HOW TO CHOOSE NAME FOR COMPANY?

A very initial and important step is to choose a name for the business and apply for its registration. But choosing a correct name is not so easy. There are some rules framed by the government under the Companies Act, 2013, which the applicant needs to follow before making application to the Registrar. Section 4(2) & (3) and Rule 8 of Companies (Incorporation) Rules, 2014 is applicable for the name of the company only.

As per Section 4(2) of the Companies Act, 2013: the name of the company shall not:

  • Be identical with and resemble too nearly to the name of the existing company registered under this Act or any other previous law
  • Its use by the company:-
    • Will constitute an offence under any law for the time being in force; or
    • Is undesirable in the opinion of Central Government

As per Section 4(3) of the Companies Act, 2013: Without prejudice the provision of section 4(2), the company shall not be registered with the names which contain-

  • Any word or expression which is likely to give the impression that the company is involved in any patronage activity of the Central Government, State Government, local authorities, etc. or
  • Such words or expressions as may be prescribed.

Rule 8 of Companies (Incorporation) Rules, 2014: It contains the provisions relating to undesirable names

  • In determining whether a proposed name is identical with another, the difference on account of the following shall be disregarded:-
  1. The words like Private Limited, Pvt Ltd, (P), Limited, Ltd, LLP, etc;
  2. Words at the end of the name- company, and company, co. corp, etc;
  3. Plural version of any word appearing in the name of the company;
  4. Type and case of the letter, the spacing between letters and punctuation marks;
  5. Joining the word together or separating them doesn’t make any difference;
  6. Use of a different tense or number of the same word doesn’t make any difference;
  7. Using different phonetic spelling or spelling variation shall not be considered as any difference
  8. Mispelt words whether intentionally mispelt or not;
  9. The addition of internet related words like, .com, .org, .in, .co, .edu, etc;
  10. The addition of a word like New, Modern, Shri, Shree, Sai, Jai, Sir, etc; does not make any distinguishable identity if the applied name is similar or identical with an existing company
  11. Different combination of a word like “(NAME) Medical and Healthcare Private Limited” by “(NAME) Healthcare and Medical Limited” is not considered as a difference
  12. If the proposed name is the translation word or Hindi or English
  •   The name shall be considered undesirable, if:
  1. It attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950)
  2. It includes the names of a trademark registered or applied for registration under Trademark Act, 1999 unless the consent of the owner or the applicant for registration has been taken or produced by the promoters.
  • It includes any word or words which are offensive to any section of the people.
  1. The name shall also be considered undesirable, if-
  2. the proposed name is identical with or too nearly resembles the name of a limited liability partnership,
  3. [Omitted]
  • the company’s main business is financing, leasing, chit fund, investments, securities or a combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.;
  1. it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;
  2. the proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar:

Provided that if a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available;

  1. any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, etc.,
  • the proposed name contains the words ‘British India’;
  • the proposed name implies association or connection with embassy or consulate or a foreign government;
  1. the proposed name includes or implies association or connection with or patronage of a national hero or any person held in high esteem or important personages who occupied or are occupying important positions in Government;
  2. [Omitted]
  3. the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding and a period of two years have not elapsed from the date of such dissolution:

Provided that if the proposed name is identical with the name of a company which is struck off in pursuance of action “or under section 560 of the Companies Act, 1956” then the same shall not be allowed before the expiry of twenty years from the publication in the Official Gazette being so struck off;

  • it is identical with or too nearly resembles the name of a limited liability partnership in liquidation or the name of a limited liability partnership which is struck off up to a period of five years;
  • the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant;
  • the proposed name includes the word “State”, the same shall be allowed only in case the company is a government company;
  1. 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 name is only a general one, like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd., and not Lakshmi Silk Manufacturing Co. Ltd;

  • [Omitted]
  • the proposed name includes the name of any foreign country or any city in a foreign country, the same shall be allowed if the applicant produces any proof of the significance of business relations with such foreign country like Memorandum Of Understanding with a company of such country:

Provided that the name combining the name of a foreign country with the use of India like India Japan or Japan India shall be allowed if, there is a government to government participation or patronage and no company shall be incorporated using the name of an enemy country. Explanation.- For the purposes of this clause, enemy country means so declared by the Central Government from time to time.

