Guidelines for allotting names to new companies ‑ Criteria for allowing use of words “Hindustan” and “Corporation” and other key words - Companies Law - No. 16/74

Circular : No. 16/74 [F. No. 27/9/74 ‑ CL ‑ III, dated 27 ‑ 9 ‑ 1974. Subject:- Guidelines for allotting names to new companies ‑ Criteria for allowing use of words Hindustan and Corporation and other key words I am directed to say that it has been observed that some of the Registrars of Companies are having an impression that while allotting names to the new companies, the word Hindustan should be kept reserved only for public sector companies, viz., Government companies and that it should not be allowed to be used by private sector companies. This question has been examined and it has been decided that the word Hindustan may be allowed to private sector companies provided the scope and scale of business of the proposed company justify the use of such a word. While disposing of applications in this regard, the guidelines already issued and their applicability or otherwise in all aspects to the facts of the cases may be examined in the light of the clarifications now given on the subject. As regards the word Corporation , a question has recently been raised as to what should be the criteria for regarding a company as a big sized company to enable the Registrar to allow the word Corporation in the name of a company other than a Government company which is proposed to be registered. This has been examined in the light of the guiding Instruction No. 20 already issued under this Department s Circular Letter No. 10(19)‑RS/65, dated 5‑5‑1962, and it is of the view that for the purpose of treating a company as a big‑sized company or not at the time of incorporation, its authorised capital will have to be taken into consideration. As no specific limit of capital has been indicated in the aforesaid guiding instructions for a big‑sized company to be incorporated, it is considered necessary to clarify the position in this regard. It may, therefore, be noted that a company which is proposed to be registered with an authorised capital of Rs. 5 crores or above may be regarded as a big‑sized company and the Registrar may allow the use of the word Corporation in deserving cases while approving the names of such companies. However, for preparing the broad sheets on big‑sized companies, those companies whose paid‑up capital is Rs. 50 lakhs or more (and not the authorised capital) are to be regarded as big‑sized companies according to the existing practice which should be continued.