InvestorQ : Are there any statutory limitations to choosing a name for my start up business?
Anamika Sodhani made post

Are there any statutory limitations to choosing a name for my start up business?

1 year ago

The Companies Act and various government regulations have put some limitations on names.

In addition, the Companies Act 2013 has issued some key guidelines on nomenclatures.

· Any company dealing with financial activities need to have a name that is related to financial aspects. All names must be in resonance with the principle objectives.

· Names that include words like Union, Statutory, National, Small Scale and Federal, require the approval of Central Government. You should be able to justify the usage.

· Any company name that includes the word Insurance, Venture Capital, Bank and Mutual Fund need to get regulatory compliance approval from regulatory bodies like SEBI, IRDA and RBI.

· A name once issued can only be changed after three years. Hence be cautious when you think up the name

There are also some limitations to naming your company as under

· Generic names having the names of places or other general names are not allowed. For example, names like solar power, corporate technology, and Punjab business are not allowed.

· A proposed name must not violate the emblems, trademarks or include offensive words. A name cannot imply a foreign embassy or foreign government.

· For a company, the name cannot be used if it is similar to a limited liability partnership name or if the proposed name is identical to a company that has been recently dissolved.

The good news is that the MCA has made the new company registration process very simple and efficient. You can get the company registered within just seven days without even going to the government offices.