Picking the right name for your new company is one of the most important steps when starting a business in India. Your company’s name is how people will recognize and remember your business, so it needs to be unique and comply with specific legal requirements. The government checks to make sure your chosen name doesn’t clash with existing companies or trademarks. Some words are not allowed or need special permission. To get your company name approved, you first need to search for existing names, prepare the necessary documents, such as digital signatures and director IDs, and then apply online through the MCA portal using the RUN form. After the name is approved, you can move ahead with registering your company.
In this guide, we will understand how to choose the name for your company, what documents and forms are required, and the process of company name approval in detail.
Why is Company Name Approval Important?
A company’s name is its primary identity and branding element in the marketplace. By its name, a company is known to the general public, and the Ministry of Corporate Affairs (MCA) requires name approval to ensure that the proposed name does not conflict with existing company names or violate any national regulations.
Laws Governing Company Name Approval
The legal framework governing company name approval in India is primarily derived from the Companies Act, 2013, and the Company (Incorporation) Rules, 2014. Additionally, the MCA issues guidelines from time to time to clarify naming conventions and restrictions. The proposed name must also comply with the Trade Marks Act, 1999, to avoid any trademark infringement issues.
What cannot be the Name of the Company?
Choosing a company name requires advanced preparation. You cannot choose a name that:
- Are identical to or similar to the names of existing companies or LLPs.
- Contain words prohibited under the Companies Act, 2013, The Emblems And Names (Prevention of Improper Use) Act, 1950, such as ‘National’, ‘Bank’, or ‘Government’ without approval.
- Violate trademark rights or intellectual property regulations.
- Are misleading, offensive, or inappropriate in any manner.
- Include words that imply a connection with a government or local authority without proper authorization.
Documents Required for Company Name Approval
To get a company name approved, the following documents are required:
- Digital Signature Certificate (DSC) of the proposed directors.
- Director Identification Number (DIN) of the proposed directors.
- PAN card and address proof of the directors.
- Proposed company name(s) with significance.
- Main business activity of the company.
- Signed declaration by the directors.
Forms Required
| Form Name | Purpose | Details |
| RUN (Reserve Unique Name) Form | To reserve a company name | The form allows submission of up to two proposed names via the MCA portal |
| SPICe+ (INC-32) Form | Incorporation of the company post name approval | Includes name approval, DIN allotment, PAN, TAN, and GST registration |
| INC-9 (Declaration by Subscribers and First Directors) | Declaration of compliance by subscribers and directors | Affirms adherence to the rules and regulations of the Companies Act, 2013 |
| DIR-12 (Part of SPICe+) | Appointment of directors during incorporation | Filed along with SPICe+ for director details |
Procedure for Company Name Approval
Follow the steps below to approve the name of your company:
Step 1: Conduct Preliminary Name Search
Before applying the name for your company, do a thorough company name search on the MCA portal and the IP India website to check if your proposed name is not already registered and doesn’t infringe on existing company or trademark names.
Step 2: Prepare Required Documents
Gather all necessary documents such as:
- Digital Signature Certificate (DSC) of the proposed directors
- Director Identification Number (DIN)
- PAN card and address proof of the directors
- Proposed company name(s) along with their significance
- Description of the main business activity
- A signed declaration from the directors
Step 3: File the RUN (Reserve Unique Name) Application
- Log in to the MCA portal and access the RUN service.
- Submit up to two preferred company names in order of priority.
- Upload the required documents.
- Pay the prescribed fee.
The system will automatically check the availability of the proposed names during submission.
Step 4: Wait for Name Approval or Rejection
- The Registrar of Companies (RoC) will review your application.
- If approved, a Name Approval Letter will be issued (valid for 20 days for new companies, 60 days for existing companies).
- If rejected, you will receive reasons for rejection and can reapply using an alternate name.
Step 5: Proceed with Incorporation
Once the name is approved:
- File the SPICe+ form (INC-32) through the MCA portal for company incorporation.
- Attach the approved name approval letter and other incorporation documents.
Step 6: Final Registration and Certificate of Incorporation
Upon successful verification, the RoC issues the Certificate of Incorporation (COI), which confirms the legal existence of your company.
Checklist for Smooth Company Name Approval
- Make sure that the proposed name is unique and does not resemble any existing company or trademark.
- Cross-check against the MCA database and the IP India website.
- Avoid prohibited or misleading words that require government approval.
- Ensure all necessary documents are prepared and verified before filing the RUN form.
- Double-check each and everything in the form, including spellings.
- Keep alternative names ready in case the preferred name is not available.
Conclusion
Obtaining a new company name approval in India requires careful planning and strict adherence to the law, as well as the guidelines laid out by the Companies Act, 2013, and the Ministry of Corporate Affairs (MCA). Make sure that the proposed name is new and does not violate the laws of the land. Following the prescribed procedure meticulously can help secure approval without unnecessary delays. With proper preparation and a systematic approach, entrepreneurs can secure the desired name and proceed confidently with the incorporation process.
