How to Reserve a Company Name?
How to Reserve a Company Name?
The name of a company is a crucial aspect of its identity, effectively communicating its brand and business activity. Therefore, it must be chosen carefully considering all legal requirements. The proposed name should not infringe upon any existing business names. Once you’ve finalized the name, you must obtain approval from the Registrar of Companies. Reserving a company name is a vital step in the business registration process. The Ministry of Corporate Affairs (MCA) provides two primary methods: RUN (Reserve Unique Name) and SPICe+ (Simplified Proforma for Incorporating Company electronically Plus). Understanding the differences and benefits of each method can help you choose the best option for your business, ensuring a seamless and compliant name reservation process.
For expert assistance with Company name reservation and company registration, contact IndiaFilings today. Let our experienced team guide you through a smooth and efficient process.
Get Started!What is a Company Name?
A company name is a unique identifier for a business entity that distinguishes it from other businesses and legal entities. It serves several key purposes:
- Legal Identification: The company name is registered with governmental authorities, giving the business entity a legal identity. This name is used in all legal documents and official records.
- Brand Identity: The company name represents the brand and image of the business. It is often the first impression customers and clients have of the company and plays a crucial role in marketing and branding efforts.
- Operational Distinction: A unique company name helps to avoid confusion in the marketplace, ensuring that customers can distinguish one company from another. It also prevents legal issues related to trademark infringement and business name conflicts.
- Compliance: Choosing and registering a company name is a mandatory step in the business incorporation process. It must comply with various legal regulations and guidelines to be approved by the relevant authorities.
- Professionalism: A well-chosen company name can convey professionalism, credibility, and the nature of the business, helping to attract customers, investors, and partners.
Characteristics of a Good Company Name
- Unique: The name must be distinct and not identical or similar to existing company names or trademarks.
- Compliant: It should comply with the legal requirements and guidelines set forth by regulatory authorities, such as the Companies Act and trademark laws.
- Relevant: The name should reflect the nature of the business, its values, and its industry.
- Memorable: A good company name is easy to remember, pronounce, and spell, aiding in brand recognition and recall.
- Scalable: The name should be flexible enough for business growth, expansion, and diversification without becoming outdated or irrelevant.
Also read – MCA Restricted Words for Company Names in India
Importance of Reserving a Company Name
Reserving a company name is an essential step in the business incorporation process. It ensures that your name is available and legally protected, preventing other businesses from using the same or a similar name.
Legal Guidelines & Principles to Select Company Name
Selecting an appropriate name involves careful consideration to ensure it complies with legal requirements and avoids potential conflicts with existing businesses. Relevant acts, such as the Companies Act, the Trademark Act, and the Names and Emblems Act, must be followed.
| S.No. | Laws | Legal Provisions |
| 1 | Companies Act |
Section 4 (2): The proposed name must not be identical or closely resemble an existing company or LLP name. The proposed name must not constitute a legal offence under any current law. The proposed name must not be considered undesirable by the Central Government. Section 4 (3): The proposed name must not suggest any connection or patronage from the Central/State/Local Government or a government-constituted body. The proposed name must not include words or expressions that require prior approval from the Central Government. |
| 2 | Companies (Incorporation) Rules |
Rule 8: Certain factors must be disregarded when comparing the proposed and existing company names. If, after disregarding these factors, the names are still the same, the proposed name cannot be used. A complete list of these factors is detailed in Rule 8. Rule 8A lists words and expressions deemed undesirable by the Central Government, which cannot be used to register a new company. Rule 8B: This rule lists words and expressions that require prior approval from the Central Government before being used in a company name. |
| 3 | Trademark Act | Section 29: This section addresses the infringement of registered trademarks. A proposed name cannot be the same as, similar to, or identical to a registered trademark unless the entity is the owner or permitted user of the trademark. |
| 4 | Names & Emblems Act | Section 4: No competent authority shall register any company, firm, or other body of persons with a name listed in the Schedule of the Act without prior approval from the Central Government. |
Key Requirements for a Company Name
- The name should be unique and reflect the business activities.
- The business activity should not be the first word in the name.
- The proposed name should not violate someone else’s trademark.
- The name must meet the requirements of the Companies Act 2013.
Application for Reserving the Name of a Company
The Ministry of Corporate Affairs has been working to streamline the company incorporation process. With minimal professional assistance, even a layperson can successfully incorporate a company. This article outlines the simple process for applying for the name of a proposed company. There are two methods available:
Method 1: Apply Through RUN (Reserve Unique Name) Form
Reserve Unique Name (RUN) is a web service designed for reserving a name for a new company or for changing an existing company’s name. This service allows you to verify if your chosen company name is unique. Before introducing the RUN web form, all applications related to company names had to be submitted using Form INC-1.
Previously, these applications required a minimum of 2 Director Identification Numbers and 1 Digital Signature. However, with the RUN web form now in place, a company name can be reserved easily without needing a digital signature.
