Selecting the appropriate name for your business is the first and foremost step involved in setting up a business venture in India. The company name needs to be unique, relevant, and must comply with the naming guidelines prescribed under the Companies Act, 2013.
It is essential to ensure that the proposed name of your company is unique and not already in use by any other company or LLP before applying for the incorporation of your business firm.
The Ministry of Corporate Affairs (MCA) offers an online service via MCA portal where you can check the availability of similar names among existing companies or LLPs.
In this blog post, we will cover the process of checking company name availability on MCA portal, naming conventions, grounds for rejection, and some tips for selecting the company name.
What is Company Name Availability?
The company name availability refers to the assessment of the availability of the name chosen by the promoter for their proposed company. Whether the name already exists or is similar to any existing company, LLP, Trademark, etc. For instance, in case ABC Technologies Private Limited is an existing company, the registration of the name such as ABC Technology Private Limited would give rise to the issue of similarity.
Hence, it is necessary for the promoter to conduct a proper name search before making an application for the incorporation of the company.
It is essential to keep in mind that the non-availability of an exact match on the MCA Portal doesn’t ensure the registration of the name.
Why is it Important to Check Company Name Availability?
Checking name availability before incorporation can save time, money, and unnecessary paperwork.
Some important reasons include:
- It helps identify existing companies with similar names.
- It reduces the possibility of name rejection by MCA.
- It helps promoters select a more unique name.
- It allows you to identify similar LLP names.
- It helps avoid potential trademark conflicts.
- It makes the incorporation process smoother.
A proper name search should therefore be done before submitting the application for reservation of a company name.
How to Check Company Name Availability on MCA Portal
The MCA Portal provides an online search facility through which users can search for existing companies and LLPs.
The basic process is:
Visit MCA Portal → Search Existing Company/LLP Name → Enter Proposed Name → Review Search Results → Check Similar Names
You should not rely only on an exact-name search. It is advisable to search different combinations and keywords from your proposed name.
Step-by-Step Process to Search a Company Name
Step 1: Visit the MCA Website
Go to the official Ministry of Corporate Affairs (MCA) website.
Open the MCA Portal and look for the option to search for existing companies and LLPs.
Step 2: Open the Company/LLP Name Search Facility
Use the MCA search facility for checking existing company and LLP names.
Enter the main keyword or proposed name that you are considering.
For example, if your proposed name is:
Green Leaf Foods Private Limited
you can search:
- GreenLeaf Foods
- GreenLeaf
- Green Leaf Foods
- GreenLeaf Food
- Green Leaf
This will help you identify names that may be considered similar.
Step 3: Review the Search Results
The search results may show companies or LLPs having similar names.
Check:
- Name of the company
- Name of the LLP
- CIN/LLPIN
- Company status
- Main business activity, wherever available
Pay particular attention to companies operating in the same or similar business.
Step 4: Search Different Variations
Do not search only the complete proposed name.
Try different combinations of the important words in your proposed name.
For example, if your proposed name is:
Sunrise Digital Solutions Private Limited
you can search:
- Sunrise Digital
- Sunrise Solutions
- Digital Solutions
- Sunrise
- Sun Rise Digital
- Sunrise Technology
This gives you a better understanding of whether similar names already exist.
How to Check Similar Company or LLP Names
One of the most important points is that MCA does not consider only exact matches.
A proposed name may be rejected if it is considered too similar to an existing company or LLP.
For example:
ABC Healthcare Private Limited
and
ABC Health Care Private Limited
may be considered similar because the main words and overall name are substantially the same.
Similarly, merely adding words such as:
- India
- International
- Global
- New
- Modern
- Enterprises
- Group
may not always make a name sufficiently different.
Therefore, promoters should focus on creating a distinctive and meaningful name rather than simply modifying an existing name.
Important Rules for Selecting a Company Name
The name of a company should comply with the provisions of the Companies Act, 2013 and applicable rules.
Generally, a proposed name should:
Be Unique
The name should not be identical or too similar to an existing company or LLP.
Not Violate a Registered Trademark
The proposed name should be checked against relevant trademark records as well.
