How to Choose Right Name for One Person Company in Chennai
Determining the name of the business is of utmost importance; it must be distinctive, appealing, and one of a kind to set it apart from the competition. The Companies Act of 2013 specifies several rules for naming a one-person company (OPC).
The Ministry of Corporate Affairs (MCA) has established a regulatory framework that must be taken into account while choosing the one person company. The application may be turned down if the OPC’s name does not adhere to the guidelines established by the MCA.
Given the foregoing, we go over in this blog for the benefit of interested readers the steps and regulations to be adhered to while selecting a suitable name for an OPC.
The significance of naming your OPC correctly
In order to distinguish your company from those of your rivals, to stand out amid the crowd, and to win over investors, it is crucial to have a distinctive company name. The trademark’s major worth is built upon foundation of company name. A good company name is crucial if you want clients to locate you, talk about you, or even promote you. The business function is important, but so is having a strong reputation.
A company’s name has a significant impact on the development and perception of its brand and has the power to make or break an enterprise. Getting it right is essential when the brand’s name serves as its face.
It frequently makes a good initial impression on a buyer. For business owners and investors, it is the first impression. Investors prefer to choose enterprises based on their commercial potential, but some also consider qualitative considerations like marketing and the choice of a company name. You can stand out among possible investors by choosing the correct company name.
Business strategy and target audience
A company name might assist in conveying your precise business approach. Ad agencies aim to convey a sense of fun and brand loyalty, whereas banks frequently want to convey a sense of conservatism and prudence. In both situations, a company’s name might aid in reiterating its core principles.
Company names can also result in media coverage. Journalists prefer to write about names that have the potential to garner attention. Whether trying to locate a company or recommending it to others, readers will find it easier to recall one with a memorable corporate name. A memorable name that sticks in the customers’ minds draws large crowds.
Sums up everything about the company
Just coming up with a company name is not seen as strategic because it communicates an emotional appeal while establishing a firm as a leader in its field. The ideal name takes into account many different criteria. Certain values and beliefs are associated with the business name, which also helps to develop the brand. The business name encapsulates all that the organization stands for. It occupies your thoughts more than the products and the design.
Your unique take on the industry
There are many businesses in each field, and when emerging industries grow in popularity and draw entrepreneurs, many of these businesses offer comparable services. What factors influence a customer’s choice of business? The traits and operations of the firm, as well as its name, work to establish a brand. It is the identity of the entire brand, not just the name of the business.
Factors to consider when choosing a name for your OPC in Chennai
Uniqueness: One distinguishing feature of the business is its name. A name cannot be assigned to another firm after it has been registered. This name must have some meaning. The word “finance” should be present in the name, for instance, if the business is a financial company. This term captures the company’s character. Hence, “finance” cannot be in a company’s name if it is in the logistics or restaurant industries.
Avoid abbreviations: Any acronyms, adjectives, or general terms will be disregarded. Reserve Bank of India (RBI) approval is required for the use of the words bank, exchange, and stock exchange.
Trademark: Unless the consent of the owner of a registered trademark or the applicant for a trademark registration is provided together with the name approval application, the proposed company name cannot infringe on a trademark that is registered or that is the subject of a trademark application.
Patronage: The proposed company name cannot imply affiliation, support, or admiration for a national hero, someone who has held in high regard, or someone who has had or is now holding a position of authority in the government. No reference to the Indian or foreign governments may be made in the proposed name.
Block your domain name: To prevent duplication, an applicant must block the domain name.
Regulatory approval: The RBI, Securities Exchange Board of India, Insurance Regulatory and Development Authority of India, and other regulatory bodies may need to approve the firm name if it contains the phrases insurance, bank, stock exchange, venture capital, asset management, mutual fund, etc.
- Prohibited words and phrases:The name shouldn’t contain any offensive words or phrases.
- It is inappropriate to use any name’s plural form.
- Using several verb tenses or numeric expressions won’t be counted as using another name.
- Avoid selecting names that are the same as or nearly the same as other names already in use.
- Avoid picking a name that offends or is unattractive.
- Make sure the name is unique and not too general.
- The word “state” is not authorized in the name, nor should it contain the name of another nation.
- The MCA does not approve of the term “British India,” so avoid using it.
- Names that implypatronage are alsonot permitted.
- Avoid using any names connected toan embassy, consulate, or foreign government.
- Avoid using abbreviations or shorthand in the name.
- Trademark registration:Before choosing your name, you must undertake a comprehensive investigation into the already-registered trademarks.
Brand identity:Recall that the rules must be followed and that your company name may not be the same as your brand name. The following qualities should be present in a good brand name: It should be special or distinctive (like Kodak or Mustang). It ought to be extened. It ought to be simple to remember, say, and identify.
Brand personality:The term “brand” refers to an essential component of your identity. It describes your identity and your nature or line of work. A brand, then, is what you do and how you do it, not just a logo, an image, or a sticker. A name, logo, tagline, sticker, image, etc. that may generate buzz for your business can help viewers and listeners associate your brand with that buzz. The most crucial aspect of a brand’s identity becomes its name. Branding is what people say about you while you’re not in the room, according to Jeff Bezos, the CEO and creator of Amazon.
