Choosing a Company or LLP Name in India: Approval Rules, Trademark Checks and Common Rejections

Picking a name is one of the first decisions in setting up a company or LLP, and one of the most common reasons incorporation gets delayed. The MCA rejects names that are too similar to existing ones, conflict with trademarks or use restricted words. A little checking before you apply saves weeks. This guide explains the rules and how to choose a name that gets approved.

How Names Are Approved

For a company, the name is reserved either through the RUN (Reserve Unique Name) service on the MCA portal, or as part of the SPICe+ incorporation form. For an LLP, it's reserved through RUN-LLP or as part of the FiLLiP incorporation form. Each application can propose a limited number of names, in order of preference, with a short explanation of what the name means and how it relates to the business.

Once approved, the name is reserved for a limited period, during which you have to complete incorporation. If the reservation lapses, you have to apply again.

What Makes a Name Unacceptable

Too similar to an existing name

A name is rejected if it's identical to, or too nearly resembles, the name of an existing company or LLP. Small differences usually don't help, such as:

• Adding or removing words like "India", "Private", "Limited", "Company", "Services" or "Solutions".
• Changing the plural or singular, the spelling or the punctuation.
• Using a different tense, or adding a number or a common word.

Conflicts with a trademark

A name can be rejected if it includes a registered trademark, or a mark applied for, belonging to someone else, unless the owner consents. Even if the MCA approves it, using a name that conflicts with someone's trademark can lead to a legal dispute and a forced name change later.

Undesirable or misleading names

Names are also rejected if they're offensive, suggest a connection with the government or a public body when there isn't one, or are misleading about what the business does.

Words That Need Approval

Some words can only be used with approval from the central government or the relevant regulator, or only by entities that meet certain conditions. Examples include words such as "Bank", "Insurance", "Stock Exchange", "Mutual Fund", "Board", "Commission", "Authority", "National", "Federal", "Union", "Central", "Republic" and "Nidhi". If your proposed name includes one of these, expect to provide a no-objection letter or other approval.

What the Name Must Include

• A private company's name must end with "Private Limited".
• A One Person Company's name must include "(OPC) Private Limited".
• An LLP's name must end with "LLP" or "Limited Liability Partnership".
• A Section 8 company can use words such as "Foundation", "Forum" or "Association" without "Limited".

If the name includes words that describe the business, the objects in the MOA should match them.

Checking Before You Apply

1. Search the MCA's company and LLP master data for existing names.
2. Search the trademark register for marks in classes related to your business.
3. Check whether the domain name and social media handles you want are available.
4. Avoid restricted words unless you can get the approval.
5. Prepare two or more alternatives, all distinctive.

Tips for Getting Approved

• Choose an invented or distinctive word, rather than common words.
• Combine a distinctive word with a description of the business.
• Explain the meaning of the name clearly in the application.
• If you already have a trademark for the name, mention it.

Common Reasons for Rejection

• Too close to an existing company or LLP.
• Conflict with a registered trademark.
• Use of restricted words without approval.
• A name that doesn't match the proposed business objects.
• A vague or missing explanation of the name.

Getting Help

Think Filing checks proposed names against MCA and trademark records, files the name application, and handles the rest of incorporation.

Sources

• Companies Act, 2013, section 4, and the Companies (Incorporation) Rules, 2014.
• Limited Liability Partnership Act, 2008, and the LLP Rules, 2009.