One of the most crucial issues that has arisen with the name approval segment, especially for new companies who has already been running a sole proprietary business or an unregistered partnership business, and wishes to stick on to the same business name while forming a private limited company. We have shortlisted some of the major yardsticks on which MCA rejects the desired name, and the basis thereon, which we hope that our readers who looks to register a private limited company would appreciate. Here are the common reasons for rejection of name:

● Proposed name is not according to the activities described in Main Objects

● Proposed Name is not available in view of the existence of identical or closely resembling companies.

● Proposed name is too general without any distinct word or identity

● Keywords like Industry/ Udyog, Enterprises, Products, Business, manufacturing may be considered when the company proposes to deal in various business activities/ the company is already carrying on various business activities (in case of change of name). As your business activity is in particular trade said keywords cannot be allowed

● Proposed name does not include suitable prefix

● Words like International, Hindustan, India, Bharat, Continental, Asiatic, Corporation will not be allowed unless the scope and scale of business of the proposed company justify the use of words.

● Proposed name includes words like National, Central, Union, Federal etc which are considered as undesirable

● Please furnish No Objection by way of Resolution of the Board of the Group of Companies

● Proposed name indicates the partnership or the patronage of any National Leader or of Government. Please furnish necessary evidence  in this regard to consider the matter further

● In case of company taking over business of partnership firm please furnish a copy of the Partnership deed, latest Assessment order, Balance Sheet of past two years and also Profit and Loss account. An affidavit signed by all the partners showing that the main objects of the Company will be to take over the business of present firm and thereafter the firm will be dissolved.