MCA issues advisory to stakeholders for name reservation and incorporation of a company

Ministry of Corporate Affairs has issued advisory for name reservation and incorporation of company to stakeholders providing best practices for reserving and incorporating company names in India.

Key Highlights:

1. Companies must ensure that the proposed name(s) are distinctive and unique, and do not closely resemble, phonetically or otherwise, any existing or well-known company, LLP, brand, or entity.
2. If a company was dissolved after liquidation, its name cannot be used by another company. The name remains restricted for 2 years from the date of dissolution.
3. If a company was struck off from the register, its name cannot be reused. The name remains restricted for 20 years from the date the strike-off is published in the Official Gazette.
4. When a company changes its name, the old name cannot be used by another company immediately. The name remains restricted for 3 years from the date of name change.
5. Companies must avoid using well known and established abbreviations in the proposed name.
6. Before submitting a proposed Company name, first check if it conflicts with any existing registered trademarks.
7. If a Board Resolution is required for a name change, it must be printed on the Company’s official letterhead and include proper details of the directors who signed it with their approved DIN. Even minor changes in the name of an existing Company require the filing of Form RUN / RUN LLP for name approval.

Source: Ministry of Corporate Affairs