Clarity On Guidelines For Reserving The Name Of The Company By MCA

The MCA has amended the Companies (Incorporation) Rules, 2014. In the revised Rule 8 for reservation of name of a company, the Ministry has elaborated the provision by inserting various illustrations. The Rule has been divided into 2 parts – Rule 8A and Rule 8B.

Rule 8A deals with the undesirable names and Rule 8B limits the use of words such as Board, commission, National, Republic, etc. only after obtaining previous approval of Central Government.

While considering the application related to name approval the following illustrations must be considered otherwise the names shall be considered as undesirable and will not be approved. Some of the illustrations have been discussed hereunder:

Clarity On Guidelines For Reserving The Name Of The Company By MCA:

1. The name should not be identical to the singular or plural form of an existing company:

The user of plural or singular form of the words will be considered as undesirable and such name wouldn’t be approved by authority on receipt of an application for reservation of name of the company. This can be better understood with the help of illustration as provided by MCA:

For e.g., Green Technology Limited shall be considered the same as Greens Technology Limited and Greens Technologies Limited.

2. Change in Tense would be considered as Similar Name;

The department will reject the application for reservation of name of the company if someone uses different tense in the name of the company such as:

Ascend Solution Ltd. is the same as Ascended Solutions Ltd and Ascending Solutions Ltd.

3. Different use of phonetic spellings is treated as identical name;

Chemtech Ltd is same as Chemtec Ltd, Chemtek Ltd, Cemtek ltd, Kemtech Ltd and Kemteck Ltd.

4. Change in order of words of name and use of the article before the proposed name;

The application for reservation of name will not be considered an applicant just changes the order of words or use of article before any name of the existing company for e.g.:

  • Ravi Builders and Contractors Ltd is same as Ravi Contractors and Builders Ltd
  • Congenial Tours Ltd is same as A Congenial Tours Ltd. and The Congenial Tours Ltd.

5. Variation in the spelling of two names;

Name including slight variation in the spelling of existing company name would be considered as resembling name and the department will reject the application for reserving a name of the company. For example,

Color Technologies Ltd is similar to Colour Technologies Ltd.

6. Addition, deletion or modification of exiting name;

Addition, deletion or modification in any existing name of the company is not allowed and the concerned department will spare no time to reject the proposed name of the company. To instance,

  • Salvage Technologies Ltd is an existing name and it is same as Salvage Technologies Delhi Ltd. and Salvage Delhi Technologies Ltd.
  • Thunder Services Ltd is same as Thunder11 Services Ltd. and OneThunder Services Ltd.

7. Change in meaning either in Hindi or English;

Complete translation or transliteration or any part of an existing name either in Hindi or English. For Example:

National Electricity Corporation Ltd is same as Rashtriya Vidyut Nigam Ltd.

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