{"id":23584,"date":"2021-01-07T11:55:29","date_gmt":"2021-01-07T06:25:29","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=23584"},"modified":"2022-12-01T11:30:41","modified_gmt":"2022-12-01T06:00:41","slug":"what-are-the-requirements-before-choosing-company-name-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/","title":{"rendered":"What are the Requirements Before Choosing Company Name in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Entrepreneurs\ncannot start a business without a business name! But the process of choosing\nthe right business name that is attractive, and that describes what your\nbusiness is about is not easy. The business has largely failed in the past due\nto a name that has not worked yet, so it is important to pick the right label.<\/p>\n\n\n\n<p>Choosing\na catchy business name plays a vital role in it is going to be successful, and it\nis the key to differentiate you from your opponents. Consumers connect a\ncompany name with the value it offers to them. Choosing the right name for your\ncompany is not an easy task. Choosing a suitable and practical name plays a big\nrole in future prosperity for any new business or start-up.<\/p>\n\n\n\n<p>A company name makes the first impression on potential customers. Therefore, it becomes crucial to choose a well-suited name, which has to do with all efforts. The nomenclature of a company does not only cover the technical aspect, but it also includes some legal proceedings.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#Different_Types_of_Company_Based_on_Name\" >Different Types of Company Based on Name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#Choosing_of_Company_Name_according_to_Business_Activity_and_Industry\" >Choosing of Company Name\naccording to Business Activity and Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#MCA_Rules_that_Entrepreneurs_should_Follow_while_Choosing_a_Company_Name\" >MCA Rules that Entrepreneurs should Follow while Choosing a\nCompany Name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#RULE_8A_Stating_a_List_of_Undesirable_Names\" >RULE 8A Stating a List of\nUndesirable Names<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#RULE_8B_Codes_Specific_Usage_of_%E2%80%93_Word_or_Expression_to_be_Used_with_Prior_Government_Approval\" >RULE 8B Codes Specific Usage of \u2013 Word or Expression to be\nUsed with Prior Government Approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#Concrete_Lines_Needs_to_be_Remember_while_Using_Adapting_or_Confirming_any_Company_Name\" >Concrete Lines Needs to be Remember while Using, Adapting or Confirming any Company Name.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#Basic_Knowledge_to_Have_Before_Selecting_a_Company_Name\" >Basic Knowledge to Have Before Selecting a Company Name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/what-are-the-requirements-before-choosing-company-name-in-india\/#_Conclusion\" >&nbsp;Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Company_Based_on_Name\"><\/span>Different Types of Company Based on Name<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Private\nLimited<\/strong>: &nbsp;involved\nthe words \u2018Private Limited\u2019 or \u2018Pvt Ltd.\u2019 <strong><\/strong><\/li><li><strong>Public Limited<\/strong>: involved the words \u2018Public Limited\u2019 or just \u2018Ltd.\u2019  <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choosing_of_Company_Name_according_to_Business_Activity_and_Industry\"><\/span>Choosing of Company Name\naccording to Business Activity and Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once the entrepreneurs understand\nwhat your company does &amp; whom it is trying to serve, it shall give you a\nplatform for names in order to choose from or a starting point. You should\nremember that your target audience should be able to connect with the name.<\/p>\n\n\n\n<p>Negative Example: &#8211; \u201cChubbybrain\u201d is a company that funds other companies, however, because of its name, \u2018Chubbybrain\u2019, no one knew what they did as business operation as they couldn\u2019t relate the name to fundraising. Positive example: &#8211; Glucon D is a company that prepares energy powder, and its name suggests in itself that this brand is known among the people as glucose energy drink. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MCA_Rules_that_Entrepreneurs_should_Follow_while_Choosing_a_Company_Name\"><\/span>MCA Rules that Entrepreneurs should Follow while Choosing a\nCompany Name<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup>, the MCA (Ministry of Corporate Affairs) has laid down certain rules on the naming of a private limited or LLP company. According to the Act, to approve a company name, it must be unique and descriptive, &amp; desirable. The below discussed are both the aspect of MCA Rules.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"869\" height=\"368\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Untitled-3.png\" alt=\"Choosing a Company Name\" class=\"wp-image-23599\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Untitled-3.png 869w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Untitled-3-300x127.