Not Be Misleading
The name should not give a false impression about the nature or activities of the company.
Reflect the Company’s Business
Where applicable, the name should be appropriate for the proposed objects and business activities.
Avoid Restricted Words
Certain words may require additional approvals or may be subject to specific conditions.
For example, words suggesting government connection, banking, insurance, stock exchange, or certain regulated activities may require additional compliance.
Reasons Why MCA May Reject a Proposed Name
Even after checking the MCA Portal, the name application can be rejected.
Common reasons include:
- The name is identical to an existing company.
- The name is too similar to an existing company or LLP.
- The name conflicts with an existing trademark.
- The proposed name is considered undesirable.
- The name does not match the proposed business activity.
- The name contains restricted words without the required approval.
- The name is misleading or likely to cause confusion.
- The name does not satisfy the applicable naming rules.
Therefore, an MCA name search should be treated as a preliminary check, not as final approval.
Tips for Choosing a Unique Company Name
Here are some practical tips that can help you select a better company name:
Use a Distinctive Word
Try to create a name with a unique brand element rather than using only generic words.
Check MCA Records
Search the proposed name and its important keywords on the MCA Portal.
Check Trademark Availability
A company name may be available on MCA but still conflict with a registered trademark.
Therefore, trademark availability should also be checked.
Avoid Minor Changes
Do not assume that adding words such as “India”, “Global”, or “International” will automatically make your name different.
Keep the Name Relevant
The name should have a reasonable connection with the company’s proposed business activities.
Keep Alternative Names Ready
It is advisable to keep two or more alternative names in case the first choice is rejected.
What to Do After Checking Name Availability?
Once you have conducted the preliminary search and selected a suitable name, the next step is to apply for reservation of the name through the applicable MCA incorporation process.
For a new company, name reservation is generally made through the incorporation process in SPICe+.
Once the name is approved, the promoters can proceed with the remaining incorporation formalities, subject to applicable requirements.
Remember that name availability on the search facility does not itself amount to name approval. The final decision regarding approval of the proposed name rests with the Registrar of Companies/MCA.
Frequently Asked Questions (FAQs)
Q1. Can I check company name availability on the MCA Portal?
Yes. You can use the MCA Portal’s search facility to check existing company and LLP names and identify names that may be similar to your proposed name.
Q2. Is MCA name search free?
The basic search of existing company/LLP names on the MCA Portal is generally available online. However, formal name reservation as part of incorporation is a separate process and may involve applicable government fees.
Q3. Does an available name guarantee MCA approval?
No. An initial search result does not guarantee approval. MCA may reject a name because of similarity with another entity, trademark issues, restricted words, or other applicable rules.
Q4. Can I use a name similar to an existing company?
It is generally advisable to avoid names that are identical or confusingly similar to existing companies or LLPs, particularly where the businesses are similar.
Q5. Should I check trademarks before applying for a company name?
Yes. It is strongly recommended to conduct a trademark search before finalising the company name.
Q6. How many names can I propose for a new company?
The number of names that can be proposed depends on the applicable MCA incorporation/name reservation process and the circumstances of the application. It is always advisable to keep alternative names ready.
Q7. Can an approved company name be changed later?
Yes, a company can change its name after incorporation, subject to compliance with the applicable provisions of the Companies Act, 2013 and the required MCA filing process.
Q8. Can an LLP and company have similar names?
A proposed company name should not be identical or too similar to an existing LLP name. Therefore, both company and LLP records should be checked before finalising the name.
Conclusion
Name check-up for any company is very significant before the formation of the company in India. One can find out the existence of companies or LLPs having the same name or similar name through a proper search on the MCA portal.
But searching the name of a company on the MCA portal only is not sufficient enough. It is also important to check the availability of trademarks along with compliance of the proposed name with the requirements of the Companies Act, 2013 and Companies (Incorporation) Rules.
Good name for any company should have some basic characteristics like uniqueness, relevance, legal compliance, etc.
If any individual is going to form a company and is not sure about his name, seeking the professional help at the time of making the application will increase the chances of approval of the name.
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