What Is a Company search?
When forming a new company, you must conduct a company name search to ensure that the name you choose is available. Choosing a company name is an important part of the company formation process for many businesses because many companies keep the same name throughout their existence. Checking the availability of a company name before initiating the formation process reduces the chances that the formation will be rejected by the authorities.
The MCA (Ministry of Corporate Affairs) has established a regulatory framework that you must consider when naming your company. Your application may be rejected if your company name does not comply with the MCA's set of rules. Have you already decided on a name? Check the MCA database for availability of company names.
How to Check Company Name Availability
To see if a company name is available for use online, follow these steps.
Click ‘Search’ after entering the name of your business. There are three ways to see the information on the screen:
- The first situation is an example of this
If you get less than three results, the message ‘high probability’ will be displayed, which indicates that the government has a high likelihood of approving your company name.
- In the second scenario,
This means that you have a 50% chance of getting your company name approved if the message displayed is of moderate probability.’
- In the third instance,
The message ‘low probability’ will be displayed if there are more than eight results. Your company has a very good chance of being accepted here. If this is the case, you should go with a different name.
Guidelines for Choosing Your Company Name
Identical or Similar
Your chosen name should not be similar to any other existing name, either in spelling or pronunciation. An offence may be committed in the event that such a name is discovered. A company's name should include both a noun and an activity word to reflect the type of business that is being conducted. As a result of the company name search procedure, you can avoid making these kinds of mistakes.
It's expected that the applicant will conduct a trademark search to make sure that the company's chosen name isn't already trademarked. Duplication is avoided by using this method.
Pick a Name That's Relevant
The following do's and don'ts should be included in a name:
|A word or phrase that provides a sneak peek into what the company does should be included in the description||A name should not be offensive|
|To avoid confusion or offence, a name should be distinctive||Attempts to use the plural form of any existing name will not work|
|The abbreviation PVT LTD should be added to the end of the name in the case of PVT LTD.||Creating a new company by combining two or more names that sound alike can be viewed as a single entity|
|It is not counted as another name if you use a different tense or number.|
Block Your Domain Name
You should block your domain name in order to prevent the creation of a duplicate by an applicant.
Approval by the Government
Regulators like the RBI, SEBI, IRDAI, and others may need to approve the name of a company if it includes words like ‘insurance,’ ‘’bank,’ ‘stock exchange,’ ‘venture capital,’ ‘asset management,’ and ‘mutual fund.’
It is recommended that companies with names such as ‘International’, ‘Globe’ or ‘Continental’ have a minimum authorised capital of ₹5 lakhs.
You're on the lookout for a catchy name. Right. Vakilsearch makes it simple to check on the availability of your business name. For your business, we recommend that you look for and settle on a short and sweet name. Make sure it's easy to say and relevant to your business!
By using our company name search tool, you can increase the chances that the Ministry Of Corporate Affairs - Government of India will approve your name application and lower the possibility that subsequent legal complaints will be filed against your business.