Advisory for Stakeholders Name Reservation and Incorporation
Advisory for Stakeholders Name Reservation and Incorporation of Company & LLP
1. Basic Principles for Selecting a Company / LLP Name
| Requirement | Explanation |
|---|---|
| Distinctiveness | The proposed name must be unique and clearly distinguishable from existing companies, LLPs, or well-known entities. |
| Phonetic similarity | Names that sound similar to existing entities may be rejected. |
| Brand confusion | Names resembling well-known brands or organizations may not be allowed. |
| Minor changes not sufficient | Differences only in spelling, plural form, tense, or word order usually do not make a name unique. |
2. Examples of Name Rejection Due to Similarity
| Existing Name | Proposed Name | Reason |
|---|---|---|
| Avon Engineering Pvt Ltd | Avon Engineers Pvt Ltd | Minor variation |
| SQYD Construction and Designing LLP | SQYD Construction and Design LLP | Similar wording |
| Progressive Jewels LLP | Progressive Jewellers Pvt Ltd | Plural variation |
| AI-Connect (OPC) Pvt Ltd | AIConnectz Pvt Ltd | Phonetic similarity |
| Shreeji Electricals Ltd | Shreeji Electronics Pvt Ltd | Similar business identity |
| Met Technologies Pvt Ltd | Meet Technologies Pvt Ltd | Similar pronunciation |
| Zencare Pharmaceuticals LLP | Carezen Pharmaceuticals Pvt Ltd | Reversed words |
| Veera Lifesciences Pvt Ltd | Vira Lifesciences Pvt Ltd | Similar spelling |
3. Cases Where NOC Does Not Ensure Approval
Even if an existing company provides a No-Objection Certificate (NOC), approval may still be denied if the names are too similar.
| Existing Name | Proposed Name | Result |
|---|---|---|
| Advik Constructions LLP | Adhvik Constructions LLP | Rejected |
| Growth Exponential India Pvt Ltd | Growthexponential LLP | Rejected |
| Vedic Vidya Foundation | Vaidik Vidhya Pvt Ltd | Rejected |
| Mystic Muse LLP | Mystic Muse LLP | Rejected |
| Royal Foods Pvt Ltd | Royale Foods Pvt Ltd | Rejected |
4. Time Restrictions on Reusing Names
| Rule | Situation | Restriction Period |
|---|---|---|
| Companies (Incorporation) Rules | Company dissolved by liquidation | 2 Years |
| Companies (Incorporation) Rules | Company struck off | 20 Years |
| LLP Rules | LLP struck off | 5 Years |
| LLP Rules | LLP in liquidation | 5 Years |
| Companies Rules | Old company name after change | 3 Years |
| LLP Rules | Foreign LLP reserving name | 3 Years (renewable) |
5. Avoid Use of Well-Known Abbreviations
| Example | Reason |
|---|---|
| NHDC | Known abbreviation of National Handloom Development Corporation |
| BRICS | International intergovernmental organization |
| Similar widely known abbreviations | May imply unauthorized association |
6. Words Requiring Regulatory Approval
| Word Used | Approval Required From |
|---|---|
| Bank | Banking regulator |
| Insurance | Insurance regulatory authority |
| Chartered Accountants | Institute of Chartered Accountants |
| Company Secretaries | Institute of Company Secretaries |
| Cost Accountants | Institute of Cost Accountants |
| Architect | Council of Architecture |
7. Words Requiring Declaration (Regulatory Activities)
| Word in Name | Requirement |
|---|---|
| Stock Exchange | Declaration to obtain regulator approval |
| Venture Capital | Declaration required |
| Asset Management | Declaration required |
| Mutual Fund | Declaration required |
8. Use of Foreign Country or City Names
| Example | Requirement |
|---|---|
| Italy / Italian | Proof of collaboration with foreign entity |
| Shanghai | MOU or business relationship evidence |
| Any foreign country/city reference | Documentary proof required |
9. Special Naming Rules for Section 8 Companies
| Acceptable Words | Purpose |
|---|---|
| Foundation | Indicates non-profit nature |
| Association | Non-profit structure |
| Federation | Collective organization |
| Council | Institutional body |
| Forum | Non-profit entity |
| Institute / Organisation / Mission / Centre | Charitable or public purpose |
10. Words That Cannot Be Used in Company Names
| Restricted Words | Reason |
|---|---|
| LLP | Different legal structure |
| Partnership | Indicates partnership firm |
| Trust | Separate entity type |
| Society | Registered under different law |
| Proprietor | Individual ownership |
| HUF | Hindu Undivided Family |
| Firm | Partnership implication |
| Inc., PLC, GmbH, SA, AG etc. | Foreign company suffix |
| British India | Restricted expression |
| State | Reserved for government companies |
11. Finance-Related Name and Object Consistency
| Proposed Name | Proposed Business Activity | Outcome |
|---|---|---|
| Finance-related name | Non-finance activity | Rejection |
| Non-finance name | Financial activity | Rejection |
| Finance-related name | Finance activity | Acceptable |
