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How to Check Name Availability for Pvt Ltd Company Registration?

Updated on: 01 Oct, 2024 12:18 PM

Incorporating a company involves establishing a new entity to operate a business, whether it's a for-profit organization, a non-profit organization, a startup, or a micro, small, or medium-scale business (MSME). This process requires filing various forms and documents with the Ministry of Corporate Affairs (MCA) and registering the company under the Registrar of Companies (RoC).

The concept of name availability is important because the chosen name should not resemble any existing company or LLP (Limited Liability Partnership). Moreover, the proposed name must adhere to the guidelines set by the central government.

The first and most crucial step is to select a unique and appropriate name by conducting a check on the MCA portal. This portal determines the availability of the proposed name by verifying if it complies with the prescribed rules and regulations.

Incorporation entails creating a new legal entity, which is recognized as a person under the law. The MCA governs the activities of registered companies in India through the Companies Act of 1956, the Companies Act of 2013, and other relevant legislation. The Ministry of Corporate Affairs has established a regulatory framework that must be followed when naming a company. If the chosen name fails to meet the MCA's guidelines, the application for incorporation may be rejected. This article will guide you through the process of checking the name availability for Pvt. Ltd. company registration.

What are the Guidelines for Choosing a Company Name?

The Registrar of Companies (RoC) in India has certain criteria that applicants must follow when naming a company. The approval of a company name is also subject to the discretion of the RoC officer handling the application. By closely adhering to the listed rules, the chances of getting the company name approved are high.

Uniqueness: The name of the company should be distinct and not allocated to any other registered company. The name should also be descriptive, reflecting the nature of the company. For example, a finance company should include the word "Finance" in its name, while a logistics or restaurant business cannot have "Finance" in their names.

Avoid abbreviations: Abbreviations, adjectives, and generic words are not accepted and may lead to rejection. Certain words like banks, exchange, and stock exchange also require approval from the Reserve Bank of India (RBI).

Trademark: The proposed company name should not infringe upon a registered trademark or a trademark application unless the consent of the trademark owner or applicant is provided along with the name approval application.

Patronage: The proposed company name cannot imply association, connection, or patronage of a national hero, a person of high esteem, or individuals who hold/have held important positions in the government. It should not imply any association with the Indian or foreign government.

Domain name blocking: It is advisable for the applicant to block the corresponding domain name to prevent duplication or unauthorized use.

Regulatory approval: If the company name includes words such as insurance, bank, stock, exchange, venture capital, asset management, mutual fund, etc., regulatory approvals may be required from entities such as the RBI, SEBI, IRDAI, etc.

Following these guidelines and complying with the regulatory requirements will enhance the chances of obtaining approval for the proposed company name.


How to Check Company Name Availability on MCA Portal?

To check the availability of a name, the applicant should follow these steps:

  • Step 1: Visit the Ministry of Corporate Affairs Portal.
  • Step 2: Access the name availability check tab on the website under the services tab.
    Access the name availabilit
  • Step 3: Enter the proposed name along with the first commercial activity of the firm to obtain accurate results.
    commercial activity
  • If the proposed name entered by you is available, you will see a message saying, ‘The name is available for incorporation as per the Companies Act, 2013’. However, if the name is already taken, you will see a list of companies with similar names.
  • When checking name availability, it is recommended to enter only the first two words of the proposed name.
  • According to the guidelines, the applicant should also verify the availability of the proposed name on the Trademark portal.
  • The proposed name should not have signs of any existing trademark unless the trademark owner has provided a No Objection Certificate (NOC) to use their trademark.
  • To perform a trademark search, visit www.ipindia.gov.in and access the trademark search tab. Enter the name and begin the search.
  • The applicant should also check for similar phonetic names to avoid potential objections.
  • If the proposed name is not found in the search results, the applicant can proceed to use it.
  • If the proposed name is completely unique, the applicant can directly apply by filing the necessary forms on the MCA portal.
  • If there is a higher chance of the name availability being matched with an existing name, the applicant can file a separate name application. In this application, they can provide a maximum of two alternative names. If any of those names are not approved, they can proceed with the other name in the application.

