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Check Name Of A Company: Method, Procedure & Restrictions

In this article, you will learn how to choose a name for your business. Additionally, you will comprehend how to check name of a company on the MCA portal.

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Check name of a company

Importance of choosing a name for your business

Every entrepreneur should choose the name of his or her business carefully because it shapes the business’s identity and quality. However, it is important to check name of a company before registering for a business name. It is important to check that the name chosen for the enterprise is available and is not the name of an existing enterprise. The chosen name should not be using any registered trademark or the name would be rejected by the authorities.

In this article, you will learn how to choose a name for your business. Additionally, you will comprehend how to check name of a company on the MCA portal.

Why is it important to choose a name for your business?

A company name is crucial for describing an enterprise, establishing an identity among rival businesses, and attracting investors. An organization’s name has the power to establish credibility, guarantee the quality, and raise customer expectations.

It is important to choose a business name that is appropriate and in accordance with the Company Act. Your company name provides people an idea of the goods and services you will provide, thus it is crucial to avoid using any improper words in it.

How to choose a name for your business?

The Ministry of Corporate Affairs (MCA) in India has specified certain guidelines that must be followed to choose a name for your business in accordance with the Company Act. The person processing the application will also impact the acceptance or rejection of the application. The Ministry of Corporate Affairs (MCA) has the ability to accept or reject company names. To choose a name for your business, the following things are best to remember:

  1. You must fulfill all relevant laws and regulations before choosing a name for your business.
  2. The chosen name shouldn’t be similar to any already-existing company name.
  3. The chosen name shouldn’t have any offensive terms in it.
  4. Adjectives and basic words are not permitted in the company name.
  5. Additionally, the applicant needs to search for trademarks since your selected company name cannot use any already registered company trademark.

You should adhere to the following criteria to choose a name for your business :

DO’s

  • A word that provides a brief representation of the firm should be utilized.
  • The chosen firm name must be distinctive to prevent confusion or offensiveness.
  • The acronym must be added towards the end of the firm name in the case of the Private Limited Firm.

DONT’s

  • The name should not contain any abusive words.
  • The selected name should not contain any existing company’s name.
  • The name should not utilize any registered trademark or a trademark that is currently being registered.

Justification for rejecting company names

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It is important for firms to check name of a company before registering to make sure that the name chosen is not identical to any existing company name. It is crucial to check name of a company to ensure that the selected name adheres to the guidelines of the Companies Act and would also be accepted by the Ministry of Corporate Affairs (MCA). It is essential to check name of a company beforehand to make sure that the selected name doesn’t have any inappropriate or undesirable terms as prohibited by the Ministry of Corporate Affairs(MCA).

However, the Ministry of Corporate Affairs may reject a business name if the chosen name is not suitable. The following are a few reasons that justify rejecting company names:

  1. Trademarks: In any event, the selected name shouldn’t be the same as the name of an already-established corporation, a trademark that has already been registered, or a trademark that is currently being registered.
  2. Should not be offensive: The suggested firm name must not offend any societal segments or groups and should be devoid of abusive words.
  3. Common terms: Adding adjectives and basic terms like modern, or on to an existing corporates name will be dismissed.
  4. Acquire the necessary approval: If your firm name contains words like, “Bank,” “Stock Exchange”, etc., it is essential to take prior approval from the respective authorities such as the Reserve Bank of India, Security Exchange Board of India, etc, to use the following words in your company’s name.
  5. No use of the word ‘State’: Since only government-owned businesses are permitted to use the term “state” in their company names, using it in your company name is forbidden.
  6. No copying: It will not be permitted to use a firm name that is a similar Hindi version of an English name for an established business.
  7. Do not use abbreviation names: New corporates cannot choose abbreviated names like “ABC limited” as their company names.

Procedure to Check name of a company

The procedure to Check name of a company can be described as follows-

  1. The Ministry of Corporate Affairs (MCA) maintains a record of all the enterprises that are authorized to operate in the nation. Hence, to check name of a company that you have already chosen, it is important to look for the company name on the MCA portal.
  2. The first thing that can be done to check name of a company is to open the MCA portal. Next, go to MCA services.

After that, select the tab ‘Check Company Name’ under ‘Company Services.’

  1. A page will open up where the company name as well as the activity types can be entered.
  2. Select ‘Search’. Many outcomes with names identical to the one you entered might appear. If the name you entered is not available, the notice “Entered Company/LLP name does not exist” will appear. That name can then be allotted to the company name.

Verify the chosen name's trademark

To confirm that the name selected by a company does not already exist, the applicant is asked to conduct a trademark search. Duplication is prevented by this procedure.

Click on the check trademark tab from the check trademark for your proposed name section. Your browser will direct you to the Intellectual Property India page.

You can check for trademarks by entering the company name, class, and product description. Choosing a trademark that has already been registered or a trademark that is currently being registered is not allowed.

Domain for your chosen name

Once your business name has been authorized, register your domain name immediately. This eliminates the possibility of not securing the appropriate domain name while developing your company website. To prevent duplication, a domain name must be blocked thereafter.

Restrictions while selecting a firm name

Stakeholders are urged to ensure that the suggested name chosen does not include any words that are forbidden in the following sections:

  1. Section 4(2) of The Companies Act,2013
    • As per section 4(3) of The Companies Act,2013, the proposed name should not include the following:
      • be identical or similar to the name of an already registered firm.
      • The firm must not employ the name in a manner that the central government deems unacceptable.
  2. Section 4(3) of The Companies Act,2013
    • As per section 4(3) of The Companies Act,2013, A corporate is not permitted to register with a name that contains any term or word that would suggest that the business is associated with the federal, state, municipal, or other authorities in any way. Except in situations when prior authorization has been given for such use.
  3. Section 20 of The Companies Act, 1956
    • As per section 20 of The Companies Act,1956, a firm having unpleasant names should not be registered. A name identical to or resembling the name by which a firm has been previously registered may be judged undesirable by the Central Government.

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Conclusion

An overview of why a firm should pick a suitable name for their business is provided in the aforementioned article. It further describes the procedure that would enable entrepreneurs to check the availability of a company name on the official portal of the Ministry of Corporate Affairs (MCA). The above article explains how important it is to check name of a company so that it doesn’t contain terms that are unsuitable and doesn’t get rejected.

 

You can consult with Odint Consultancy if you have any questions about the specified subject. We’d be glad to answer your questions.

FAQ’s

Choosing a company name is crucial because it serves as the enterprise’s identification and describes the enterprise.

A company name availability can be checked on the Minister of Corporate Affairs(MCA) website.

A company name’s availability can be found on the MCA portal.

  • An entrepreneur has to open the MCA website and go to MCA services.
  • After that entrepreneur has to go to ‘Check Company Name’ under Company Services.
  • The entrepreneur can type the chosen name and click on search.

If a list of the chosen name appears then the chosen name would be rejected. If it shows, that the entered company/LLP name does not exist, then the chosen company name is available and will be accepted.

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