Rule 10 - Guidelines for availability of name - Companies (Name Availability) Rules, 2011

Guidelines for availability of name 10. In supersession of all the previous circulars and instructions regarding name availability, the applicants and Registrar of Companies are also advised to adhere following guidelines while applying or approving the proposed name: (i) It is not necessary that the proposed name should be indicative of the main object. However, in case the proposed name is indicative of any activity, the same will be appropriately reflected in the main object clause of the Memorandum of Association; (ii) If the Company s main business is finance, housing finance, chit fund, leasing, investments, securities or combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, viz., Chit Fund/ Investment/ Loan, etc.; (iii) If it includes the words indicative of a separate type of business constitution or legal person or any connotation thereof, the same shall not be allowed. For e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.; (iv) Abbreviated name such as ABC limited or 23K limited cannot be given to a new company. However the companies well known in their respective field by abbreviated names are allowed to change their names to abbreviation of their existing name (for Delhi Cloth Mills limited to DCM Limited, Hindustan Machine Tools limited to HMT limited) after following the requirement of section 21 of the Companies Act, 1956; (v) If the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding should not be allowed for a period of 2 years from the date of such dissolution since the dissolution of the company could be declared void within the period aforesaid by an order of the Court under section 559 of the Act. Moreover, if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 560 of the Act, then the same shall not be allowed before the expiry of 20 years from the publication in the Official Gazette being so struck off since the company can be restored anytime within such period by the competent authority; (vi) If the proposed names include words such as Insurance , Bank , Stock Exchange , Venture Capital , Asset Management , Nidhi , Mutual fund etc., the name may be allowed with a declaration by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant; (vii) If the proposed name includes the word State , the same shall be allowed only in case the company is a Government company. Also, if the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited, the same shall not be allowed; (viii) If a foreign company is incorporating its subsidiary company, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available; (ix) Change of name shall not be allowed to a company which is defaulting in filing its due Annual Returns or Balance Sheets or which has defaulted in repayment of matured deposits and debentures and/or interest thereon; (x) With a view to maintain uniformity, the following guidelines may be followed in the use of keywords, as part of name, while making available the proposed names under sections 20 and 21 of the Companies Act, 1956: S.No. Key Words Required authorized capital (in Rs.) 1 Corporation, corp, corpn, corp. 25 crore 2 international, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, Inter Continental, Asiatic, Asia, Asian being the first word of the name 5 crore 3 If any of the words at (2) above is used within the name (with or without brackets) 2 crore 4 Hindustan, India, Indo, Indian, Bharat, Bharatvarsh, Bhartiya or any other country s name being first word of the name 2 crore 5 If any of the words at (4) above is used within the name (with or without brackets) 25 lakh 6 Industries/ Udyog 5 crore 7 Enterprises, Products, Business, Manufacturing, Venture. 50 lakh