People often confuse the business name with the brand name. For instance, Paytm is a brand name while its actual business name is One97 Communications Limited. You can use any domain name for your business website or a different name for branding using a trademark registration. But your company name should be unique and not conflict with any existing business name in India. This is why it is important to visit MCA and check company name.
Remember, starting a company involves a step-by-step process. And the first step is to register a company name. The name plays a vital role in the current scenario as a good name in the market will create goodwill, which can attract consumers.
Hence, there is a chain starting with the name and ending with sales.
Now the question arises how to choose the company name during the registration of a private limited company.
Key factors to consider while choosing a company name
- A name must not resemble with the name of an existing company or LLP
- The use of the word “A” or “THE” will not be considered as a unique name
- Usage of singular or plural form of words will not be a new name
- The Phonetically similar name will not be a unique name
- Prohibited names under the Emblems and Names Act
- Name registered/applied for registration under the Trademark Act
- Offensive words
- Using words related to finance, investment, securities, etc. if the business activity is not such
- Any other name as prohibited under the law
Before you narrow down to a particular name, one must check if company name is available on MCA to avoid any rejection.
Process to check availability of name of the company
You must make sure that you check the name on the MCA portal and the Trademark portal.
- To check the name on MCA, open the tab CHECK COMPANY NAME from the website of MCA.
- Enter the name of the company and your main business activity in activity type. E.g., for the food making business, enter “food” or “restaurant” in the activity type. It is not mandatory to enter business activity, but it shows precise results.
- On clicking search, it will show all the results with a similar name while searching for company name availability. If the name is available, it will show an error as “Entered Company/LLP name does not exist.”
- One should check the name by entering only the first or first two words.
- As per rules, the name must not be like a trademark, except a trademark owner provides NOC to use such a name. Hence the name must also be checked on the trademark portal.
- One must know the trademark class for goods and services to check the availability under the trademark.
- Open trademark search from the trademark portal and enter the name and class.
- One must check by selecting “phonetic” also as MCA also compares phonetically similar names.
One can apply the name with MCA if the title seems available. If the name is most unique, then one can directly use the name within the form of incorporation of the company. But if the chances of availability of name are less, then the separate name application can be filed. In a name application, one can apply for a maximum of two characters. If MCA does not approve any of the names, the applicant will get one more chance to use the other two names.
Checking the availability of the name is one of the important steps in the process of private limited company registration. One can easily check the name of the company following the above steps. But it is important to check it through professionals. MCA has the final authority to approve or reject the name.
*Last updated on 03/08/2021