Updated : May 06, 2024How do you name a Private Limited Company?
Overview :In such a highly competitive business landscape, choosing one of the most appropriate, unique, and easily identifiable private limited company names for your business can be an arduous task. However, choosing an easily recognizable, and catchy business name not only sets you apart from your competitors but also can keep you ahead of them by grabbing customers’ attention and thus, creating a vast & loyal customer base.
Regardless of the business structure, a unique company name in India plays a crucial role in a business, and therefore, private limited company name searches have increased drastically. The post helps you develop valuable insight into how to make a company name in India!
A company name is the first point of identification of the company. Simply put, a company name is the primary means through which any customer, business person, or investor comes to know as well as identify it. So, you can understand how important the role of a company name can be for a business.
Therefore, choosing an appealing and legally valid name for a private limited company in India is even more important. This blog provides you with a better understanding of how to name a company in India and valuable pvt ltd company names suggestions.
Being one of the most crucial aspects of a company, it’s very important to have a unique, easy-to-remember, and business-relevant name that can also be easily separable from the companies in the same domain or even others. Additionally, while choosing a company name, it’s necessary to adhere to the specified provisions of the Companies Act, 2013, and the Companies (Incorporation) Rules, 2014.
With the rapid expansion of the startup ecosystem in India as well as globally, it has become highly challenging to come up with a unique company name. However, it is mandatory to choose a unique name for your company along with keeping in mind the provisions specified for a private limited company name in India as per the Company Act of 2013.
Guidelines for Private Limited Company Name Search & Selection
While selecting a private limited company name, as per the Companies Act specific rules and regulations must be followed. According to the Companies Act, the rules and regulations that should be followed for selecting an appropriate name for private limited company mainly consist of a company name that:
- Should be unique: The name you want for your private limited company should be unique and not resemble any existing company name that is already trademarked. It should also not be similar to any name that is already approved for any other company by the Registrar of Companies (RoC).
- Should reflect business activity: The name of the company should reflect your business activity of the company. The name should not be unclear, complicated, or misleading.
- Should Avoid prohibited words: The name of the company should not contain any word that is prohibited under Sections 4(2) and 8 of the Companies Act.
- Should not violate any law: The company’s name should not violate any law or be against the clauses stated in any public policy.
- Should have Suffix ‘Private Limited’: Every private limited company in India must suffix the words ‘Private Limited’ with their name so that any individual/entity can easily recognize that it is a private limited company.
If your chosen company name lies in accordance with the above points, you will now be required to seek approval of your private limited company name by the Ministry of Corporate Affairs (MCA). This is how you can choose one of the most appropriate and valid private limited company names and get it registered legally. The registration will help ensure that the same name can’t be used by any individual/entity and will distinguish your business from the others.
Restrictions while Naming a Private Limited Company
The Ministry of Corporate Affairs (MCA) has specified certain restrictions under its guidelines for naming a company in India. So, while choosing a name for your company, it is essential to stick to those restrictions as it will not only help avoid legal issues but also enable you to get your company name reserved and registered smoothly without facing any barrier that may arise due to not adhering to predefined guidelines. Some key MCA restrictions on naming a private limited company or other business frameworks:
- Not showing any government patronage: the name of your private company/LLP should not show any connection with the Government departments, or local authorities, especially without seeking any permission.
- Not reflecting any Illegal or Unsocial Activities: The name of your company must not have any word that implies any illegal or unlawful activity.
- Not violating IPR laws: it is one of the most important things to keep in mind while naming your company that the name you are choosing should not violate any IPR (Intellectual Property Rights) laws such as existing trademarks, patents, or even copyright, etc.
Points to Keep in Mind Before Selecting a Private Limited Company Name
If you are seeking Indian company names ideas, before choosing the suitable ones for your business or company, certain essential points should be kept in mind; some of those points are described below:
- Conduct a thorough search: When you have finalized a name in accordance with the above provisions, it is also necessary to conduct a thorough search to private limited company name check if the proposed name is not already taken and trademarked by any existing business entity or company.
- Choose a Simple, and easily Pronounceable Name: Choosing a simple, and easy-to-remember company name that can be pronounced easily should always be preferred. Such company names can help attract potential customers and enable them to stay valuable customers of the company for longer.
- Don’t miss the industry relevancy: It is important to keep in mind the industry or its area of operations of your business while choosing your company name. The name you are deciding on for your company should reflect the nature of your business or industry.
- Check for availability of domain name: Before proceeding for the company incorporation, check if your selected company name’s domain name is available or not.
- Consider target audience & potential customers: Choose a company name your potential customers can easily relate to. Picking such a name from a private limited company name list helps build your company’s credibility and trust among customers as well as investors.
- Check for Legal Compliance: It’s crucial to check if your chosen company name adheres to the MCA’s guidelines and restrictions. Additionally, make sure that it’s not quite similar to any existing company name or trademark and doesn’t contain any undesirable words or phrases.
- Avoid choosing a name that has a limiting or no-growth prospective: Do not pick a company name that reflects a limiting or short-lived meaning/nature. Rather, choose a name that would be growth-relevant and also be used when your company flourishes.
- Don’t underestimate cultural and linguistic factors: Ensure that no cultural or linguistic factors are wholly subsided while choosing a company name as it can create a great impact on your targeted audience. Considering such factors as per your targeted area, region, country, or audience base can help you connect with them easily and thus transform them into your valuable customers.
Taking the aforementioned points into consideration can enable you to choose a highly suitable, valid and unique name of a private company in India that won’t only help ensure legal compliance but also grab targeted customers’ attention easily.
Conclusion
As we all know a company name is the primary point of contact and identification of a company. It holds the utmost value in a business landscape. Therefore, choosing the name of a private limited company or any other business structure name is a challenging task. Having a legally compliant, distinctive, industry-oriented, and easy to understand & recall name of a private company in India can turn out to be a game-changer for your business.