Steps to follow while choosing the right name for your OPC in Chennai
A name for your entity can be chosen with the help of extensive study and brainstorming. The next step after acquiring a name is creating an identity. It is crucial to have a strong sense of self for a variety of reasons, including:
- Increase and maintain consumer confidence
- Make an impression using publicity techniques like marketing, advertising, etc.
- Ensure successful business operations and increase profits
- Increase recognition by giving your company a “face”
- Describe the mission and vision of the business
- Ensure expansion and development
One must carefully and cautiously construct their identity if they want to enjoy such advantages. This can be accomplished in a step-by-step manner.
This outlines what you hope your business will become in the future. It ought to be aspirational and motivating. The ideal length for this statement is one sentence.
This outlines the organization’s goal. It should be clear, concise, and simple to understand. The company’s mission statement ought to inspire both customers and staff.
This outlines the feelings you want your customers to experience but may not express. It ideally encapsulates the essence of the business in one word or phrase. ‘Finger lickin’ good,’ for instance, describes KFC.
The personality of a brand is comparable to that of a person. It explains how it acts, reacts, speaks, behaves, and thinks. For instance, Samsung is viewed as traditional, while Apple is viewed as fresh and fashionable.
The distinctiveness of the brand and how it helps the customers are described in a value proposition. It must explain how a brand differs from its rivals and how every one of its goods and services caters to a customer in a unique way.
An entity must be conscious of its traits in order to perform a SWOT analysis on itself. SWOT refers to:
Strengths: Elements of your company that provide you with an advantage over your rivals
Characteristics that are detrimental to your business are called weaknesses.
Opportunities include shifts and developments in your sector that are favorable for your company.
Threats: Aspects of your industry or environment that could negatively impact your business
Once you are familiar with the aforementioned fundamentals, you may create and maintain a brand name that will serve as your identity.
Protection: Register trademark to protect your brand identity. You can even lose the right to use it if you don’t spend millions protecting it in the future. Simply registering your brand name with the government constitutes a trademark. Brand name protection is governed by the trademark ministry. One can contact companies that can assist you or engage an intellectual property rights attorney to assist with the filing of a trademark application.
Name availability search
Checking the availability of shortlisted names: The following steps can be taken to see if a company name is already taken:
- The website of the MCA makes it easy to check this.
- You can also submit Form INC-1 and a Rs. 500 fee at any ROC office to inquire about availability.
Reserving a name: The best choice for anyone wishing to reserve a potential company or update a current company is to apply for a reservation utilizing the Reserve Unique Name (RUN) program. After that, this application will be handled by the Central Registration Center (CRC).
Validity of the name reservation form: The authorized name will be reserved for 20 days, starting on the day of approval. The name will expire if the applicant does not file the application for incorporation within that time range.
Finalizing the name
- Executing a trademark search: To ensure that the applicant’s trademark does not already exist under another registered entity, it is crucial to conduct a trademark search.
- By supplying the word “mark” and the class that the investigation is being done under, a trademark search can be done.
- Choosing a trademark to represent a company is an important step. Make sure the trademark is distinctive. Avoid using names or symbols that can evoke objections and that are not forbidden marks.
- Trademark registration is not required in India; however, those that are protected by the Trademarks Act also benefit from those protections.
Choosing a unique and memorable name: The name must have originality, imagination, and distinctiveness. If your firm has a descriptive name, it should briefly define it and list its benefits. Making a decision on a name for your business is now much easier and more comfortable. Once you’ve decided on a name, the MCA will ask you to provide a one- or two-sentence explanation of its significance and primary goal. If you are registering your business under the MCA, you may offer up to six names in that sequence.
The following is a summary of the elements to take into account in Chennai when selecting a name for your OPC:
Block your domain name
- Prohibited words and phrases
- Trademark registration
Name availability search
Checking availability of shortlisted names
Reserving a name
Validity of the name reservation form
Finalizing the name
Conducting a trademark search
Choosing a unique and memorable name
The significance of adhering to legal requirements
For firms incorporated in India, the MCA has released standards for company names. A company’s or LLP’s name is the most important component of its identification since it effectively communicates both its distinctive brand and the nature of its commercial activity. Therefore, reserving a name for the company or LLP is thought to be the most important duty to finish before submitting an application for the company’s incorporation.
For this, applicants must have a clear understanding of the requirements for company names and the steps involved in reserving a name for a company or an LLP. This blog’s goal is to present the MCA’s name approval standards, which are mandatory to follow while reserving a company name.
A list of unacceptable company names!
|1||A name that contains profane, offensive, and obscene terms|
|2||A name that breaches Section 3 of the Names and Emblems Act of 1956 or any other requirement of that act|
|3||A name that evokes the sponsorship of the central and state governments|
|4||A name that is identical to, confusingly similar to, or misleadingly reflective of the name of an existing company or LLP|
|5||A name that includes phrases listed as “undesirable” in Company Incorporation Rules, 2009 Rule 8|
|6||A name that infringes Section 4 or another Trademark Act, 1999 requirement|
|Note: The following requirements are additionally necessary before naming a company:
· The company name should accurately describe its line of work, particularly if it engages in financial operations like lending, investing, leasing, etc.
