As per Companies Act, 2013 or LLP act, 2008 is one of the most important steps in the incorporation process.
An acceptable name for a Company or LLP has three parts, object part, constitution and the name part,. The following illustrations, illustrate the three parts of a name:
Name should be unique
The name should be unique and acceptable, as defined by the Companies Act, 2013 or LLP Act, 2008. The name cannot be similar to an existing company or LLP or trademark in the same industry or field. For example, there exists Company by the name AAA Engineering Private Limited, and then the name AAA Engineering LLP would not be allowed. Also, similar names like AAA Engineers Private Limited shall not be allowed as it is in the same industry and is similar to an existing company. However, AAA Bike Private Limited will be allowed as it is in a different industry / field.
Therefore, while choosing a company name, ensure there are no other names registered with the MCA in the same industry or field as that of the proposed name.
Object may be included in Name
Private Limited Company, One Person Company, Public Limited Company and LLP name should include an object part that clearly states the nature of business of the entity. The object part defines the main activity undertaken by the Company or LLP. The below mentioned are some of the well known object parts used in company or LLP names:
Even if a similar name exists, if the object of the Company is different, a proposed name can be allowed, as it is unique as a whole. For instance, if a company exists with the name AAA Hospital Private Limited, then AAA Trade Private Limited will be acceptable, as the objectives of the companies are different. However, names without any object or vague objects shall not be allowed. For example, VERVE Private Limited or PUNE Private Limited will not be allowed as it contains not object; VERVE Group Private Limited will not be allowed as the object is too vague. The object should be clearly state the purpose of the Company or LLP.
Ensure that your proposed name contains a relevant object part that is not too vague. Names without object part or names with object part that are vague will not be allowed.
Constitution Part to be including in Company Name
The constitution part defines the type of entity the name represents.
Private Limited Companies are represented by Private Limited Company or Private Limited or Pvt. Ltd Company.
One Person Companies are represented by OPC or One Person Company.
Limited Companies are represented by LTD Company or Limited or Limited Company.
Limited Liability Partnerships are represented by LLP or Limited Liability Partnership.
Ensure that the proposed name contains a constitution that is relevant to the type of entity incorporated.
Minimum Authorized Capital for Certain Words
The uses of certain words in the name of a company require the proposed company to have a minimum amount of authorized capital. The table details the word and the amount of minimum authorized capital required.
|Word||Authorized capital required|
|Corporation||Rs. 5 Crore|
|International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia being the first word of the name||Rs. 1 Crore|
|Industries / Udyog||Rs. 1 Crore|
|If International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia is used within the name (with or without brackets)||Rs. 50 Lakhs|
|Hindustan, India, Bharat being first word of the name||Rs. 50 Lakhs|
|Enterprises, Products, Business, Manufacturing||Rs. 10 Lakhs|
|If Hindustan, India, Bharat is used within the name (with or without brackets)||Rs. 5 Lakhs|
Checking Name Availability Online
The proposed name should be unique when compared to an existing Company Name or a Limited Liability Partnership Name or Trademark. The below mentioned are steps for checking the list of company and LLP names in existence:
1. Go to the following website or search for “MCA Name Availability” online:
2. In the Company or LLP Name, enter the proposed company or LLP Name and click search.
3. The list will show the list of Company and LLPs in existence with similar name.
4. If the search returns “No records found”, then there are no similar companies or LLPs with similar name.
The following are steps for checking the Trademarks in existence:
1. Go to the following website or search for “Trademark Search India” online:
2. In the wordmark, enter the proposed name.
3. Enter the relevant class by entering the class details in the class textbox. Class details can be accessed by clicking on “Class Details”. Click on search.
4. The list will show the list of trademarks, similar to the proposed name.
5. If the search returns “No records found”, then there are no similar trademarks similar to the proposed name.