Companies (Name Availability) Rules, 2011 - Notified
THE Government has notified the Companies (Name Availability) Rules, 2011. Salient features of the Rules are:-
++ While applying for a name, the applicant has to certify that he has searched the website of the Ministry of Corporate Affairs for checking the resemblance of the proposed name with companies already registered.
++ The proposed name(s) is/are not in violation of the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time.
++ The name if made available, is liable to be withdrawn anytime before registration of the company, if it is found later on that the name ought not to have been allowed.
++ Even after incorporation of the company, the Central Government has the power to direct the company to change the name under section 22 of the Companies Act, 1956, if it comes to his notice or is brought to his notice through an application that the name too nearly resembles that of another existing company or a registered trademark.
++ The use of a different tense or number of the same word does not distinguish one name from another.
++ The addition of an internet related designation, such as .COM, .NET, .EDU, .GOV, ORG, .IN does not make a name distinguishable from another, even where (.) is written as ‘dot'.
++ 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.
++ 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.
Guidelines for using Key Words in the name of a Company:
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, InterContinental, 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 |