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Acceptable-Name-for-Company-or-LLP

Acceptable Name for Company or LLP

Acceptable Name for Company or LLP

Choosing an acceptable name as per Companies Act, 2013 or Limited Liability Partnership Act, 2008 is one of the most important steps in the incorporation process. In this article, we look at the naming guidelines and process for choosing an acceptable name for a Company or LLP.

Check company name availability online using IndiaFilings Company Name Availability Tool.

Acceptable Name

An acceptable name for a Company or LLP has three parts, the name part, object part and constitution. The following illustrations, illustrate the three parts of a name:

Acceptable-Name-for-Company-or-LLP
three parts of a name

Name Part

The name must be unique and acceptable, as defined by the Companies Act, 2013 or LLP Act, 2008. The name cannot be the same or similar to an existing company or LLP or trademark in the same industry or field. Therefore, in case there exists a Company by the name AAA Engineering Private Limited, then the name AAA Engineering LLP would not be allowed. Also, similar names like AAA Engineers Private Limited will not be allowed as it is in the same industry and is similar to an existing company. However, AAA Cars Private Limited will be allowed as it is in a different industry/field.

Therefore, while choosing a company name, ensure there are no other names registered with the MCA in the same industry or field as that of the proposed name.

Object Part

Every Company (includes Private Limited Company, One Person Company, Limited Company) and LLP name must include an object part, that clearly states the nature of business of the entity. The object part defines the main activity undertaken by the Company or LLP. The following are some of the well-known object parts used in company or LLP names:

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 exists, if the object of the Company is different, a proposed name can be allowed, as it is unique as a whole. For instance, if a company exists with the name AAA Trading Private Limited, then AAA Hospital Private Limited will be acceptable, as the objective of the companies is different. However, names without any object or vague objects will not be allowed. For instance, VERVE Private Limited or Chennai Private Limited will not be allowed as it contains not object; VERVE Group Private Limited will not be allowed as the object is too vague. The object must clearly state the purpose of the Company or LLP.

Ensure that your proposed name contains a relevant object part that is not too vague. Names without object part or names with object part that is vague will not be allowed.

Constitution Part

The constitution part defines the type of entity the name represents.

Private Limited Companies are represented by Private Limited Company or Private Limited or Pvt. Ltd Company.

One Person Companies are represented by OPC or One Person Company.

Limited Companies are represented by LTD Company or Limited or Limited Company.

Limited Liability Partnerships are represented by LLP or Limited Liability Partnership.

Ensure that the proposed name contains a constitution that is relevant to the type of entity incorporated.

Minimum Authorized Capital for Certain Words

The use of certain words in the name of a company requires the proposed company to have a minimum amount of authorized capital. The table details the word and the amount of minimum authorized capital required.

Word

Authorized capital required

Corporation

Rs. 5 Crore

International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia being the first word of the name

Rs. 1 Crore

Industries / Udyog

Rs. 1 Crore

If International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia is used within the name (with or without brackets)

Rs. 50 Lakhs

Hindustan, India, Bharat being the first word of the name

Rs. 50 Lakhs

Enterprises, Products, Business, Manufacturing

Rs. 10 Lakhs

If Hindustan, India, Bharat is used within the name (with or without brackets)

Rs. 5 Lakhs

Checking Name Availability Online

The proposed name must be unique when compared to an existing Company Name or a Limited Liability Partnership Name or Trademark. The following are steps for checking the list of company and LLP names in existence:

1. Go to the following website or search for “MCA Name Availability” online:

http://www.mca.gov.in/DCAPortalWeb/dca/MyMCALogin.do?method=setDefaultProperty&mode=16

2. In the Company or LLP Name, enter the proposed company or LLP Name and click search.

3. The list will show the list of Company and LLPs in existence with a similar name.

4. If the search returns “No records found”, then there are no similar companies or LLPs with a similar name.

The following are steps for checking the Trademarks in existence:

1. Go to the following website or search for “Trademark Search India” online:

http://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx

2. In the wordmark, enter the proposed name.

3. Enter the relevant class by entering the class details in the class textbox. Class details can be accessed by clicking on “Class Details”. Click on search.

4. The list will show the list of trademarks, similar to the proposed name.

5. If the search returns “No records found”, then there are no similar trademarks similar to the proposed name.

To incorporate a Company in India or Register an LLP, visit IndiaFilings.com

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