Method 2: Apply Directly Through Company Incorporation SPICE Forms
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is an integrated web form consolidating 11 services provided by three Central Government Ministries and Departments. It is divided into two parts:
SPICe+ Part A:
For newly incorporated companies, this part allows you to reserve your company name and initiate the registration process.
SPICe+ Part B:
This section covers a range of vital services, including:
- Company incorporation
- Application for Director Identification Number (DIN)
- PAN application
- TAN application
- GSTIN application
- EPFO registration
- ESIC registration
- Opening of a company bank account
- Profession Tax Registration (exclusive to Maharashtra)
Part A (Name Reservation) and Part B (All Other Services) can be filled out simultaneously. Alternatively, you can start by applying for Part A and then proceed to Part B to access the full suite of services required for company incorporation.
For existing companies, you can use the Reserve Unique Name (RUN) web service provided by the MCA to reserve and change names.
Procedure for Company Name Reservation
Reserving a company name is a vital step in the company registration process. Here’s a comprehensive and detailed guide on reserving a name for your new or existing company using the RUN web service or SPICe+ Part A form.
Step 1: Search for Name Availability
Once you have decided on a name, you must check its availability on the Ministry of Corporate Affairs portal at MCA Name Search and the trademark portal at Trademark Public Search.
IndiaFilings provides a convenient MCA name search tool and trademark public search service. These tools allow users to easily check the availability of a proposed company name on the Ministry of Corporate Affairs portal and verify trademark status on the official trademark portal. This streamlines ensuring your chosen company name is unique and not already registered, saving time and reducing the risk of application rejections.
Get Started!Step 2: Select the Form – RUN/Spice Plus
For Existing Companies or Name Changes: RUN (Reserve Unique Name) Web Service:
- Visit the MCA website and navigate to the RUN service.
- No digital signature is required for this process.
For New Company Incorporations:
- SPICe+ (Simplified Proforma for Incorporating Company electronically Plus) Part A:
- Visit the MCA website and access the SPICe+ form.
- This integrated form consolidates multiple services to streamline the incorporation process.
Step 3: Fill Out the Name Reservation Form
RUN Web Service:
- Enter the proposed company name and provide necessary details such as the type of company and the relevant industry.
- Check the availability of the proposed name through the service.
SPICe+ Part A:
- Fill out the form with the proposed company name, type of company, proposed activities, and other related information.
- Submit the form to reserve the company name and initiate the registration process.
Step 4: Process of Application for Company Name
Login to the MCA V3 Portal:
- Visit the MCA V3 Portal.
- Enter your login credentials to access the portal.
- Navigate to the Name Reservation Section:
- After logging in, navigate to MCA Services.
- Go to Company e-Filing → Incorporation Services → SPICe+ Form Reserve Name for new Company Incorporation.
- The name reservation page will open.
Select Company Details:
On the name reservation page, select the following details:
- Type of Company: Select “New Company (Others)”.
- Class of Company: Choose either “Private” or “Public”.
- Category of Company: Select “Company limited by shares”.
- Sub-Category of Company: Choose “Nongovernment Company”.
Choose Industry Sub-Class:
- Click on the “Search and select industry sub-class” tab.
- Choose the appropriate industry sub-class for your company using the National Industrial Classification (NIC) Code.
- You can select a maximum of three NIC codes.
If your application is approved, these codes will be automatically included in the main object clause of the Company’s Memorandum of Association (MoA).
Enter the Proposed Company Name:
- Carefully type the proposed name for your company.
- Ensure that the name is unique and complies with naming guidelines.
- Attach a PDF document, including additional information or supporting documents for the name reservation.
Submit the Application:
- Click the “Auto Check” button to verify the name’s availability and compliance.
- Once the auto-check is complete, apply.
- Pay the required government fee of Rs. 1,000/- for the name reservation.
Step 5: Approval and Validity
- After submission, the name approval process typically takes 4-5 working days.
- If the name is approved, you will receive an approval letter, which will be valid for 20 days.
- You may receive a resubmission request if there are any queries or issues.
Resubmission:
- Address the resubmission query promptly, as generally, resubmission is allowed only once.
- The name will be either rejected or finally approved based on the department’s satisfaction with the resubmission.
Conclusion
Choosing a company name is essential for establishing your business identity. It must be unique, comply with legal requirements, and not conflict with existing names. Follow the Companies Act, Trademark Act, and Names and Emblems Act guidelines. The Ministry of Corporate Affairs (MCA) offers two methods for name reservation: the RUN (Reserve Unique Name) web service and the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. Understanding these options helps you pick the best one for your needs. Use MCA and trademark search tools to ensure your name is unique and compliant, ensuring a smooth registration process and a strong start for your business.
IndiaFilings can assist with Company name reservation and company registration, providing expert guidance.
Get Started!