One of the primary and most important activities that a person is required to undertake when incorporating a company or a Limited Liability Partnership (LLP) in India is selecting a unique and valid name. A good business name not only quantifies your brand name, but it also has to comply with the legal standards according to the Companies Act, 2013, and the LLP Act, 2008. The Ministry of Corporate Affairs (MCA) has provided definite naming requirements that dissimilar to duplication, deception or mix ups with other established entities.
Basic Structure of a Company or LLP Name
A name that is acceptable usually entails three elements:
- Name part- the word or brand that is unique. Names are often called the distinctive word or brand
- Object part- that shows the business in terms of the nature of the business
- Part of the constitution – which shows the kind of entity
1. Name Part
The initial section must be totally different and not the same or misleading to any other existing organization, LLP, or registered trademark. The name should not contradict the identity of some other kind of business, not to mention one working in the same field. In case there is an existing company, say, ABC Traders Private Limited, another company cannot be registered with the name ABC Traders LLP in the same field.
In another industry, we may grant a similar brand name, but we should prevent conflicts in the future. The applicant is under an obligation to undertake a detailed name search and make sure that the intended name is not a mere derivative.
2. Object Part
The object part shows the activity or focus of the business. It is an obligatory element that determines what your company is. Typical object describers can be such: Technologies, Hospitality, Constructions, Garments, Electricals, Pharmaceuticals, Textiles, Foods, Travels, etc.
For example, the name of the ABC Textiles company is written as ABC Textiles Private Limited, indicating its focus on textiles. The lack of a suitable object word can either delay or deny the application.
3. Constitution Part
In this section, the legal form of the company is indicated:
- Private companies are represented as Private Limited or Pvt. Ltd.
- Limited or Ltd. in case of a public company
- LLP – Limited Liability Partnership
- OPC – One Person Company
This is a mandatory claim that has to be found at the end of the name.
Minimum Authorized Capital for Specific Words
Some terms can only be used in a company’s name if the business has the required minimum authorized capital:
| Word/Phrase | Minimum Authorized Capital |
| Corporation | ₹5 crore |
| International, Universal, Globe, Asia (as first word) | ₹1 crore |
| Industries / Udyog | ₹1 crore |
| Asia, Intercontinental, Globe, etc. (within name) | ₹50 lakhs |
| Hindustan, India, Bharat (as first word) | ₹50 lakhs |
| Exact words within the name | ₹5 lakhs |
| Enterprises, Businesses, Products, Manufacturing | ₹10 lakhs |
Important Company Naming Guidelines
When choosing the name of a company or LLP, the following rules have to be observed:
1. No Multiple Forms
Making use of a word that is already contained in a registered name in its plural form is unacceptable. For example, ABC Steels Pvt. Ltd. will not be accepted if there is already ABC Steel Pvt. Ltd.
2. No alteration of Case or Space
Variations in letter casing, punctuation or spacing (such as changing a letter, which might take the form of the letters ABC becoming A B C) are not valid variants.
2. No Change of Tense or Number
It is not permitted to use an alternative grammatical form of a word (e.g., Builder vs. Builders) in places where it coincides with a name.
3. Phonetic or Spelling Variations are not allowed
You are not allowed to use deliberately misspelled or phonetically spelled words of existing names. A case in point is the adoption of Xpress in place of Express.
4. Not Acceptable Domain extensions
The rules of MCA do not allow adding such extensions as web-based (.com, .in, or .org) to distinguish the names.
5. Location, or Title Additions need NOC
You cannot adopt names of places or titles such as Global, India, Hindustan, etc., unless they are authorized or substantiated by a No Objection Certificate (NOC) from the original name owner.
6. Distribution of Words is Not Permissible
The re-arrangement of words such as (e.g., “Traders and Manufacturers” vs. “Manufacturers and Traders”) does not establish a new identity.
Conclusion
The name is the initial identity of a company and must comply with legal norms, in addition to being creative and representative of the business. To make a fast registration, avoid rejection, and help prevent legal problems, always check the name at the MCA and trademark databases. The right and legal name builds brand credibility and facilitates the operation of business undertakings from the outset.
