Deciding the Availability of Name for Company Registration in Madurai

A name which falls within the categories mentioned following will not generally be made available.
• If it is not in consonance with the principal objects of the company as set out in its Memorandum of Association. This does not necessarily mean that every name should be indicative of its objects but when there is some indication of business in the name then it should be in conformity with its objects.
• If the company/companies main business is finance unless the name is indicative of that particular financial activities viz. Chit funds/investments/loans etc.
• If it includes any word or words which are offensive to any section of the people.
• If the proposed name is the exact Hindi translation of the name of an existing company in English especially an existing company with a reputation.

• If the proposed name has a close phonetic resemblance to the name of a company in existence, for example, J.K. Industries Ltd., Jay Kay Industries Limited.
• If the name is only a general one, like Cotton Textile Mills Ltd., or Silk Manufacturing Limited and not specific like Calcutta Cotton Textiles Mills Limited or Lakshmi Silk Manufacturing Company Limited.
• If it includes the word Co-operative, Sahakari or the equivalent of word ‘co-operative’ in the regional languages of the country.
• If it attracts the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time i.e., use of improper names, prohibited under this Act.
• If it connects Government’s participation or patronage, unless circumstances justify to, e.g., a name may be deemed undesirable in certain context if it includes any of the words such as National, Union, Central, Federal, Republic, President, Reshtrapati, small scale industries, Cottage industries etc.
• If the proposed name contains the words ‘British India’.
• If the proposed name implies association or connection with Embassy or Consulate which suggests connection with local authorities such as Municipal, Panchayat, Delhi Development Authority or any other body connected with the Union or State Government.
• If a proposed name implies association or connection with or patronage of a National hero or any person held in high esteem or important personages who are occupying important positions in Government so long as they continue to hold such positions.
• If the proposed name is vague like D.I.M.O. Limited or L.V.N.R. Private Limited or S.S.R.P.Limited.
• If it resembles closely the popular or abbreviated descriptions of important companies like Tisco (Tata Iron & Steel Company Limited), H.M.T. (Hindustan Machine Tools), I.C.I. (Imperial Chemical Industries), Texmaco (Textile Machinery Corporation), WIMCO (Western India Match Company) etc. In some cases the first word or the first few words may be the key words and care should be taken that they are not exploited. Such words should not be allowed even though they have not been registered as trademark.
• Where the existing companies are stated and found to be well-known in their respective fields by their abbreviated names these companies may be allowed to change their names by way of abbreviation. Earlier prior approval of Regional Director was necessary for such change of name.
• If it is different from the name/names of the existing company/companies only to the extent of having the name of a place within brackets before the word ‘limited’, for example, Indian Press (Delhi) Limited should not be allowed in view of the existence of the company named Indian Press Limited.
• If the proposed name includes common words like ‘Popular ‘General ‘Janta’, if they are in the same state doing the same business. But in case of companies in different business in the same state and in all cases when the registered office of the company is in different States, the name might be allowed. For instance if there is ‘Popular Drug House Private Limited’ existing another company by the name of ‘Popular Plastic Private Limited should not be objected to.
• If it includes name of registered Trademark, unless the consent of the owner of the trademark has been produced by the promoters. It may not be possible in all cases to check up the proposed name with the trademark however if the Registrars are in the knowledge or some interested party/parties bring to their notice a trademark which is included in the proposed name then it should not be allowed unless a no-objection certificate is obtained from the party who has registered the trademark in its own name.

