{"id":50617,"date":"2022-11-09T18:26:39","date_gmt":"2022-11-09T12:56:39","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50617"},"modified":"2022-11-09T18:26:41","modified_gmt":"2022-11-09T12:56:41","slug":"what-are-the-common-reasons-for-company-name-rejection-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-are-the-common-reasons-for-company-name-rejection-in-india\/","title":{"rendered":"What are the Common Reasons for Company Name Rejection in India?"},"content":{"rendered":"\n

One\nof the main steps in a Private Limited Company Registration process is the\nselection of a Company Name. Giving the right Name to the Company is essential,\nand the Company’s Name should be unique because it distinguishes it from other\ncompanies. The applicant can seek approval of the proposed name well in advance.\nThe newly introduced SPICe+<\/em><\/strong> incorporation process\nintegrates the process of obtaining DIN (Director Identification Number), Name\nApproval & Incorporation into a single step. However, only one choice of\nName can be provided while Company Registration is using SPICe+ Form. In case\nthe Name of the Company provided is identical to an existing Company Name or\nTrademark or LLP Name, then the entire Form would have to be resubmitted. In\nthis blog, we will discuss some common reasons for Company Name Rejection in\nIndia.<\/p>\n\n\n\n

Some Reasons\nBehind Company Name Rejection in India<\/h2>\n\n\n\n

Following\nare some main reasons behind Company Name Rejection in India<\/p>\n\n\n\n

  1. Proposed\nName comprises of undesirable words<\/strong>: Use of\nunpleasant words like Central, Union, National, and Federal etc., in the Name\nof the Company or is considered undesirable by the Ministry. Hence, the MCA\n(Ministry of Corporate Affairs) will reject the names, including such words.<\/li>
  2. Use\nof Words like Udyog or Industry, Products, Manufacturing, Business<\/strong>:\nThe Ministry of Corporate Affairs will allow for the use of such words like Udyog\nor Industry, Products, Manufacturing, Business only if the Company proposes to\ndeal in various business activities and\/or the Company is already carrying on\nvarious business activities<\/em><\/strong>. The words will not be allowed in names that\nare into only a particular trade. Moreover, Startups with no record of doing\nmore than one business may not be able to use the words Udyog or Industry,\nProducts, Manufacturing, or Business just because they propose to undertake\nmany activities. A proven record may be requested.<\/li>
  3. Proposed\nName Consists of Keywords such as India, Bharat, Corporation, International,\nAsiatic<\/strong>: The use of keywords such as India, Bharat,\nCorporation, International, Asiatic, etc., will only be allowed when the scale\n& scope of the business justify the use of these words. Hence, the MCA will\nreject the Name with these words if the scale or scope of activity is\nconsidered as small.<\/li>
  4. The\nProposed Name doesn\u2019t consist of a suitable prefix<\/strong>: This is\none of the main reasons behind Company Name Rejection. The prefix in the\nCompany Name is usually the Company’s Name or its brand. To get Name Approval,\nit is vital that it consists of a suitable prefix. If the prefix used is\nidentical to an existing Company Name or Trademark or it is inappropriate, a\nrejection may be received by the MCA.<\/li>
  5. The\nProposed Name is inconsistent with the activities described in the Main Objects<\/strong>:\nIf the proposed Company Name is not in line with the main objects mentioned in\nthe Company Incorporation application, the proposed Name will be rejected by\nthe Ministry. For instance, the Company name is ABC Manufacturing Private\nLimited, with the main object as per application is to provide business\nconsultancy services. Then, this will be rejected on the grounds that there is\na complete inconsistency in names & objects.<\/li>
  6. Proposed\nCompany Name is too general without any distinct identity or word<\/strong>:\nIf a proposed name of the Company is too general without any distinct word or\nidentity, then it may be rejected. For example, Super Enterprises Private\nLimited, in this Name, both the Name & object are very general & do not\nprovide any identity regarding the Company. Moreover, names like Super Indian\nPrivate Limited, Best Business Private Limited may be considered as names\nwithout any distinct identity or word.<\/li>
  7. The\nproposed Name is similar to the existing Company Name<\/strong>:\nThis is also one of the main reasons behind Company Name Rejection. Two\nidentical names can often be used to deceive the public at large. According to\nthe Rules of Companies Act, 2013, no 2 Companies can be registered with the\nsame names & Trademark. If the proposed Name is identical to any existing\nname, then it will be rejected. Also, one vital point to be noted is that names\nwith identical pronunciation, such as BAAN & BAN will be considered similar\nby approving authorities.<\/li>
  8. The\nProposed Name indicates the Partnership\/Patronage of Any National Leader or Government<\/strong>:\nAny proposed Company Name that indicates Partnership\/Patronage of Government or\nof any National Leader will be rejected by the Ministry of Corporate Affairs.\nFor example, Delhi State Hospital Private Limited may be rejected as it shows\nPartnership or the Patronage of the Government.<\/li><\/ol>\n\n\n\n

    Things You\nShould Know for Company Name Reservation<\/h2>\n\n\n\n

    The\napplication for Company Name Reservation<\/a><\/strong> shall be applied in Part-A of the SPICe+ Form. Once\nthe Ministry of Corporate Affairs approves the Name, the Ministry will reserve\nthe Name for 20 days & in those days, the applicant must submit the\nremaining documents & complete the Company Incorporation process. The\napplicant must file the incorporation form within such time period otherwise,\nthe Name will expire & the new name application will have to be filed with\nan additional fee.<\/p>\n\n\n\n

    Conclusion<\/h2>\n\n\n\n

    After discussing some common reasons behind Company Name Rejection in India, it is concluded that if you choose a name for the Company after taking care of all these points as mentioned above, then there are bright chance that the Name chosen by you will be approved in a single shot. However, seeking professional help in this regard is highly recommended to avoid any rejection by the MCA<\/strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n

    Read Our Article<\/b>:How can I check the Availability of Company Name in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"

    One of the main steps in a Private Limited Company Registration process is the selection of a Company Name. Giving the right Name to the Company is essential, and the Company’s Name should be unique because it distinguishes it from other companies. The applicant can seek approval of the proposed name well in advance. The […]<\/p>\n","protected":false},"author":35,"featured_media":50621,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2847],"acf":{"service_id":"1"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":4645,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50617"}],"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\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50617"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50617\/revisions"}],"predecessor-version":[{"id":50620,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50617\/revisions\/50620"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50621"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}