What words are not allowed to be used for the company?
What words are not allowed to be used for the company?
To register a company or LLP in India, the name of the proposed entity must first be approved by the Ministry of Corporate Affairs. Application for approval for title must be made under SPICe+ Form. Based on the availability of the company name, the name requested would be approved. If the terms are acceptable, the promoter will be asked to resubmit the Application with more new characters. One of the primary reasons for rejecting a company name is that the proposed company name has words that are not acceptable per the Companies Incorporation Rules. This article looks at words that cannot be used in company names.
Words are not Allowed in Company Name.
The following words or combinations that contain the following terms are not allowed to be a part of a company name or LLP name.
- Board
- Commission
- Authority
- Undertaking
- National
- Union
- Central
- Federal
- Republic
- President
- Rashtrapathi
- Small Scale Industries
- Khadi and Village Industries Corporation
- Forest, Corporations and the like
- Municipal
- Panchayat
- Development Authority
- Prime Minister or Chief Minister
- Minister
- Nation
- Forest Corporation
- Development Scheme
- Statute
- Statutory
- Court or Judiciary
- Governor
- Bureau
- Development Scheme or the use of the word Scheme with the name of Government(s), State, India, Bharat, or any Government authority or in any manner resembling the schemes launched by Central, State, or Local Government or Authorities.
Financial Services
Suppose the company’s primary business is financing, leasing, chit fund, investments, securities, or a combination thereof. In that case, the company name must indicate the related financial activity like Chit Fund, Investment, or Loan.
Business Constitution
Any part of a company name cannot contain words indicative of a separate type of business constitution or legal person like cooperative, Sehkari, Trust, LLP, Partnership, Society, Proprietor, HUF, Firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG, etc.,
Words Requiring Approval of MCA
If a proposed name contains words like insurance, bank, stock exchange, venture capital, asset management, Nidhi, mutual fund, et. c, then approval must be submitted from respective regulators like IRDA, RBI, SEBI, MCA, etc.,
Foreign Country or City
Suppose a company name contains a foreign country or foreign city name. In that case, the name approval can be approved only if the promoters submit proof of significant business relations with such a foreign country.
Words Allowed Only for Section 8 Company
The following words can be used as a part of a Section 8 Company name only:
- Foundation
- Forum
- Association
- Federation
- Chambers
- Confederation
- Council
- Electoral Trust