12. Trademark Verification Requirement
| Step | Explanation |
|---|---|
| Check trademark database | Ensure no identical mark exists |
| Match NIC code | Align business classification |
| Check trademark class | Verify activity category |
| Obtain NOC if required | From trademark owner |
Example:
| Proposed Name | NIC Code | Trademark Class | Action |
|---|---|---|---|
| Bharti Projects Pvt Ltd | 43309 | Class 37 | NOC required from trademark owner |
13. NIC Code Selection Guidelines
| Rule | Explanation |
|---|---|
| First NIC code is primary activity | It becomes part of CIN |
| Objects must match NIC | Avoid inconsistency |
| NIC code 84 caution | Activities usually reserved for government |
14. Registered Office Documentation Requirements
| Requirement | Details |
|---|---|
| Utility bill | Not older than 2 months |
| NOC from property owner | Required if premises owned by another person |
| Lease / rent agreement | Required for rented premises |
| Co-working space | Agreement between operator and property owner required |
| Language translation | Required if document is in vernacular language |
| Address match | Must match SPICe+ form details |
| Rural address | Mention C/o owner if full address not available |
15. Capital Structure Consistency (Company Incorporation)
| Requirement | Explanation |
|---|---|
| Authorized capital | Must match across all forms |
| Subscribed capital | Must match subscriber sheet |
| Number of shares | Must remain consistent |
| Nominal value | Must be correctly mentioned |
16. DIN Application Rules
| Situation | Outcome |
|---|---|
| DIN applied through SPICe+ | Processed along with incorporation |
| SPICe+ rejected | DIN application automatically rejected |
17. Restrictions for Section 8 Companies
| Restriction | Explanation |
|---|---|
| Micro-finance activities | Restricted |
| Money market activities | Not allowed |
| Investment activities | Considered profit-oriented |
18. Special Object-Related Requirements
| Business Object | Requirement |
|---|---|
| Registered Valuer services | Directors must be registered valuers |
| MLM / Chain marketing | Not allowed |
| Money circulation schemes | Prohibited |
19. OPC (One Person Company) Restrictions
| Restriction | Explanation |
|---|---|
| NBFC activities | Not permitted |
| Investment in securities | Not permitted |
| Multiple shareholders | Not permitted |
20. Compliance and Documentation Rules
| Requirement | Explanation |
|---|---|
| DIN must be approved | Only valid DIN accepted |
| PAN undertaking | Required for foreign nationals without PAN |
| Authentic signatures | Copy-paste signatures prohibited |
| False documents | May attract penalties under Companies Act |
21. LLP Incorporation Requirements
| Requirement | Explanation |
|---|---|
| Form 9 | Consent from designated partners |
| Subscriber sheet | Must be signed and witnessed |
| Foreign signatures | Must be apostilled or consularized |
| Shareholding verification | Required for company-to-LLP conversion |
| Partner contribution valuation | Required if contribution includes assets/services |
22. LLP Conversion Rules
| Conversion Type | Required Documents |
|---|---|
| Company to LLP | Verify shareholding consistency |
| Partnership firm to LLP | Submit initial and latest partnership deed |
| Contribution in assets/services | Valuation certificate required |
23. Change of Name of Existing Company / LLP
| Requirement | Explanation |
|---|---|
| Board resolution | Must be on company letterhead |
| Partner consent (LLP) | Signed by all partners |
| RUN / RUN-LLP form | Required for name approval |
Example:
| Old Name | New Name | Treatment |
|---|---|---|
| Indi-Tech Pvt Ltd | Inditech Pvt Ltd | Treated as name change |
24. Subscriber / Director Documentation Scenarios
| Scenario | Person Type | Location of Signing | Requirement |
|---|---|---|---|
| Indian in India | India | India | Apostille not required |
| Indian abroad | Foreign country | Foreign country | Apostille required |
| Indian abroad signing in India | India | India | Business visa / OCI proof |
| Foreigner abroad | Foreign country | Foreign country | Apostille required |
| Foreigner signing in India | India | India | Visa and passport proof |
(13 scenarios defined depending on nationality, residence, and signing location.)
25. Important Laws Governing Name Reservation & Incorporation
| Law | Scope |
|---|---|
| Companies Act 2013 | Company incorporation rules |
| Companies (Incorporation) Rules 2014 | Name approval process |
| LLP Act 2008 | LLP formation |
| LLP Rules 2009 | LLP name reservation |
| Trade Marks Act 1999 | Trademark protection |
| Emblems and Names Act 1950 | Restriction on certain names |
| Electoral Trust Scheme 2013 | Electoral trust regulation |
