MCA-restricted Company Name Terms

Company Name

Picking the perfect name for your company requires careful thought, considering do’s and don’ts. Your business name holds immense power, capable of shaping its success or downfall. The Ministry of Corporate Affairs (MCA) has specific rules, and some words are restricted. This article cover MCA’s Restricted Words for Company Names to guide your choice.

  • Before starting a company or LLP in India, MCA must approve your chosen name.
  • Using the RUN Form, you can propose up to two names in order of preference.
  • One will be chosen based on availability. If none fit, you can submit new options.
  • Companies might be rejected if their names include forbidden terms according to the Companies Incorporation Rules.
  • Adding “Limited” or “Public Limited” is crucial. For public limited companies, “Limited” comes after the name.
  • Private limited companies need “Private Limited” at the end. This rule doesn’t apply to Section 8 enterprises and government-owned ones.

Enumerated herein are words deemed restricted by the MCA: “Small Scale Industry,” “Board,” “Central,” “National Union,” “Commission,” “Statute,” “Development,” “Scheme,” “Minister,” “Court,” “Judiciary,” “Forest,” “Corporation,” “Nation,” “Bureau,” “Panchayat,” “Municipal Development Authority,” “khadi and Village Industries Corporation,” “Prime Minister,” “Chief Minister,” “Authority,” “Undertaking,” “Republic,” “Federal,” “Rashtrapathi Statue,” “Governor,” and “Statutory.”

Certain words are off-limits, including “Small Scale Industry,” “Board,” “Minister,” and more. Also, there are rules to follow:

  1. Words Needing MCA Approval: If your name involves terms like “insurance,” “bank,” “venture capital,” etc., you need approval from regulators like RBI, IRDA, SEBI, and MCA.
  2. Foreign Country or City Names: Adding foreign names is allowed if you prove a business connection.
  3. Words Indicating Structure: Words showing corporate structures like “LLP,” and “Partnership,” are restricted.
  4. Clear Language: If your business is about finance, the name should reflect it, like “Chit Fund” or “Investment.”

Remember, the first step in forming a company in India is getting your name approved by MCA. Not following Company (Incorporation) Rules, 2014 can lead to rejection. Be aware of restricted words, as using them will get your name rejected by MCA.

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