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Untitled-3-768x325.png 768w\" sizes=\"(max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Unique Component<\/h3>\n\n\n\n<p>This part of the company&#8217;s name depends\nentirely on the creativity of the owner. Sometimes, people can add names just\nby adding the names of the directors. It has nothing to perform with the\nservice provided by the company or even has any definite meaning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Descriptive Component<\/h3>\n\n\n\n<p>If the\nentrepreneurs can&#8217;t think of a creative name, they can make it direct and\ndescriptive of the service or product which they live in. This means that the\ncompany name communicates with consumers in the field of work or the nature of\nservices offered.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RULE_8A_Stating_a_List_of_Undesirable_Names\"><\/span>RULE 8A Stating a List of\nUndesirable Names<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nbelow discussed are the list of undesirable names.<\/p>\n\n\n\n<ul><li>A&nbsp;Company Name Registration&nbsp;should not be <strong><em>forbidden under Emblems and Names (Prevention and Improper Use) Act, 1950<\/em><\/strong> unless previous permission is allowed.<\/li><li>The company name should not include any <strong><em>existing trademarks<\/em><\/strong> that fall under the same class of goods or services activity unless prior consent has been obtained by the promoter from the trademark owner.<\/li><li>A Company name should not evolve any words that are <strong><em>outrageous to any class of people<\/em><\/strong><\/li><li>The proposed company name should not be indistinguishable or have near <strong><em>similar to any existing <\/em><\/strong>any entity<strong><em>.<\/em><\/strong><\/li><li>The proposed company name should not be indistinguishable with the name reserved under rule 9<\/li><li>In case the basic and primary concern of the company related with activities like chit funds, investments, financing, securities, or a similar related works, then that proposed company name should include accordingly their respective financial activity such as debt, investment, security, and so on. While the other aspect, your proposed name shall not lie under the above said financial activities. <\/li><li>Your proposed company name should not have resembled the popular or abbreviated name of an existing LLP or company.<\/li><li>Your proposed company name should not have resembled the company or <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>LLP registered<\/strong><\/a> abroad, and such name has been registered with registrar for establishing its subsidiary in India. Even rule 8 of name similar is considered for name approval.<\/li><li>Your company name must not include words representing legal persons or business constitution or connotations like Firm, HUF, PTE, Inc., AG, etc.<\/li><li>Your company&#8217;s name shall not include words like &#8216;British India or English East India company&#8217;s. <\/li><li>The proposed Company name should not relate with any of the links or connections with the foreign embassies or consulates. <\/li><li>The proposed name should not be interconnected or related with the any of the national hero patronage or important persons who were in previously holds ranks in the Government positions.<\/li><li>The proposed Company name should not resemble to any preciously dissolved company which has dissolved with the 2 years of the company. In case, the company name is struck off from the register due to some of the reasons, which literally results from the same name shall not be up for the next twenty years. <\/li><li>LLP name which struck off from the said register can not be applied for the next 5 years. <\/li><li>To propose the companies name has starting or ending words like Bank, Stock Exchange, Asset Management, Nidhi, Mutual fund etc. Shall need to achieve a prior acknowledged and pre-approval from concerned regulatory establishments like IRDA, SEBI, MCA, RBI etc. and their suggestions must be complied and noted accordingly. <\/li><li>The company name shall not hold vivid words like State, Continent, Country, place etc. as a prefix or suffix in the name. <\/li><li>Your company name shall not be in the process of using common words to describe an activity. <\/li><li>Prohibited from using the names of foreign cities and countries etc. Further provides the applicant shall mandate to procure the proofs of business linked with. <\/li><li>In further cases, in Sec 8 of companies, the proposed name should include words like Foundation, Forum, Federation, Association, Chambers, Council, Electoral Trust, Confederation, etc.<\/li><li>A proposed company related with Nidhi zone should evolve with the word \u201cNidhi Limited\u201d in its ending name. <\/li><li>You can apply for the name of the company that had removed recently from the said register after the successful completion of said debarred period of 3 years\u2014provided with the same cause that no special instructions have been issued by the competent authority for the same.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RULE_8B_Codes_Specific_Usage_of_%E2%80%93_Word_or_Expression_to_be_Used_with_Prior_Government_Approval\"><\/span>RULE 8B Codes Specific Usage of \u2013 Word or Expression to be\nUsed with Prior Government Approval<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nselection of any company name is a challenge in itself. The following words &amp;\n&nbsp;combinations thereof will not be used in\nthe name of a company in English\/ any of the languages portraying the same\nmeaning unless and until the previous approval of the Central Government has\nbeen obtained for the use of any such word\/expression:-.