Choosing a Business Name

How to Choose a Name of a Company?

Name of a company is something which needs to be unique, desirable and one of its kinds to make it stand out from the rest. Hence, there are certain guidelines for choosing a name for your Private Limited Company which is also applicable for One person Company and Limited Company. The Companies Act 2013, defines certain guidelines for selecting the name of the company.

What is in a Company Name?

Well, a company name need not be a brand name but it is a name that is the base of the brands that the firm manufactures. Do you know what is Jasper InfoTech Private Limited? But you know Snapdeal. So, this denotes that the company name can be different from the brand names which makes it much easier to decide the company name for Private Limited. But, there are definitely some conditions that need to be followed, to start with the Don'ts that are to be taken care of:

• Do not choose names that are identical or similar to other existing names.
• Do not choose an undesirable & offensive name.
• Make sure that the name is not Generic.
• The name should not contain another country's name, and also, the word "state" is not permitted.
• Do not use the word "British India" as it is not approved by MCA.
• The names that implies patronage are not allowed as well.
• Do not use any name that is associated with the Embassy or consulate or foreign government.
• Do not use short-forms or Abbreviations in the name.

What to consider before selecting the name?

Firstly, you need to conduct a thorough research on the existing trademarks and then decide your name, remember that your Company name may not be your brand name, and the Rules are to be known to you: There is a preferred format in which the MCA wants you to name the company;

Unique Component + Descriptive name + Private Limited.

e.g. (Jasper) + (InfoTech) + (Private Limited)

What to consider before selecting the name?

Firstly, you need to conduct a thorough research on the existing trademarks and then decide your name, remember that your Company name may not be your brand name, and the Rules are to be known to you: There is a preferred format in which the MCA wants you to name the company;

Private Limited Company : Creative Name + Private Limited Company(Suffix)

One Person Company: Creative Name + OPC(Suffix)

Limited Liability Partnership: Unique Name + Descriptive Object + Limited.

e.g. (Tata) + (Motors) + (Limited)

The unique component needs to be creative, imaginative, and distinct in nature. The descriptive name defines your business in brief and gives perks of your work/business. It is much simpler now and convenient to decide a name for your company. Once you choose the name, MCA will ask for the significance and the main objective behind that name which is to be submitted in one or two sentences. However, you can suggest six names in order of preference for your enterprise if you are registering through INC-21 but in the case of the newer & faster process under INC-29, you can only suggest one name.

There are certain Words (in the Name) that have terms and conditions attached to them based on the Authorized Capital of the LLP:

• The Word 'Corporation' can only be used if the authorized capital is Rs. 5 Crore.
• If 'International, Globe, Universal, Continental, Inter-Continental, Asiatic, Asia' are the first name of the Company then the authorized capital must be Rs. 1 Crore. And if these are to be used within the name then the capital should be Rs. 50 Lakh.
• 'Industry/ Udyog' needs a capital of Rs. 1 crore.
• 'Hindustan, Bharat, India' being first word should have capital of about Rs. 10 Lakhs and if these are to be used within the name then it needs Rs. 5 Lakhs.
• 'Enterprises, Products, manufacturing, Business' these words needs a minimum authorized capital of Rs. 10 Lakhs.

Can I Change a Company Name?

Yes, you can change the Company Name, but there is a simple process attached to the name change & a prescribed fee needs to be deposited for the same. For more details on Company Name Change Click here https://www.quickcompany.in/company-name-change.