Planning to Start a Company in India? Reserve Your Company Name the Right Way

Naming your company is more than a branding exercise—it’s a legal requirement. In India, the Companies Act, 2013 along with the Companies (Incorporation) Rules, 2014 lays down clear guidelines on what names are allowed (and what are not) when incorporating a new business. This blog explores the legal framework governing permissible company names, referencing Section 4 of the Companies Act, 2013 and Rules 8, 8A, and 8B of the Companies (Incorporation) Rules.

1. Requirements under - Section 4 of the Companies Act, 2013.

Section 4 deals with what should be included in a company’s memorandum of association, and more importantly, provides specific guidance on selecting a company name including:

• The name of a private company must end with “Private Limited” and a public company must end with “Limited.”

• A company’s name must not be identical or too similar to the name of any existing company registered under the Companies Act or under any previous law.

• The proposed name must not constitute an offence under any prevailing law.

• It must also not be undesirable in the opinion of the Central Government—a broad term allowing rejection of misleading, vague, or offensive names.

2. Restrictions under - Rule 8, 8A, and 8B of the Companies (Incorporation) Rules:

Rules 8, 8A, and 8B specifically prescribe restrictions and criteria for determining whether a proposed name is permissible.

A. Names Identical or Too Similar to Existing Entities

• A name identical to or resembling an existing company or LLP is not allowed.

• Changing tense (e.g., “Build” vs. “Built”), pluralizing, or adding small modifications like “Co.” or “Corp” won’t make it distinct.

B. Names Conflicting with Registered Trademarks

• If a proposed name includes a trademark registered under the Trade Marks Act, 1999, and you’re engaged in the same or similar business, then that name is not allowed—unless you have prior permission from the trademark owner.

C. Prohibited Words and Expressions

Certain words require prior approval or are outright prohibited. These include:

• Government-related terms: National, Central, Federal, Republic, Rashtrapati, President, Minister, Prime Minister, etc.

• Organizational types: LLP, Trust, HUF, Partnership, Firm, Society, Co-operative, GmbH, Inc., etc.

• Regulatory bodies or misleading authority terms: Board, Commission, Panchayat, Development Authority, Judiciary, Statutory, Bureau, Undertaking

• Misleading words suggesting business scope not supported by object clause (like “Bank,” “Stock Exchange,” “Insurance,” etc.)

D. Geographical Names Alone

• Names that consist solely of the name of a continent, country, state, or city (e.g., Asia Limited, Delhi Private Limited) are not allowed unless combined with a descriptive or distinctive word.

E. Generic Business Descriptions

• Names that are purely generic in nature like Textile Mills Ltd. or Software Solutions Pvt. Ltd. will likely be rejected unless accompanied by a distinctive element.

3. Name Reservation Process

Once a legally valid and distinctive name is decided, the next step is to formally reserve it with the Ministry of Corporate Affairs (MCA). This is done by filing SPICe+ Part A, an online form available on the MCA V3 portal. The form requires details such as the proposed name(s), type of company (private, public, OPC, etc.), and the main business activity. Up to two names can be proposed in a single application. A fee of ₹1,000 is payable for name reservation. If approved, the name is reserved for a period of 20 days for private companies (or up to 60 days in certain cases, such as for public companies filing Part B separately). Timely submission of the incorporation forms after name approval is crucial to avoid the expiration of the reserved name. Filing SPICe+ Part A early and correctly helps ensure that your preferred business name is secured before someone else claims it.

Conclusion

Choosing a compliant and distinctive name for your company ensures a smoother incorporation process and helps build a strong foundation for your brand. With the right due diligence—including a trademark search, understanding of Section 4 of the Companies Act, and adherence to Rules 8, 8A, and 8B—you can avoid name rejection and costly rework.

At Prolead, we go a step further to protect your business identity. We conduct a thorough name and trademark search across:

• The MCA database (to check for existing companies),

• The India Trademark Registry, and

• The WIPO (World Intellectual Property Organization) international trademark database.

This ensures that your proposed company name is not just legally compliant in India but also safe from potential disputes worldwide.

Need help with name reservation or incorporation in India? Our team offers end-to-end company registration and legal compliance services. [Get in touch today.]