronunciation. If it is found to be similar, it could lead to legal issues. A company name should include both a noun and a word that describes the type of business being done. By conducting a business name search, you can avoid making these mistakes
2. Trademark
It is important to do a trademark search to ensure your chosen name is not already trademarked. This helps prevent the duplication of names
3. Pick a relevant name
When choosing a name, keep the following do's and don'ts in mind
Do's
- Include a word or phrase that gives an idea of what your business does
- The name should be unique to avoid confusion or offence
- If it is a Private Limited Company (PVT LTD), add "PVT LTD" at the end of the name
Don'ts
- The name should not be offensive
- Do not try to use the plural form of an existing name
- Do not combine two similar-sounding names as it could be seen as the same business
- Changing the tense or number of an existing name does not count as creating a new name
4. Block your domain name
It is a good idea to block your domain name to avoid someone else registering it and creating a duplicate
5. Approval by the Government
Certain names may require approval from regulatory bodies like the RBI, SEBI, IRDAI, and others. This applies if the name includes words like 'insurance,' 'bank,' 'stock exchange,' 'venture capital,' 'asset management,' or 'mutual fund'
6. Authorised capital
For companies with names like ‘International’, ‘Globe’, or ‘Continental’, it’s recommended to have a minimum authorised capital of Rs. 5 lakhs
Things to keep in mind while choosing your company name
Listed below are 10 things to consider when choosing a name for your company in India:
- Complete name check: Make sure the name you are considering is not already taken by another business or trademark. You can quickly check name availability on the Ministry of Corporate Affairs website
- Domain name availability: Check if the name can be used as a domain for your business website. For example, if you plan to use “ExampleCompany.com”, ensure that it is available
- Uniqueness: Ensure your name is unique and not too similar to existing companies. For instance, avoid names like “Tech Solutions Ltd.” if “Tech Solutionz Ltd.” already exists
- Pick easy-to-pronounce names: Choose a name that is simple to pronounce and remember. This makes it easier for clients to find and recall your business. For example, “QuickFix” is easier to remember than “RapidSolutionFixation”
- The company name must reflect your industry: The name should give an idea of what your business does. For example, “GreenGrocers” would be suitable for a vegetable supply business
- Legal compliance: Make sure the name follows the rules set out in the Companies Act, 2013. For example, avoid using prohibited words like “National” or “Bank”
- Trademark check: Search the trademark database to avoid legal issues. Make sure your name is not already trademarked by another business. In India, you can check trademarks through the Intellectual Property India website
- Future expansion: Choose a name that allows for future growth or diversification. For example, “Fresh Foods” can easily expand to include other food products beyond vegetable
- Cultural sensitivity: Make sure the name is appropriate in different cultures and regions. For instance, avoid names that may have negative meanings in other languages
Avoiding abbreviations: Use abbreviations carefully, as they can be confusing. For example, “ABC Corp” may not clearly indicate what the company does
How to check availability of company name online?
To check name availability for a company in India, follow these steps:
Step 1: Go to the Ministry of Corporate Affairs (MCA) website
Step 2: Under the “MCA Services” tab, select “FO Services”
Step 3: Clicking on “Check Company/LLP Name” will open a Captcha window. Enter the Captcha and a new window will appear with the “Enter Company/LLP Name” section. Type in your proposed company name
Step 4: Submit and review. Click the “Search” icon. The system will show if the name is available or if there are similar names
Step 5: Selecting an available name will take you to a new MCA User Login / Registration window. Enter your MCA User ID, password, and Captcha, then log in
Step 6: Complete the registration process and wait for approval
Step 7: For a more formal search, use the “Reserve Unique Name” (RUN) service or SPICe Plus (INC-32) form. Log in to your MCA account to access this service. Submit the proposed name and pay a nominal fee for a detailed check
Step 8: (Optional) You may want to consult a company secretary or legal expert for advice. Make sure the name complies with the Companies Act, 2013, and relevant rules
Documents required for company name search
When you want to register a new company in India, it's essential to conduct a company name search to ensure your chosen name is unique and available. Here are the key documents needed for this process:
- Proposed company name: Have at least one or two names in mind. These should comply with the naming guidelines set by the Ministry of Corporate Affairs (MCA).
- Nature of business: Provide a brief description of your business activities. This helps in determining if your proposed name reflects your business correctly.
- Directors' details: You need to submit identification details of the proposed directors, including their names, addresses, and identification numbers. This information is crucial for verifying the authenticity of the application.
- Registered office address: Include the address of your company’s registered office. This should be a physical address in India, as it will be used for all official communications.
- Application form: Complete the necessary application form for name reservation. This is often done through the MCA’s online portal.
- Additional documents: Depending on your business structure, you may need to provide other documents, such as proof of identity or address for all stakeholders.
Having these documents ready will streamline the company name search process, ensuring a smooth start to your business registration journey.
Securing approval for your company name from MCA in India
Securing approval for your company name from the Ministry of Corporate Affairs (MCA) is an important step in starting a business in India. Here are the key points to consider:
- Check availability: Before applying for approval, ensure your desired name is available. You can do this by searching the MCA's online database to check if the name is already taken by another company.
- Follow naming guidelines: The MCA has specific guidelines for company names. Your name should not be similar to an existing company, should not violate trademarks, and should not contain prohibited words, like "bank" or "insurance," unless you meet certain criteria.
- Use the RUN service: To secure your company name, use the MCA's "Reserve Unique Name" (RUN) service. This online service allows you to submit your desired name for approval.
- Submit required documents: When applying, provide necessary details and documents, including the proposed name and the nature of your business.
- Approval process: The MCA typically takes 1-2 days to review your application. If approved, you will receive a name reservation certificate, allowing you to proceed with your company registration.
- Validity period: The name reservation is valid for 20 days, during which you must complete your company registration. If you miss this window, you’ll need to apply again.
Following these steps will help ensure your company name is approved smoothly, allowing you to move forward with your business plans.
Conclusion
Choosing the right company name and ensuring its availability are crucial steps in the company registration process. It not only defines your brand identity but also helps in establishing a legal foundation for your business. For further assistance with financing your business, consider exploring options for a business loan.