<\/p>\n\n\n\n<ul><li>Authority,<\/li><li>Board,<\/li><li>Commission,<\/li><li>Undertaking,<\/li><li>Central,<\/li><li>Republic,<\/li><li>National,<\/li><li>Union,<\/li><li>Rashtrapati,<\/li><li>Small Scale Industries,<\/li><li>Federal,<\/li><li>Financial Corporation and the like,<\/li><li>Municipal,<\/li><li>President,<\/li><li>Khadi and Village Industries Corporation,<\/li><li>Prime Minister or Chief Minister,<\/li><li>Minister,<\/li><li>Panchayat,<\/li><li>Forest corporation,<\/li><li>Development Scheme,<\/li><li>Statute or Statutory,<\/li><li>Development Authority,<\/li><li>Nation,<\/li><li>Governor,<\/li><li>Court or Judiciary,<\/li><li>Usages of word &#8216; Scheme&#8217; with Government names\nlike India, Bharat, State, &nbsp;or any\nGovernment authority or any resemblance with schemes of Central, State or local\nGovernment, authority\/Bureau.&#8221;.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concrete_Lines_Needs_to_be_Remember_while_Using_Adapting_or_Confirming_any_Company_Name\"><\/span>Concrete Lines Needs to be Remember while Using, Adapting or Confirming any Company Name.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In\ncase you do not want to get extra and unnecessary trouble while registering\nyour company names under private limited, the name for your company needs to be\nkept in mind before ensuring such names.<\/li><\/ul>\n\n\n\n<ul><li>Choose a name, which is easier to recognize and remember having an impactful sense, easily can be pronounced, short in words and a thoughtful in it and circulates or communicate your brand significantly in your customers. Say no to rigid multiple and complex words.<\/li><li>In\ncase you picked a name, which has\nalready in existence and similar sounds with any pre-existing brand name. Trust\nus; it&#8217;s a bad idea. We found numerous cases where existing names were ordered to be changed further only\nof their striking similarities\nto other existing companies, and you won\u2019t ever like to do that,\nright? Literally, you\nhave spent a &nbsp;hefty sum of amounts on marketing your brand.<\/li><li>The\nproposed name must propagate or clarify your significant vision and the\nmotive of your future business. Let the name of your\ncompany conveys all about\nyour business and which\nproduct you\u2019re selling. <\/li><li>During the era of digitalization, when the domain exists after your brand\u2019s name, it doesn\u2019t\nmake any sense to choose that name for your company. <\/li><li>Together with the domain name, must need to check and ensure it&#8217;s availability with a &nbsp;proper\ndomain extension. Suppose, a business involved in India, .in or .com is suitable and\nsuggested prominently. For\nglobal businesses or country-specific businesses, you have to find and\nchoose the extension\naccordingly.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_Knowledge_to_Have_Before_Selecting_a_Company_Name\"><\/span>Basic Knowledge to Have Before Selecting a Company Name <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Ignore the usage of abbreviations, adjectives\nand generic words<\/li><li>Grants and permits from the concerned authorities to\nplan and include a few words in your company\u2019s name. <\/li><li>Do not pick any name Unnecessary. <\/li><li>Find and keep knowledge by the research of the\nexisting company name.<\/li><li>Do check for the usage of the registered\ntrademark in the same name.<\/li><li>Do propose six names.<\/li><li>Do not evolve words that indicate a separate\nbusiness.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Conclusion\"><\/span>&nbsp;Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having a unique and eye-catching\nname gives the company a boost by a reasonable margin. Clever names with\nintelligent wordplay make a good impression of the company as well as the\nfounders. Consumers have a greater inclination towards such companies.<\/p>\n\n\n\n<p>The correct name of your start-up\nhas a significant impact on your success. The wrong name can have a negative\neffect like failure to attract the right customers. Sometimes it also leads to\nlegal and commercial hurdles. In the other situation, a powerful and clear name\nis extremely beneficial in branding and marketing your business and its\nproducts\/services.<\/p>\n\n\n\n<p>Kindly contact with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> to get professional assistance to choose the right name for your business.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/learn-the-process-for-the-reservation-of-company-name\/\">\nLearn the Process for the Reservation of Company Name\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Entrepreneurs cannot start a business without a business name! But the process of choosing the right business name that is attractive, and that describes what your business is about is not easy. The business has largely failed in the past due to a name that has not worked yet, so it is important to pick [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":23589,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1400],"acf":{"service_id":"1"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":7117,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23584"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=23584"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23584\/revisions"}],"predecessor-version":[{"id":51066,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/23584\/revisions\/51066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/23589"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=23584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=23584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=23584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}