Settled on a name for your new company?

Things to keep in mind while choosing your company name

A company name has incredible power to lend credibility, assure quality and set customer expectations.

A company name represents what your brand stands for. Names create an identity that people can associate with. Given the importance of a company name, it is time you put time and effort in naming your company.

The MCA (Ministry of Corporate Affairs) has a regulatory framework set up that you have to consider while naming your company. If your company name does not fall under the set of rules given by MCA, your application might be rejected. Already have a name in mind? Search the MCA database to check company name availability here. Search

Let’s go through some common reasons why your new company name might get rejected.

• Keep an eye out for trademarked - The proposed name, in any case, should not be identical to any existing company's name, or a registered trademark*, or a trademark already in the process of registration.

  For example, ‘ebay’ is an existing company name. The MCA will not approve the name ‘ebae’ even though the spelling is different.

• A common problem - Do not add common words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. to an existing company name. It will get rejected.

• A place to ignore - If your company name is different from the name of an existing company only by adding the name of the place, MCA will not approve.

  For example, Ace Cochin Limited will not be allowed if the name Ace Limited already exists.

• Get mandatory regulators approval - If your company name includes words like ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’, etc., you are required to get formalities mandated by respective regulators such as IRDA, RBI, SEBI, MCA, etc., depending on the word.

• ‘State’ is out of the question - Never use the word ‘State’ while naming your company. Only government companies have the authority to use the word ‘State’ in their names.

• Don’t copy and paste - A company name that is an exact Hindi translation of an English name for an existing company will not be allowed. For example, Ace Aam Producers will not be approved if a company named Ace Mango Producers already exists.

• OMG is a no - Abbreviated names such as ‘XYZ limited’ or ‘123K limited’ cannot be chosen by new companies

• Be nice! - The proposed company name should not be offensive to any section or group in the society. Or should not contain any profanity.

*To check if there is an existing trademark for your proposed name Check Here

ClearTax suggests you

• Choose a name relevant to your business

  How strange would it be to keep a name that has nothing to do with the industry or products your company deals with? Thumb rule to go by - “The name should portray your products and services with a broad view.”

• Block a domain name and subscribe for internet promotions as the first step!

  Once your company name is approved, get your domain name registered. The issue of not getting the desired domain name while building your business website when needed is then ruled out!

Ok then! Now you know the limitations you have to name a new company. Brainstorm and get creative with the name. If you need expert help in registering your company and other compliance, ask us over here.