• If a name is identical with or too nearly resembles the name by which a company in existence has been previously registered. However, it a proposed company is to be under the same management or in the same group and likes to have a closely resembling name to the existing companies under the same management or group with a view to have advantage of the goodwill attached to the management or group name, such a name may be allowed. Even in the case of unregistered companies or firms which have built up a reputation over a considerable period, the principle (that if a name is identical with or too closely resembles the name by which a company has been previously registered and is in existence, it should not be allowed) should be observed as far as practicable. In view of the difficulty in checking up whether a proposed name is identical with or too nearly resembles the name of an unregistered company or a firm of repute, it should at least be ensured that a proposed name is not allowed if it is identical with or too nearly resembles the name of a firm within the knowledge of the Registrar. The cases of foreign companies of repute should also be similarly treated even if there are no branches of such companies in India.
• If it is identical with or too nearly resembles the name of the company in liquidation, since the name of a company in liquidation, is borne on the register till it is finally dissolved. A name which is identical with or too closely resembles the name of a company dissolved as a result of liquidation proceedings should also 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. Further as a company which is dissolved in pursuance of an action under Section 560 of the Act can be revived by an order of the Court before the expiry of 20 years from the publication in the Official Gazette of the company being so struck off, it is considered desirable to stop or conditionally allow the registration of a proposed name which is identical with or too nearly resembling of such dissolved company for a period indicated below. Since, the period of 20 years as prescribed under the law is considered an unduly long period, the registration of a proposed name which is identical with or too nearly resembles the name of a company dissolved in pursuance of Section 560 should not be allowed for a period of first five years only. During the next five years, such a proposed name may be allowed subject to the condition that in the event of the dissolved company being restored to life by an order of the Court, the new company would have to change its name. After a lapse of ten years, names identical with or too nearly resembling those of the dissolved companies may be allowed without any such condition.
• If it is different from the name of existing company merely by the addition of words like ‘New’, ‘Modern’, ‘Non’ etc. Names such as ‘New Bata Shoe Company’, ‘Nav Bharat Electronic’, etc., should not be allowed. Different combination of the same words also requires careful consideration. If there is a company in existence by the name Builders and Contractors Limited’ the name “Contractors and Builders Limited” should not ordinarily be allowed.
• If it includes words like ‘Bank, ‘Investment’, ‘Insurance’ and Trust’, ‘Banking’. These words may, however, be allowed in cases where the circumstances justify it. In cases of Banking Companies, the Reserve Bank of India should be consulted and its advice should be taken before a name is allowed for registration. The purpose of such consultation is to prevent small banking companies from misleading the general public by adopting the names of some well-established and leading banks functioning elsewhere than in India.
• If the name includes the word ‘Industries’ or ‘Business’ unless the name is indicative of the business of the proposed company for otherwise it serves as a lever for the company to diversify its activities.
• If it includes proper name which is not a name or surname of a director. Such names should not be allowed except for valid reasons. For example, for sentimental reasons, sometimes the names of relatives such as wife, son and daughter of the director may have to be allowed provided one other word suggested, makes the name quite distinguishable.
• If it is intended or likely to produce a misleading impression regarding the scope or scale of its activities which would be beyond the resources at its disposal. For example, names like Water Development Corporation of India Private Ltd, Telefilm of India Private Ltd. etc. All India Scales Organization Ltd., International Import and Export Company Ltd., etc should not be allowed when the authorized capital is to be only a few lacs and the area of operation limited to a State. Words like “International. Hindustan, India Bharat Continental, Asiatic, may be allowed only if the scope and scale of business of the proposed company justify the use of such words. However, the words Jai Hind, Jai Bharat, ‘Nav Bharat. New India’, etc. included in the proposed name need not stand the same test as Hindustan, India etc. (as they do not give the same sense). Similarly, the word, Bharat. India, etc. if stated in the brackets before the word limited or private limited need not stand the same test as the words India etc. put at the beginning of the name. Also the word India or Bharat in brackets before the word ‘limited or private limited does not necessarily mean that the company is an Indian Branch of some foreign company, such as Marsden Electricals (India) Private Limited.

• If the proposed name includes the word State’ along with the name of the State such as Kerala State Company Limited it should not be allowed as it would give an impression of the Kerala State Government participating in the share capital of the proposed company However, if the name of a State only is included without the addition of the word ‘State in the proposed name, then it may be allowed as it is not likely to give the impression that the company has the State Government’s interest in it.
• If the proposed name includes the word ‘Corporation’, unless the Company could be regarded as a big sized company. However, the words Corporation and ‘Company’ may be regarded as closely resembling for purposes of allowing a new name. If for example, a company by the name of ‘Rajasthan Finance Corporation’ already exists, ‘Rajasthan Finance Company’ should be regarded as undesirable within the meaning of Section 20 of the Act.
• If the proposed name includes words like French, British, German etc., unless the promoters satisfy that there is some form of collaboration and connection with the foreigners of that particular country or place, the name of which is incorporated in the name. Thus, the name ‘German Tool Manufacturing Company Ltd.,’ should not be allowed unless the company has some connection with Germany.
• Even where, except for the first word, all the other words of the proposed name are similar to those of an existing company, the first word should be considered to be sufficient to distinguish it from the name of an existing company. For example, “Oriental ….. Limited”.
From the above discussion, the thinks be keep in mind while choosing the name of your company. In my point of view, Consult a Company Secretary is a best way to choose perfect name for your company.