Choosing the right name is an important step in the company registration process. Before registering a company in India, it is necessary to check whether the desired name is available and complies with the guidelines set by the Ministry of Corporate Affairs (MCA).
Importance of Checking Company Name Availability
A company name must be unique and should not be identical or similar to an existing company or registered trademark. Checking name availability helps avoid rejection during the registration process and ensures smooth approval.
Guidelines for Selecting a Company Name
While choosing a company name, the following rules must be followed:
- The name should be unique and distinguishable
- It should not match or closely resemble existing company names
- It must not violate any registered trademark
- The name should comply with MCA naming rules
- Certain words may require prior approval from authorities
How to Check Company Name Availability
The availability of a company name can be checked through the MCA portal using the following methods:
1. MCA Name Search Tool
You can use the MCA’s online search facility to check existing company names. This helps identify whether your desired name is already registered or too similar to another entity.
2. SPICe+ Part A Form
You can apply for name reservation through the SPICe+ Part A form. This allows you to submit proposed names for approval by the Registrar of Companies (ROC).
3. RUN (Reserve Unique Name) Service
The RUN service is another option for reserving a company name. It allows applicants to submit name choices for approval before proceeding with incorporation.
Tips for Choosing a Company Name
To improve the chances of approval:
- Choose a unique and meaningful name
- Avoid generic or commonly used words
- Add relevant words that reflect business activities
- Ensure the name follows MCA guidelines
Reasons for Name Rejection
A company name application may be rejected due to:
- Similarity with existing company or trademark
- Use of restricted or prohibited words
- Non-compliance with MCA naming rules
- Lack of uniqueness
Approval of Company Name
Once the name is approved by the Registrar of Companies, it is reserved for a specific period. During this time, the applicant must complete the incorporation process.
Conclusion
Checking company name availability is a crucial step in the registration process. Ensuring that the name is unique and compliant with MCA guidelines helps avoid delays and increases the chances of successful company incorporation.
FAQ’s
1. What is company name availability on MCA?
It refers to checking whether a proposed company name is unique and can be approved by the Ministry of Corporate Affairs before incorporation.
2. How can I check company name availability in India?
You can check name availability through the MCA portal using the “Check Company Name” or RUN (Reserve Unique Name) service.
3. What are the rules for selecting a company name?
The name must be unique, not identical or similar to existing companies or trademarks, and must comply with naming guidelines under the Companies Act, 2013.
4. What is RUN (Reserve Unique Name) service?
RUN is an online facility provided by MCA to reserve a proposed company name before incorporation.
5. How many names can be submitted for approval?
Typically, you can submit up to two proposed names in one RUN application.
6. How long does it take for name approval?
Name approval usually takes 1–3 working days, depending on verification and availability.
7. How long is an approved company name valid?
Once approved, the name is generally reserved for 20 days for new companies to complete incorporation.
8. What are common reasons for name rejection?
- Similarity with existing company or trademark
- Use of restricted or prohibited words
- Non-compliance with MCA naming guidelines
- Incomplete or misleading application
9. Can I reapply if my company name is rejected?
Yes, you can submit a fresh application with revised names after correcting the issues.
10. Is trademark check necessary before applying?
Yes, it is advisable to check trademarks to avoid future legal issues and increase chances of approval.
11. Can LLPs also reserve names through MCA?
Yes, LLPs can also use the RUN-LLP service for name reservation.
12. What tips can improve company name approval chances?
- Choose unique and creative names
- Avoid generic or common words
- Add relevant business keywords
- Check MCA and trademark databases beforehand
