Guidelines for Choosing a Company Name in India
The name of a company makes for the essence of a business identity. It is one of the first steps involved in the procedure of incorporating a company in India. The guidelines have been mentioned in the draft rules under the Companies Act, 2013. However, before sending the company name for approval to the Ministry of Corporate Affairs (MCA), there are certain things one needs to keep in mind while choosing a company name.
Checklist for choosing a company name in India
- It should be unique and not clash with the name of any other company or one that has been liquidated or struck off from the register
- It should not be offensive
- It should resonate with the objectives laid out in the Memorandum of Association (MoA)
- A financial company should have a name that is significant of its business activities
- The term British India cannot be used
- Names that do not signify anything or are abbreviated must be avoided
- It cannot sound similar even though it has a different spelling
- It cannot be infused with the word ‘co-operative’
- It should abide by the conditions laid out in the Emblems And Names Act
- It cannot denote a connection with a foreign body or a government authority.
What is the authorised capital required for using certain words?
- A company with a required authorised capital of more than 5 crore can use the word Corporation
- A company with a required authorised capital of more than 1 crore can use the word International, Universal, Inter Continental, Asia, Globe and Asiatic
- A company with a required authorised capital of more than 1 crore can use the word Industries or Udyog
- A company with a required authorised capital of more than 10 lakhs can use the word Manufacturing, Products, Business and Enterprises
To register your startup in India or for more information regarding company formation in India, visit our website www.startupchoice.com or drop us a mail at firstname.lastname@example.org.