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Overview

Incorporation is the formation of a new company (A legal entity that is effectively recognized as a person under the law). The company can be a business, a startup, a micro small, or medium scale business. MCA regulates the affairs of the companies registered in India through the Companies Act, 1956, 2013, and other relevant bills and rules. The Ministry of Corporate Affairs has a regulatory framework set up that is to be considered while naming the company. If the name of the company does not fall under the rules set by MCA then the application may get rejected.

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Learn about MCA

The Ministry of Corporate Affairs is governed by the finance minister of the Government of India. The Ministry of corporate affairs is mainly responsible for the regulation of the Indian enterprises that are operating in the industrial and service sectors.

The Ministry of Corporate Affairs is primarily concerned with administration of the Companies Act 2013, the Companies Act 1947, the Limited Liability Partnership Act, 2008, and the Insolvency and Bankruptcy Code, 2016. It is responsible mainly for the regulation of Indian enterprises in the industrial and services sector. The ministry is mostly run by civil servants of the ICLS cadre. These officers are elected through the Civil Services Examination conducted by Union Public Service Commission. The highest post, Director General of Corporate Affairs (DGCoA), is fixed at Apex Scale for the ICLS.

Guidelines for choosing your Company

The Registrar of the Companies (ROC) across Indian expects the applicant to follow certain criteria while naming a Company. The approval is also subject to the officer handling the application. The more closely the rules that are listed are followed the better are th4e chances of getting the name of the Company approved.

  • Uniqueness: The name of the company is a unique component. A name once registered won't be allocated to another company. This name needs to be descriptive For example if the company is a finance company, the word "Finance" should be included in the name. This word describes the nature of the company. So if the company is in the Logistic or restaurant business they cannot have "Finance" in the name.
  • Avoid abbreviations: Abbreviations, adjectives and generic words will be rejected. The words banks, exchange, and the stock exchange should be approved by RBI.
  • Trademark: Proposed company name cannot infringe on a registered trademark or an application for registration of a trademark unless the consent of the registered trademark owner or trademark applicant is submitted along with the name approval application.
  • Patronage: Proposed company name cannot imply association or connection with or patronage of a national hero or any person held in high esteem or important personages who occupied or occupying important positions in Government. The proposed name cannot imply an association with the Indian or Foreign Government.
  • Block your domain name: An applicant must block the domain name to avoid duplication.
  • Regulatory approval: The name of the company which has words like insurance, bank, stock, exchange, venture capital, asset management, mutual fund, etc may require regulatory approvals from RBI, SEBI, IRDAI, etc.

Do's and Dont's while registering a Company

Do's

  • A word that describes the company should be mentioned.
  • The name needs to be unique to avoid duplication or offense.
  • In the case of the Private Limited Company, the name should have the abbreviation at the end.

Dont's

  • The name should not be offensive.
  • The plural version of any existing name is not applicable.
  • Separating and joining the different names can be considered.
  • The use of different tenses or numbers will not be counted as another name.

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