Choosing the right name for a company is a crucial and primary step before its incorporation. Prior to the company’s formal registration, it is essential to check the availability of the proposed name. If the name is not unique or exceeds certain limitations, it may face rejection during the application assessment process. In this article, we will explore the key aspects of the Company Name Reservation procedure.
To reserve a company’s trade name with the Ministry of Corporate Affairs (MCA), it is essential to follow specific criteria for name availability in India. Merely selecting a name does not guarantee its uniqueness, as it might already be chosen by another party. To claim sole ownership of the trade name, it must be secured through copyright or trademark registration.
Additionally, the chosen company name should accurately reflect the nature of the proposed business or its commercial activities.
To ensure that the selected name is not similar to existing company or logo names, a thorough name search should be conducted. For this purpose, applicants can seek the services of reputable Legal Consulting Firms in the country.
If the chosen name has a distinctive identity and passes the name search, it can be reserved through the RUN (Reserve Unique Name) application on the official MCA website. The RUN application is specifically dedicated to company name registration.
By adhering to these guidelines and reserving the trade name through the MCA, businesses can secure a unique and appropriate identity for their company.
Before checking the availability of a company’s trade name, it is essential to choose the name according to the required industry standards. To ensure the name’s suitability, certain key features of a good company name have been defined. Let’s examine them one by one.
Company Name must have a Distinctive Identity
The proposed company name must not be identical or similar to any existing company name. It must be entirely unique and distinctive. Even if slight amendments have been made to a registered company name, such as changes in spelling, tense, spacing, addition, or subtraction of characters, it cannot be considered unique and distinctive. These minor modifications do not create sufficient differentiation to avoid confusion with existing company names. To ensure the uniqueness of the proposed name, it should be significantly different from any registered company name and comply with the regulations set forth by the relevant authorities.
Company Name must not infringe a registered Trademark
When choosing a company name, it is essential to ensure that it does not infringe upon any registered trademarks. Infringing on a registered trademark can lead to legal issues and potential trademark disputes. Therefore, it is crucial to conduct a comprehensive trademark search to ensure that the proposed company name is not already registered as a trademark by another entity. Respecting existing trademarks and avoiding any potential infringement is essential for maintaining a company’s reputation, avoiding legal troubles, and safeguarding its brand identity.
Corporate Nomenclature of the Company Trade Name
The corporate nomenclature of the company trade name should avoid including specific types of constitutions, as listed below:
Incorporating these terms in the proposed company name may create confusion with existing entities operating under those particular constitutions. To ensure clarity and distinctiveness, it is advisable to choose a trade name that does not include such terms. This will help in establishing a unique identity for the company and avoid any potential legal issues related to naming conventions.
Special Permission for Naming of Financial Institutions
When naming a financial institution, certain names such as “Insurance,” “Bank,” “Mutual Fund,” and other terms related to financial management require prior approval from regulatory bodies such as the Reserve Bank of India (RBI), State Bank of India (SBI), and other relevant authorities.
Capital Requirement for Specific Phrasal Registration
When proposing names for a company with authorized capital of Rs. 5 lakhs or above, the following words or phrases can be included:
Once the above requirements are met, a company name can be suggested. The Ministry of Corporate Affairs maintains a database containing information about registered companies. To check the availability of a company name, one can use the search index provided on the Ministry of Corporate Affairs portal. For more details on the company incorporation process and how to verify company status, you can seek assistance from the incorporation experts at Registrationwala.
