Company IncorporationLegal Advice

How to Do a Company Name Check?

In this blog, learn about the process of company name check and things to consider while choosing the name of a business.

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Ministry of Corporate Affairs (MCA), holds a database of the businesses that have been registered in the country. In this blog, we will talk about the way of checking a business name in India in detail. People often mistake conflating the business name with the brand name. For example, Paytm is a brand name rather than the company’s legal name, which is One97 Communications Limited. Your company name must be distinct in India and not conflict with any other business name.

In today’s competitive market, the business name produces positive associations. As a result, choosing a business name is a significant stage in the incorporation procedure. Now the issue is how to pick a business name throughout forming a private limited liability corporation. 

Why is it Important to Choose a Name for Your Business? 

The name of the India Company serves as the company’s identification and as the term by which its customers and employees refer to it. Choosing a company name may also be more accessible than selecting a market opportunity. As a result, many people have launched a company without first establishing an appropriate name. 

When you lose clients who don’t understand what your product does because there are so many comparable firms or the brand name, it’s simply complicated for them to locate you. It may damage the reputation of the product or the company itself. Consequently, here’s a guide on deciding on a company name in India. 

Checking the Entity’s Name: A Guide for Beginners 

The Registrar of Corporations (RoC) has published guidelines that apply to all companies in India. However, a few of these guidelines are subjective, which means that whether an application is approved or rejected depends on the officer’s judgment when processing the application.

  • The applicant must adhere to all applicable rules and regulations to choose a company name.
  • The name selected for the business must not be identical or confusingly similar to the name of any other existing company.
  • The use of articles (a, an, and the) will not be considered when naming a solitary person or thing.
  • Applicants must refrain from utilising phonetic terms in their applications.
  • Applicants must refrain from using any abusive language.
  • The applicant should also perform a trademark search.

If all of the requirements listed above are satisfied, the applicant will be able to register the name.

  • Companies with names that include the terms insurance, bank, stock market, asset management, open-end fund, and so on must get regulatory permission from agencies such as the IRDA, SEBI, RBI, and so on before going public.
  • Companies with names that include international, Globe, India, Asia, and so on must have a minimum authorised capital of INR 5 lakhs or more. 
  • Following this, the applicant must examine the availability of the company name to prevent being rejected by the MCA.


Checking the Availability of the Company’s Name

The first step is to go to the MCA website and click on the CHECK COMPANY NAME tab. The procedure for verifying a person’s identity is relatively straightforward. The second step is to enter the firm’s name that you want to start (you can add more than one name). You should not include a suffix such as LLP or Pvt. Ltd in this column. The next step is to input the details of your Commercial Activity. Consider the following example: if you are offering garments, you should include apparel in the activity type.

When you click on search, you will see all of the results with a similar name to the one you are looking for when searching for business name availability. The error message “Entered Company/LLP name does not exist” will be shown if the name is not accessible.

Search for a Trademark 

As indicated in the figure above, you should verify whether a Registered Trademark protects your suggested name. When you choose CHECK TRADEMARK from the CHECK TRADEMARK dialogue box, you will be sent to the IP India Portal. Upon arrival, click on the trademark search button, allowing you to search for existing trademarks similar to your company name by entering the name of the company and the class of products and services. 

Also, keep in mind to look for trademarks that include ‘Phonetic’. Consequently, you will learn about Trademarks that have a similar sound to your suggested business name, which will be helpful information.

The Utilisation of a Given Name 

If the name seems accessible, you may apply for the MCA. If the name is very distinctive, you may be able to use it directly in the form of incorporation of the firm. Furthermore, if the likelihood of the proposed names being available is low, you may make a second name application. 

In this name application, you may submit a maximum of two characters for consideration. If the MCA does not accept any of the two suggested names, the applicant will be given one more opportunity to use any other two names of their choosing.

Certain Unsuitable Terms As Per the Central Government 

Following is a list of terms that the Central Government forbids unless prior authorisation is provided for the use of such words.

  • The Emblems and Names (Prevention of Improper Use) Act, 1950, prohibits the use of certain terms that the Act prohibits.
  • The use of trademarks that have been registered under the Trademark Act of 1950 is prohibited.
  • To any class of individuals, some terms are deemed offensive (s)
  • The use of the phrase ‘British India’.
  • There is no such thing as a term that indicates a connection between your company and the federal or state governments.
  • Any word that indicates that your firm has a relationship with an embassy or foreign government is acceptable.
  • It is a term that denotes an affiliation with a National Hero or a highly valued individual. For example, the name ‘Mahatama Gandhi Enterprises’ cannot be used as the name of a corporation.
  • Only a government-owned corporation has the right to use the word ‘State’ in its name.
  • You cannot use a state, city, country, or continent as the only name for your organisation, such as Mizoram Pvt. Ltd. or New York Enterprises.
  • It is forbidden to refer to an enemy country by its official name (as listed by the Central Government).

What Does the Law Say?

Section 20 of the Companies Act, 1956, states that no firm shall be established with a name that is considered to be inappropriate. Similar or too nearly identical to the name of an existing firm, the name of a trademark that has been registered, or a trademark that has been submitted for registration, or any other person, as defined by the Trade Marks Act, 1999, is regarded to be undesirable. 

Once the new rules enacted by the Ministry of Corporate Affairs (MCA) take effect, anyone interested in registering a company must search the MCA website for similar names that have already been registered and ensure that the suggested name is unique before applying. 

Section 4(3): A firm will not be registered with a name that contains any of the words or expressions of the Central or any state governments, any of their corporations, agencies, or bodies that they have established, or any of their agencies, bodies, or corporations that they have established. This is true except in cases where previous clearance has been provided for such use. 

Checking the Availability of a Company’s Name 

The site gives many search possibilities to find the word or phrase/s inside the proposed name. They also give detailed data to ensure no similarities of any type with an already registered name. You may then evaluate the findings before a final decision is made on the name to be submitted to the appropriate authorities.

Final Words 

One of the most significant phases in implementing a business is determining whether or not a specific name is available ahead of time. Following the processes mentioned above, you will be able to decide on the organisation’s name quickly. However, the ultimate decision on whether or not to adopt or reject the suggested names rests with the MCA. Instead of struggling to develop a unique term, you can simply combine two generic words to create something unique. 



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