· The name of a new company shall be deemed invalid if the only distinction between the names of an existing company and a new company is the addition of a place name.
· If a company has been disqualified under Section 560 of the Companies Act of 1956, its name is ineligible for use for 20 years following the disqualification date.
Benefits of choosing the right name for your OPC
Choosing one person company name is a crucial step in launching a new business. You should spend some time making sure your name is perfect the first time because it will help define the image of your company.
Your startup’s success might be significantly impacted by choosing the right name. The improper name can create insurmountable financial and legal obstacles in addition to failing to connect with customers. In contrast, a strong, memorable name can be quite beneficial to your marketing and branding initiatives.
Here are some advantages to consider while choosing the best name for your new business for the first time:
Whatever industry you are in, you might want to pick a name that accurately describes what your company does.
The Modern Bathroom Company Ltd. or JLT Architects Ltd. are just a couple examples of names that may be used to describe what your business does.
Maybe the location of your firm should be mentioned in the name.
It is important to keep in mind that even if you choose to use brand names for your company rather than the actual name of the corporation, you will still need to use your registered name for legal documents and billing.
You might want to use a name that doesn’t immediately make sense but still conveys the impression you want to make. Many of the best-known businesses and brands in the world have names that have little to do with the goods or services they offer, such as Apple and Amazon.
Many well-known companies employ strong imagery to sell their goods, such as the stunning Orange (mobile phone) branding from the 1990s onward—up until it was merged with “EE.”
Instead of choosing a specific name, you can think about selecting a generic one in case your company decides to change its focus in the future.
You should avoid choosing a pretentious or overly “new media” company name if you want to seek funding at some point, even if your business plan is flawless and all of your numbers add up.
We advise selecting your company name and domain name at the same time since having both types of identity secured is advantageous for obvious reasons and to stop rivals from acquiring your domain names in the future. If at all possible, you should try to get “similar” domain names as well as the.co.uk and.com versions of your company name to be extra secure.
Keep it legal
There are some limitations on the names you can use for your business, so be aware of them. Companies House keeps a list of “sensitive” phrases and expressions that you should avoid using in addition to trademarked names (like “Microsoft”).
To ensure that your OPC complies with all legal requirements and compliance guidelines for a successful name registration in Chennai, you can always contact Chennai-based Kanakkupillai.
The main justification for this is that Govche India Pvt. Ltd.’s web portal, Kanakkupillai.com, is dedicated to becoming your trusted partner throughout your complete business journey. Their primary goals are to advise you of your legal requirements, ensure compliance, and offer help throughout the life of your organization. They accomplish this by offering sound advice at fair prices.
Based on our discussion thus far, we are convinced that this blog post will be beneficial to any curious readers who wish to understand the legal requirements and procedures to be followed for an OPC name registration in Chennai.
FAQ on One Person Company Registration in India
Restrictions in OPC is they cannot carry out Non-Banking Financial Investment activities, including the investments in securities of anybody corporates. It cannot be converted to a company with charitable objects mentioned under Section 8 of the Companies Act, 2013
The Conditions in formation of OPC is only natural persons who are Indian citizens and residents are eligible to form a one-person company in India. The same condition applies to nominees of OPCs. Further, such a natural person cannot be a member or nominee of more than one OPC at any point in time.
Registration is compulsory for one person company according to Section 2 (62) of the Company's Act 2013, a company can be formed with just 1 director and 1 member. One Person Company registration in India is a type of entity where there are lesser compliances requirements than that of a Private Limited Company.
Employees of one-person company (OPC) is a type of company where there is only a single member. This type of company is relatively new in India, introduced by the Companies Act of 2013. OPCs are popular because they offer many benefits of traditional companies, but with simpler regulations and compliance requirements.
OPC do not allow who are not Indian citizen. He or she cannot be a nominee or shareholder of more than one OPC. And lastly, they should not be minors.
Minimum capital for OPC can be started with a minimum authorised capital of Rs. 1 lakh. There is no mandatory requirement for a minimum paid up capital.
OPC can have 2 directors as per the companies act, 2013, One Person Company (OPC) amendment has been introduced which states that a private company must require 2 directors and members while there must be 3 directors and 7 members in the public company.
OPC have limited liability amongst the several advantages an OPC has to offer, one striking benefit it renders is the limited liability to the shareholder. An OPC is a separate legal entity and therefore, the liabilities of the company are not shoved on the face of the shareholder.
OPC pay salary to Director, any remuneration paid to the director will be allowed as a deduction under income tax law, unlike proprietorship.
OPC own property, sale, purchase and own the property like individual. Contractual Rights: OPC, being a legal entity different from its members, can enter into contracts for the conduct of the business in its own name.