  •  Omitted
  • Omitted
  • The applicant shall declare in affirmative or negative ( to affirm or deny ) whether they are using or have been using in the last five years, the name applied for incorporation of company or LLP in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity and if, yes details thereof and No Objection Certificate from other partners and associates for use of such name by the proposed Company or LLP, as the case may be, and also a declaration as to whether such other business shall be taken over by the proposed company or LLP or not .
  • The following words and combinations thereof shall not be used in the name of a company in English or any of the languages depicting the same meaning unless the previous approval of the Central Government has been obtained for the use of any such word or expression-

(a) Board;

(b) Commission;

(c) Authority;

(d) Undertaking;

(e) National;

(f) Union;

(g) Central;

(h) Federal;

(i) Republic;

(j) President;

(k) Rashtrapati;

(l) Small Scale Industries;

(m) Khadi and Village Industries Corporation;

(n) Financial 8[Omitted] Corporation and the like;

(o) Municipal;

(p) Panchayat;

(q) Development Authority;

(r) Prime Minister or Chief Minister;

(s) Minister;

(t) Nation;

(u) Forest corporation;

(v) Development Scheme;

(w) Statute or Statutory;

(x) Court or Judiciary;

(y) Governor;

(z) the use of word Scheme with the name of Government (s) , State , India, Bharat or any government authority or in any manner resembling with the schemes launched by Central, state or local Governments and authorities; and

(za) Bureau

  • For the Companies under section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc. Every company incorporated as a “Nidhi” shall have the last word ‘Nidhi Limited’ as part of its name.
  • The names released on change of name by any company shall remain in database and shall not be allowed to be taken by any other company including the group company of the company who has changed the name for a period of three years from the date of change subject to specific direction from the competent authority in the course of compromise, arrangement and amalgamation.

How To Start Online Business In India?

Online businesses are receiving much more recognition and different resources to flourish in the past few years. Numerous online business start-ups have emerged as some of the multi-baggers in this sector. Online business can be of any kind and you can start it from anywhere and anytime you want to. In India, starting an online business has a lot of potential and amazing scope to achieve big success.

Are you planning to start an online business? Yes? Then you would want to know about all the important details and steps which are required to be followed. In this article, we will be talking about how to start an online business in India and how you can establish yourself successfully.

Why Start An Online Business?

If you are wondering whether it would be a right decision to start an online business or not, then you must read the following section, where we will discuss with you why you should start an online business.

  • An online business can be of great potential. If you can promote and market your brand the right way, an online business has much more potential to grow than an offline business. They are not limited to only a particular area or state. The people from all over the world can access your websites.

  • An online business can be started without much capital in hand. When you plan to start any kind of business, you require a significant amount of capital for expanding and running the business. But an online business does not require that much money right at the beginning. Therefore you can start an online business without many resources as well.

  • Online businesses can be managed virtually from anywhere you want and at any time. You will only need an electronic device like a mobile phone, laptop or desktop to open your website and manage it according to your needs. Therefore many people shift to online businesses because they are much easier to manage than the ones offline. So you have the freedom to access and run your business at your will.

  • You have much more flexibility and freedom in terms of location or time. It is not necessary for you to choose a particular location to start your business because it is the internet where you are going to put up your business and it is accessible to everyone. You can arrange your time as per your choice and manage the website when you want to.

Therefore as you can see that there are so many reasons because of which online business has grown so much in the past few years. Now we will move to the important steps which are required to start a business.

How To Start The Online Business?

If you have read the article until this point then you are aware of why you should start an online business. Now we will discuss the important steps which are required to start an online business. Read through the following steps carefully because each one of them is equally important in the whole process.

