The partners and consumers as well as competitors refer the LLP by its name. Here, name plays a very important role in creating and establishing the significance of its main object in the Market. LLP being a separate legal entity, its identity is very different from its partners and it holds a distinct position in its own name. A name with some uniqueness and relation with major activities will always assist you with a benefit of establishing a very sound position in the mind of consumers and opponents. Therefore, for easy understanding a name should made up of three components i.e. 1. Your brand; 2. Main business activity; 3. Constitution.
Choosing name is a crucial part before starting LLP registration. Here know what aspects are to be entertained while choosing the name of the LLP!
Formulation of Name:
As we have talked above, the name of the LLP consist mainly 3 parts which can be explained below:
First Part helps the LLP to get the distinctive identity apart from other players in the market. This part can be a coined word or an invented word with the mixture of two or more of such words which can help to reflect the characteristic of the Services or quality of goods to be provided by LLP or any such terms which are usually used in the industry however unique in nature. As you never know, when your LLP name will become a brand and will be recognized by the unique word chosen as prefix in name. We can see various examples in the corporate world like Reliance, TATA, Larsen & Toubro (L&T) etc. have become brand in their own market by choosing such words which reflect quality, combination or characteristics of Goods and services.
Second part of the name helps consumers to relate with the field of operations. Consumers can approach the LLP by easily identifying the activities of the LLP by its name, which helps to indirectly promote the activities of the LLP.
The third part is the statutory requirement. The LLP Act, 2008 requires the entities to add the word “LLP” at the end of the name, which reflects that the entity is registered with the MCA under the LLP Act, 2008. This suffix is used to make third parties and contracting parties to be aware about the constitution of the organisation and liability of Partners. Further, the LLP cannot use suffix like “Private Limited Company”, “Private Company”, “Company”, “Public Company” or similar words.
Consider following factors before choosing the name for LLP:
- Think wisely while choosing your name of the LLP keeping in mind that every business you incorporate with a vision of long term growth.
- Easy to spell and remember
- Short & simple
- Unique: One can use prefix to make the name distinct from others
- Meaning: The name should be such that it helps people to connect with the LLP and its branding and help to establish a Brand and Trademark.
- The name should not be such that it is offensive to any religion, caste, race, community, group, society etc.
- It should not be opposed to public policy.
- It should not include any word that can lead to the impression that the entity is having any connection or association with Local/ State/ Central Government.
- The name should not be similar with any existing company/ LLP and also with any Trademark. However, if you are willing to reserve same name, you can apply the same with the consent of owner by submission of NOC.
- Not to include any word, prohibited by the Government or any under any law prevailing in India.
- Always try to provide maximum six names to your professional to seek the best advice on choosing the name for your LLP.
- Requisite of Approval: Names which include words such as ‘Finance’, ‘Bank’, ‘Insurance’, ‘Mutual Fund’, etc., the in-principle approval of concerned Regulatory such as SEBI, RBI, IRDA, etc. is required to be submitted along with the name approval application.
You may check the availability of the name at the online portal of MCA at http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do.
For the purpose of reserving the name, applicant needs to make an application in the prescribed form, through his professional expert in this field i.e. a Company Secretary or a Chartered Accountant. In this application, applicant can submit maximum 6 names in order of preference. After due verification, the Registrar may approve any of the name applied by the applicant for the LLP Registration.
Once the name application is approved by the Registrar, the name of LLP will be reserved by the Ministry for a period of 90 days, during which the procedure for incorporation and online registration of LLP shall be done, failing to which the name reserved for the applicant will be withdrawn and the applicant is required to make fresh Name Approval Application with payment of requisite fees to Government.