To search and check whether the selected name for the company is available with the Ministry of Corporate Affairs (MCA), an individual could visit MCA21: Check Company or LLP Name. In the search tool provided, enter the name of the company an individual would like to have in the name field and the object clause of the business name in the activity field. When submitted, the website will return the list of businesses in existence with a matching name, if any exists. Considering that the tool verifies the name provided against matching names in the company’s database. Though, MCA rules stated that the proposed name for a business cannot be matching or similar to an existing corporation or LLP name. Thus, even if the search tool does not return a matching name, the MCA Officer approving the application for name reservation has the concluding decision on whether the suggested name is similar to that of an existing corporation or LLP name.
Checking suggested company name against trademark database
The Companies Act, 2013, suggested that Company or LLP names are now being cross-verified against the trademark database to make sure no trademark infringement takes place. To check whether the business’s proposed name is in a clash with the trademark database, one must visit the Trademark Public Database. In the trademark search tool, an individual is required to enter the proposed name of the business without the object clause as well as select an appropriate trademark class. The search tool will then return the list of trademarks in existence that is matching to the search term proposed. Again, MCA rules stated that the suggested name for a corporation cannot be matching or similar to a prevailing trademark. Thus, even if the search tool does not return a matching name, the MCA Officer approving the application for name reservation has the concluding decision on whether the suggested name is similar to that of an existing trademark.
MCA Decision on the proposed company name search in India
Businesspersons who find an identical name to that of their proposed company name, in the trademark or MCA database, are generally confused about whether to still apply with the MCA for name reservation. The businessperson or the Company Incorporation consultants are not the deciding authority on whether a name is identical to that of an existing corporate name. Thus, it is best to apply for the name with the MCA with a few options; if the MCA decides the name is not in clash with that of an existing corporation name or trademark, the same would be granted. However, considering that it is best for startups to stay away from legal or trademark violation suits.
The few important tips for company name search in India for a startup business are;
The draft rules under Companies Act, 2013 states the naming guidelines for companies (that is, Private Limited Company, One Person Company and Limited Company). According to the Act, for a name to be approved for the incorporation of a new company, it should be both unique as well as desirable.
The proposed name should not be identical with any other existing company’s name
A proposed name for a business must not be identical to that of an existing corporation or limited liability partnership name.
The proposed name should not be undesirable
The proposed name of a corporation must not be undesirable. A name is considered unwanted if it breaches one of the conditions mentioned below:
Breaches Emblems and Name Act
The proposed company name must not violate section 3 of the Emblems Act 1950.
Breaches Trademark
The proposed company name must not infringe the name of a registered trademark or a trademark which is subject to an 8 application for registration unless the consent of the proprietor or applicant for registration is obtained.
Includes offensive words
The proposed company name must not comprise any word or words which are offensive to any section of the individuals.
Few reasons why the new company name might get rejected are;
Trademarked - the proposed company name must not infringe the name of a registered trademark or a trademark which is subject to an 8 application for registration unless the consent of the proprietor or applicant for registration is obtained.
The proposed name should not be identical with any other existing company’s name
A proposed name for a business must not be identical to that of an existing corporation or limited liability partnership name.
Names indicative of company constitution not allowed: If any part of the proposed company name comprises the words indicative of a separate type of business constitution or legal individual or any connotation that is, co-operative, trust, LLP, partnership, HUF, Firm, Inc., etc. then the name would not be allowed.
Names implying patronage: If a proposed company name contains or implies association or connection with or patronage of a national hero or any individual held in high esteem or important personages who engaged or are occupying important positions in Government, then that name would not be permissible.
A common problem – One must not add common words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. to an existing corporate name. It would get rejected.
A place to ignore - If the company name is different from the name of an existing company only by adding the name of the place, MCA shall not approve.
Get mandatory regulators’ approval - If the proposed company name contains words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Nidhi’, ‘Mutual fund’ etc., then a declaration should be submitted through the applicant that the requirements instructed by the respective regulator, like IRDA, RBI, SEBI, MCA, etc. have been fulfilled with by the applicant.
Names that comprise the word “State”: The word “State” would only be allowed in the case of a government corporation.
Authorized Capital
Proposed company names that comprise words like international, global, universal, continental, Asiatic, Asia, industries, Udyog, Hindustan, India, Bharat, enterprises, products, business as well as others might need the corporation to have a minimum authorized capital of Rs.5 lakhs and above.
Vague or abbreviated name: Vague or an abbreviated name like ‘XYZ limited’ or ‘12K limited’ or abbreviated name created on the name of the promoters would not be allowed.
No offensive words
The proposed company name must not comprise any word or words which are offensive to any section of the individuals.
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