What are the Company Name Rejection Norms?

The Ministry of Corporate Affairs (MCA) has established a regulatory framework for naming a corporate entity. If a proposed name does not comply with the MCA's rules, the application will be rejected. Here are some factors that can result in the rejection of a proposed name:

  • Use of abbreviations, adjectives, and generic terms: Incorporating these elements into the corporate name can lead to rejection.
  • Significance of the corporate name: The description of the corporate name should hold significance and meaning.
  • Toponymic differentiation: If the addition of a toponym (geographical name) is the only factor that distinguishes the proposed name from an existing one, it will be rejected.
  • Restriction on the use of the word 'state': The word 'state' can only be used by government entities, and its inclusion in a proposed name for a non-government company can lead to rejection.
  • Offensive words or profanity: The proposed name must not contain any offensive words that go against public morality or include profanity.
  • Mere translation of an existing company name: If a proposed name is a mere translation of the name of an existing company from English to Hindi (or any other language), it will be rejected. For example, if there is a company named RIT Mango Producers, a proposed name like RIT Aam Producers would not be approved.
  • Avoid commonly used words: The proposed name should not include commonly used words that lack distinctiveness.
  • Connection with national leader: If a proposed name indicates a connection with the National Leader or the government, it will be rejected by MCA.

Applicants must adhere to these norms prescribed by the MCA, as non-compliance can result in the rejection of the proposed name.


Tips and Pitfalls for Company Registration

Do's:

  • Choose a name that provides a glimpse of the company's nature or industry.
  • Ensure the name is unique to avoid duplication or offense.
  • If the company is a private limited (PVT LTD) entity, include the abbreviation at the end of the name.

Don'ts:

  • Avoid offensive names that may be considered inappropriate or disrespectful.
  • Do not use the plural version of an existing name.
  • Combining or separating different names to create a similar-sounding one should be considered as a single company.
  • Variations in tense or number will not be considered separate names.

How to Get Your Company Name Approved from MCA?

Getting your company's name approved by the Ministry of Corporate Affairs (MCA) is an essential step in starting your business. This process ensures that your chosen name is unique and meets the MCA's legal requirements.

As per the Companies Act of 2013, every company in India must have a name that stands out from existing businesses and follows all legal guidelines. The MCA carefully reviews the name to confirm it isn't already in use, is too similar to another company's name, or is violating any trademarks or regulations.

If you are planning to register your company, make sure to follow the above-mentioned guidelines while selecting your company name to ensure compliance with the law and ensure an easy approval process.


FAQ on Company Name Checks

Q- How do you check if a name is available for a company?

You can check if a company name is available by following these steps:

  • Check online on the Ministry of Corporate Affairs (MCA) website and search for the proposed company name online.
  • Visit any ROC office and submit Form INC-1 with a fee of Rs 500.

Q- Can I use a company name that already exists?

No, it is not legal to use a business name that has already been registered in India. Therefore, it is essential to check the availability of a name before choosing one for your business.


Q- Can you buy a company name and not use it?

No. You cannot reserve a company name without forming a company under that name. According to the Companies Act, a company name cannot be booked without registering it with the MCA. If you're not ready to start trading, you can consider forming the company and keeping it dormant until you're ready to begin operations.


Q- Is it essential to search for MCA name availability before reservation?

Yes, it is important to conduct a thorough name availability search before finalizing your business name. This ensures compliance and allows you to proceed confidently, helping you register your company more quickly.


Q- Is there a time limit for reserving a company name after the approval?

Different jurisdictions have specific rules for how long a reserved company name remains valid. Once approved, the name is valid for 20 days if reserving for a new company and 60 days if changing the name of an existing company, starting from the approval date.


Q- Can I change my company name after registration?

Under the Companies Act 2013, you can change your company name by passing a special resolution in a general meeting. This change must also be approved by the Registrar of Companies (RoC) and the Central Government.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.