  • Buying A Domain

The first step which you are required to carry out is to buy a domain. There are several domain agencies present in the market. Getting a domain requires the registration of your name and that of your business with an organization called ICANN through a domain name registrar. You will have to pay a registration fee for the domain name you choose. The moment you pay the fee, you will have the right for that particular domain for exactly one year. You will be able to renew your domain again after a year or you can also buy it for more than a year depending on the domain. Once you have your own domain you can run your website without any issues of copyrights or licenses.

  • Building The Website

Building the website is the next step which you must follow very thoroughly because it is the very foundation of your online business. After you have bought the domain you will be required to build a website around it. You will need to host your website on a particular hosting site.Different hosting plans provide you with different kinds of benefits.

After you get the website hosted, you will need to customize and design it according to your own choice. Try to create an attractive and useful website so that it is convenient for the people while they use the website. Your website is the face of your business, therefore, make sure it reflects the type of business you are conducting. Your website should have quick loading times and fast server response for the best performance to the users.

Once you have registered your domain and built a website, you will need to register your company under the government rules and policies. It is a complicated process and therefore you will need to follow all the steps very carefully. Here are the important steps which are required to follow to register your online company and make sure it is legally authorized to carry out any kind of business.

  • The first step is to choose a correct and unique name for your company registration and then make application through RUN web-service to the MCA for its approval. It hardly takes two or three days.

  • Once the name is approved and allotted by the government it is valid for only 20 days and all the process for registration must be completed within these 20 days. After name approval, all the documents will be prepared for company registration and then you will be required to apply for Digital Signature of Directors and Shareholders of The Proposed Private Limited Company (Pvt. Ltd.) in India. This is an important step because without DSC you won’t be eligible to sign the application form. That is why DSC is the most important part of company registration.

  • Once all the documents and DSC registration is completed you need to submit the application form through the professionals like Company Secretary or Chartered Accountant or Cost Accountant or an Advocate online on MCA portal after their as well as professional’s digital signature, remember there is no physical filing allowed for company registration, all the applicant who desires to incorporate his or her business by company registration need to file an application form only through the professionals electronically.

  • Once your form is submitted to the concerned ROC in whose jurisdiction you want to incorporate your company, the Registrar will examine your application form and verify the authentication of your all documents. In an electronic time now there is no physical verification done by the Registrar for company registration. If your all documents and application are correct the ROC will issue Certificate of Incorporation.

  • Now you will need to apply for GST as well if your company meets the regulations of the GST procedures.

So this is how you are going to register your company under the government rules and regulations. It is very important that you follow the steps which we have mentioned because if you do not register your online company under the government policies then you can face a lot of legal problems later on.

  • Annual Compliances After Registration

After you have registered for your online company, you are required to maintain some compliances. These are called annual compliances.

  • Appointment of Auditor- The first Statutory Auditor has to be appointed within 30 days of incorporation in the first board meeting.

  • Holding Board Meeting- The first meeting must be conducted within 30 days of the incorporation. There must be a minimum of 2 meetings, one in each half calendar year. A minimum gap of 90 days is required between 2 of the meetings.

  • Holding Annual General Meeting- One Annual General Meeting is required to be conducted. There should be a maximum gap of 15 months between 2 consecutive AGMs.

  • E- Forms Filing Requirements also compulsory.

There are some other compliances as well which you can know about by contacting the government officials or visiting the online registration website.

As you can see that carrying out a business online may be easy and may have a huge potential, but at the same time, there are some important legal processes which you must complete before you can start your business. These legal processes are very important in India and any kind of failure to do so can prove to be very fatal.

Final Verdict!

If you have read the article until this point then you are now aware of the different processes and steps which you must follow so that you can legally carry out your online business in India. Make sure that you read carefully about all the steps that we have discussed here so that you do not miss out on any important information or relevant details related to the steps. We hope that this article will help you to gain a lot of potential productivity and profits in your online business. You can also contact www.registerexperts.com which deals with such registration and other legal processes if you think that carrying out these steps is too complicated for you.

If you can take care of your business the right way by following important and technical strategies then you can establish yourself in the online market very quickly. The online business sector is huge and you have a great window of opportunity to make it towards the successful side of it.