Learn about MCA name check and its guidelines on how to register a unique name for Private Limited Companies in India.
To register a business you should know the MCA naming guidelines. You will need to apply for it in Part A of SPICe + form. Upon approval by the MCA, the business name will be reserved for 20 days. And within those 20 days, you will have to submit all the relevant documents to complete the name registration process.
Choosing a company name is the first and most crucial stage in its formation. The name should be distinctive and easily distinguishable from other businesses in the industry. Also, you must notify the Ministry of Corporate Affairs (MCA) once you have selected a unique name for your firm.
When choosing a name for your business, Rule 8 of the Companies Incorporation Rules 2014 sets specific name approval/availability standards as per the Companies Act 2013, which you must follow. This blog has covered all you need to know about MCA naming standards for private companies in India. Read on!
An In-depth Examination of the Factors to Consider When Picking a Business Name
Neither the suggested name nor another existing name should be similar. A proposed name for a corporation should not be the same as a current company or a Limited Liability Partnership (LLP) business unless the names are related.
The following tests are used to establish whether or not a company’s name is identical to that of an existing company:
Plural Forms Will Not Work
When a firm’s name already exists, using a plural form of any of the words in the name does not distinguish the company from the competitors.
For instance, in the case of an existing business with the name ‘Acme Gear Private Limited Firm’ the proposed name ‘Acme Gears Private Limited Company’ will be rejected since it is just a plural variant of the current company’s name.
Type, Letter case, Space Between Letters, and Punctuation Marks are Inapt
Changes in type, letter case, spacing between letters, and punctuation marks do not distinguish one name from another.
For example, if a business already exists with the name ‘Shine Bright Private Limited Firm’, names like ‘ShineBrite Private Limited Company’, ‘ShiningBright Pvt. Ltd Company’, and ‘SheenBrite Private Limited Company’ will not be permitted to use these names by the MCA.
Joining of Words or the Separation of Words is Irrelevant
For example, suppose a business with ‘Nature Lover Private Limited Company’ already exists. In that case, the names ‘NATUR LOVR Pvt ltd Company’ and ‘NatureLover Private Limited Company’ will not be permitted to be used in the future.
Usage of a Different Tense or a Different Number of the Same Word is Useless
Again, for example, if a business exists with the name ‘Fruit Delight Private Limited Firm’, the names ‘Fruits Delight Private Limited Company’ and ‘Fruit’s Delight Private Limited Company’ will not be permitted by MCA.
A variety of Phonetic Spellings or Spelling Variants is Not Permitted
For example, if a corporation exists with the name ‘P.Q. Industries Limited’, then the names ‘P and Q Industries Limited’, ‘Pee Que Industries Limited’, ‘P n Q Industries Limited’, ‘P & Q Industries Limited’, and ‘P & Q Industries Limited’, will not be permitted.
Misspelt Words Are Insignificant
If a business name contains purposefully misspelled words, you must cross-check it with a name that has correctly checked terms. For example, if a firm with the name ‘Fast Movies Limited’ already exists, ‘Faast Movies Limited’ will not be permitted for usage.
Addition of Internet-related Designations is not Advisable
The addition of internet-related designations such as.com,.net,.edu,.gov,.org, and .in does not distinguish a name from others in the same category. So, taking the above example, if a corporation with the name “Fast Movies Limited” already exists, the names “FastMovies.com Limited” and “FastMovies Dot Com Limited” will not be permitted.
Including Common Names or Titles in a Business Name to Make it Unique Doesn’t Work
For example, the addition of terms such as ‘New’, ‘Modern’, ‘Nav’, ‘Shri,’ ‘Shree’, ‘Sree’, ‘Om’,’Jai ‘, ‘Sai’, and ‘The does not make a name unique. Consider the following scenario: If there is an existing firm with the name ‘Imagine Chips Limited’, then the names ‘New Imaging Chips Limited’ and ‘The Imagine Chips Limited’ will not be permitted.
Additional Inclusion of the Location’s Name is Not Allowed
Additional inclusion solely to include the location’s name will not make a business name unique. Therefore, it is also possible that such names will not be permitted. Consider the following scenario: If there is an existing business named ‘Natural Beauty Limited’, then the name ‘Natural Beauty India Limited’ will not be permitted.
Different Combinations of the Exact Words are Unnecessary
A name is not distinguishable by the different combinations of the same words.
For example, the name ‘Contractors and Builders Limited’ will not be permitted in the case of a firm that already exists with the name ‘Builders and Contractors Limited’.
Translation of the Work is Not Prudent
A name that is the Hindi or English translation or transliteration of the name of an existing corporation or limited liability partnership will be rejected.
Consider These Factors When Picking a Pvt. Ltd. Company Name
You should apply to the business name reservation in Part A of the SPICe + form. As soon as the MCA accepts a name, the MCA will reserve that name for 20 days. Then, you need to submit the remaining documentation and finish the Company Incorporation procedure, which takes around 20 days. Otherwise, the applicant’s name will expire, a new name application will have to be made with an extra price, and the name will have to be renewed.
How to Determine the Availability of a Company Name?
The steps below will show you how to check the availability of a company name online.
- Enter the name of your firm and press the ‘Search’ button.
There will be three alternative methods in which the information on the screen will be displayed:
- First scenario:
If you get less than three results, the message ‘High Probability’ will be shown, indicating that there is a high likelihood that the appropriate government authority will approve your business name.
- The second scenario:
When looking for a business name, if the phrase ‘Moderate Probability’ is given, your company name has a 50 per cent probability of being approved.
- The third scenario:
If more than eight results are displayed, the phrase “Low Probability” will be shown on the screen. In that case, your name has extremely few chances of getting approved. Hence, you need to choose a different name.
Final Words
If a business is registered with a name against the general principles outlined above, the ROC may demand that the name be changed or shut down the company and levy a fine of up to ₹1 Lakh. As a result, choosing a name for the firm is essential since it must be distinct and must conform to the MCA’s name availability standards (MCA naming guidelines).
Therefore, it is generally recommended that you get professional assistance when deciding on an appropriate name for your business that does not violate any applicable laws. For corporate advisory assistance, reach out to the experts at Vakilsearch for new company registration today!
