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How to Choose Right Name for One Person Company in Chennai

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Determining the business’s name 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 an OPC (one-person company).

The MCA has established a regulatory framework that must be considered 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 preceding, we review the steps and regulations to be followed while selecting a suitable name for an OPC in this blog to benefit interested readers.

The significance of naming your OPC correctly

To distinguish your company from your rivals, stand out amid the crowd, and win over investors, it is crucial to have a distinctive company name. The trademark’s major worth is built upon the foundation of the 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 significantly impacts 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.

First impression

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.

Sticky names

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  

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 entire brand’s identity, not just the business’s name.

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 to use the words bank, exchange, and stock exchange.
  • Trademark: Unless the consent of the owner of a registered trademark or the applicant for trademark registration is provided with the name approval application, the proposed company name cannot infringe on a registered trademark or the subject of a trademark application.
  • Patronage: The proposed company name cannot imply affiliation, support, or admiration for a national hero, someone who has been held in high regard or 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.

Legal-related factors

  • Prohibited words and phrases: The name shouldn’t contain 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 or nearly identical to those 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 imply patronage are not permitted.
  • Avoid using names connected to an embassy, consulate, or foreign government.
  • Avoid using abbreviations or shorthand in the name.
  • Trademark registration: Before choosing your name, you must thoroughly investigate the registered trademarks.

Brand-related factors

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 extended. It ought to be simple to remember, say, and identify.

Brand personality: “Brand” refers to an essential component of your identity. It describes your identity and your nature or line of work. A brand 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. According to Jeff Bezos, the CEO and creator of Amazon, branding is what people say about you while you’re not in the room.

Steps to follow while choosing the right name for your OPC in Chennai

Brainstorming

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 one’s identity to enjoy such advantages. This can be accomplished in a step-by-step manner.

Vision statement

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.

Mission statement

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.

Essence

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.

Personality

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.

Value proposition

The brand’s distinctiveness 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 uniquely caters to customers.

SWOT analysis

An entity must be conscious of its traits to perform a SWOT analysis. 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 favourable shifts and developments in your sector for your company.

Threats: Aspects of your industry or environment that could negatively impact your business

Once familiar with the abovementioned fundamentals, you may create and maintain a brand name that will serve as your identity.

Protection: Register a 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. The trademark ministry governs brand name protection. One can contact companies that can assist you or engage an intellectual property rights attorney to assist with filing 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 MCA website 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 apply for incorporation within that time.

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.
  • A trademark search can be done by supplying the word “mark” and the class under which the investigation is being 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 the Trademarks Act protects also benefit from those protections.

Choosing a unique and memorable name must have originality, imagination, and distinctiveness. If your firm has a descriptive name, it should briefly define it and list its benefits. Deciding on a name for your business is 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 register your business under the MCA, you may offer up to six names in that sequence.

Conclusion

The following is a summary of the elements to take into account in Chennai when selecting a name for your OPC:

Uniqueness

Avoid abbreviations

Trademark

Patronage

Block your domain name

Regulatory approval

Legal-related factors

  • Prohibited words and phrases
  • Trademark registration

Brand-related factors

Brand identity

Brand personality

Brainstorming

Vision statement

Mission statement

Essence

Personality

Value Proposition

SWOT analysis

Protection

Name availability search

Checking the 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

The MCA has released standards for company names for firms incorporated in India. A company’s or LLP’s name is the most important component of its identification since it effectively communicates its distinctive brand and the nature of its commercial activity. Therefore, reserving a name for the company or LLP is considered the most important duty to finish before applying for incorporation.

For this, applicants must clearly understand the requirements for company names and the steps involved in reserving a name for a company or an LLP. This blog aims to present the MCA’s name approval standards, which are mandatory to follow while reserving a company name.

A list of unacceptable company names!

S. No. List
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’s company name is crucial 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 benefit your marketing and branding initiatives.

Here are some advantages to consider while choosing the best name for your new business for the first time:

Self-explanatory

Whatever industry you are in, you might want to pick a name that accurately describes what your company does.

Modern Bathroom Company Ltd. or JLT Architects Ltd. are just a couple of 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 remember 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.

Clever branding

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 worldwide 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 until it was merged with “EE.”

Future-proofing

Instead of choosing a specific name, you can consider selecting a generic one if your company changes its focus.

Potential investors

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.

Domain names

We advise selecting your company name and domain name simultaneously since securing both types of identity is advantageous for obvious reasons and to stop rivals from acquiring your domain names in the future. If possible, you should try to get “similar” domain names and 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 is that Govche India Pvt. Ltd.’s web portal, Kanakkupillai.com, is dedicated to becoming your trusted partner throughout your business. 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 this blog post will benefit any curious readers who wish to understand the legal requirements and procedures for an OPC registration in Chennai.

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