Changing the name of a pvt ltd company can be necessary for a number of reasons, including changing the objective of the business, changing the management, rebranding, etc. In the case of a private limited company, its name can be change company name at any time with approval from the shareholders as well as the Ministry of Corporate Affairs.
There is a lot to be said about choosing the right name for a business, but it is also the most difficult part of launching a business. This name will serve as the company’s primary calling card, and it will be printed everywhere associated with the company. Therefore, coming up with a name that makes a great first impression, is intriguing, and is easy to follow. The purpose of this article is to take a look at some of the regulations laid out by the Ministry of Corporate Affairs (MCA) regarding the naming of a Private Limited Company in India under the provisions laid down by it.
A Desirable Name Should Be Chosen
An undesirable name cannot be registered with a company, as per the Companies Act, 2013. In addition to being fully or nearly identical with an existing company name, a new proposal is considered undesirable if it resembles an existing company name, a name of a limited liability company or approved by the Registrar, or if it resembles a registered trademark or trademark application. In addition, names that violate the provisions of Emblems and Names and/or contain profanity or words or phrases meant to offend any section of the public are also prohibited.
A similarity or identicality of a name depends on the following rules: 1) Plural versions of a word do not differentiate one name from another. Therefore, City Hospital Private Limited will be considered similar to City Hospitals Private Limited in terms of the type, case, and spacing between letters of the name. This is because ii) changing the type, case, and spacing between letters in a name will still result in a similarity. Consequently, City Hospital Private Limited and CityHospital Private Limited or City Hospital Private Limited will be considered to be similar. The use of a different tense or number of the same word won’t also make the name unique. For example, Excellence Industries and Excellent Industries are both considered to be similar. Likewise, Three River Hospital will also be considered to be similar as well. In addition, a name that differs in phonetic spelling or combination from an existing name will not be easily distinguishable from the name that is already in existence. For example, if there is an existing J.K Industries, then J & K Industries and J n K Industries will not be permitted either. A name that already exists can not be made unique by adding words like New, Modern, Nav, Shri, Shree, Om, Jai, Sai, The, etc.
The proposed name may be permitted if it contains terms such as ‘insurance’, ‘bank’, ‘stock exchange’, ‘venture capital, ‘asset management, ‘mutual fund’, etc. The applicant must provide a declaration that the requirements mandated by the relevant regulators, such as IRDA, RBI, SEMA, etc., have been met. Moreover, the proposed name must be approved by the Central Government if it contains any words or expressions that can be interpreted as being connected to, or having patronage from, the Central Government, any State Government, or any local authority, corporation or body created under a law by the Central Government or a State Government.
Minimum capital requirement for certain names
The inclusion of certain keywords in the name will require the company to have a certain minimum authorized capital as follows: When Hindustan, India, Bharat appear in any part of the company’s name, a minimum authorization capital of Rs.5 lakhs is required. In order to use the words Enterprises, Products, Business, Manufacturing in any part of the company’s name, a minimum authorized capital of Rs.10 lakhs is required. Using the words Hindustan, India, and Bharat as the company name requires a minimum authorized capital of Rs.50 lakhs. A minimum capital of Rs. 50 lakhs is required if the company’s name contains words such as International, Global, Universal, Continental, Inter-Continental, Asiatic, Asia. It is necessary to have a minimum authorized capital of Rs. 50 lakhs if the first word of a company’s name is Hindustan, India, Bharat.