Words that Cannot be Used in Company Names

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 name must be made under RUN Name Approval. In RUN Form, promoters can specify upto 2 different names in order of preference. Based on the availability of company name, one of the names requested would be approved. If none of the names are acceptable, then the promoter would be asked to resubmit the application with more new names. One of the major reason for rejection of a company name is that the proposed company name has words that are not acceptable as per the Companies Incorporation Rules. In this article, we look at such words that cannot be used in company names.

Words not Allowed in Company Name

The following words or combinations that contain the following words are not allowed to be a part of a company name or LLP name.

1. Board
2. Commission
3. Authority
4. Undertaking
5. National
6. Union
7. Central
8. Federal
9. Republic
10. President
11. Rashtrapathi
12. Small Scale Industries
13. Khadi and Village Industries Corporation
14. Forest, Corporation and the like
15. Municipal
16. Panchayat
17. Development Authority
18. Prime Minister or Chief Minister
19. Minister
20. Nation
21. Forest Corporation
22. Development Scheme
23. Statute
24. Statutory
25. Court or Judiciary
26. Governor
27. Bureau
28. Development Scheme or the use of word Scheme with the name of Government(s), State, India, Bharat or any Government authority or in any manner resembling with the schemes launched by Central, State or Local Government or Authorities.

Financial Services

If the company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, then the company name must be indicative of 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

If a company name contains a foreign country or foreign city name, then the name approval can be approved only if the promoters submit proof of significant business relations with such 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

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