When choosing a name for your company or LLP in India, make sure it's unique, relevant and compliant with all naming conventions laid down by the MCA.
Acceptable Name
Selecting a suitable name in accordance with the Companies Act, 2013, or the Limited Liability Partnership Act, 2008, is a crucial initial step in the process of establishing a company or LLP. In this article, we examine the naming criteria and procedures for choosing a permissible name for a Company or LLP.
Name Part
The name must meet the unique and acceptable criteria outlined in the Companies Act, 2013, or the LLP Act, 2008. It cannot be identical or resemble an existing company, LLP, or trademark within the same industry or sector.
For instance, if there is already a company named AAA Engineering Private Limited, using the name AAA Engineering LLP would be prohibited. Similarly, names like AAA Engineers Private Limited would not be allowed since they are in the same industry and closely resemble an existing company. However, a name like AAA Cars Private Limited would be permitted because it operates in a different industry or field. Therefore, when selecting a company name, it’s essential to ensure that there are no other registered names with the Ministry of Corporate Affairs (MCA) within the same industry or sector as the proposed name.
Object Part
All types of entities, including Private Limited Companies, One Person Companies, and Limited Companies, as well as Limited Liability Partnerships (LLPs), are required to incorporate an object part in their names that explicitly describes the nature of their business. This object part serves to define the primary activity undertaken by the Company or LLP. The subsequent list comprises some commonly used object parts in the names of companies and LLPs:
| Technology | Textiles | Motors |
| Power | Steel | Hospital |
| Hotel | Restaurant | Holding |
| Construction | Real Estate | Trading |
| Information | Manufacturing | Financial |
| Pharmaceuticals | Medicals | Travels |
| Aviation | Shipping | Energy |
| Solar Power | Electricals | Containers |
| Designs | Foods | Garments |
| Mobiles | Plastics | Interiors |
Even if a similar name already exists, a proposed name can be approved if the Company’s objective is distinct, making it unique as a whole. For example, if there is a company named AAA Trading Private Limited, the name AAA Hospital Private Limited would be acceptable because the purposes of these companies are different. However, names lacking a clear object or having vague objects will not receive approval. For instance, names like VERVE Private Limited or Chennai Private Limited, which lack a specific object, would not be permitted. Similarly, a name like VERVE Group Private Limited, with an overly vague object, would also be disallowed. It is essential that the object clearly defines the purpose of the Company or LLP. Make sure your proposed name includes a meaningful object part that is not overly vague, as names without an object part or with a vague one will not be sanctioned.
Constitution Part
- Private Limited Companies can be represented by ‘Private Limited Company,’ ‘Private Limited,’ or ‘Pvt. Ltd Company’
- One Person Companies are often represented by ‘OPC’ or ‘One Person Company’
- Limited Companies can be indicated by ‘LTD Company,’ ‘Limited,’ or ‘Limited Company’
- Limited Liability Partnerships are typically represented by ‘LLP’ or ‘Limited Liability Partnership.
Minimum Authorised Capital for Certain Words
Certain words used in a company’s name necessitate that the proposed company maintain a minimum level of authorised capital. The table provides information on these words and the corresponding minimum authorised capital requirements.
| Word | Authorised capital required |
| Corporation | ₹5 Crore |
| International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia being the first word of the name | ₹1 Crore |
| Industries / Udyog | ₹1 Crore |
| If International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia is used within the name (with or without brackets) | ₹50 Lakhs |
| Hindustan, India, Bharat being the first word of the name | ₹50 Lakhs |
| Enterprises, Products, Business, Manufacturing | ₹10 Lakhs |
| If Hindustan, India, Bharat is used within the name (with or without brackets) | ₹5 Lakhs |
Checking Name Availability Online
- Step 1: Visit the provided website or perform an online search for ‘MCA Name Availability’ at http://www.mca.gov.in
- Step 2: Enter the company or LLP name in the ‘Company or LLP Name’ field and initiate the search
- Step 3: The displayed results will present a list of existing companies and LLPs that share a similar name
- Step 4: If the search yields a ‘No records found’ message, it indicates that there are no existing companies or LLPs with a matching name.
Conclusion
selecting an appropriate name for a Company or LLP is a critical step in the incorporation process. The name must conform to legal requirements, ensuring it is unique and clearly defines the entity’s objectives. Thorough name availability checks and adherence to naming guidelines are essential for a successful start.
