Finding a good name for your business is critical because you want it to be iconic and simple to remember. If you choose the wrong name for your product or service, you may have difficulty attracting customers. If your name is difficult to read or remember, your marketing materials will suffer as well.
Furthermore, you must choose a name that is simple to pronounce and spell. This helps people to remember what you do and how you can assist them in realizing their goals. You should also ensure that your company's name fits into a sentence without being too long or too short. Finally, use a company name search site to ensure you are not infringing on trademarked names.
Conditions to be followed while deciding the name:
Section 4 of the Companies Act, 2013, read with Rule 8 of the Companies (Incorporation) Rules, 2014, lays out the conditions that must be met when deciding on the name of the Company mentioned in the Memorandum. Some of the conditions are as follows:
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The last word of the Company's name must be "Limited" in the case of a Public Limited Company and "Private Limited" in the case of a Private Limited Company.
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For Section 8 companies, the name should include words such as foundation, forum, association, federation, chambers, confederation, council, electoral trust, and so on.
The name shall not be identical to or resemble, nor shall it be a popular or abbreviated description of the name of an existing company or limited liability partnership, if incorporated within India, or if incorporated outside India and the name is reserved with the Registrar.
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The use of the name is not a criminal offence under any law.
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Unless the permission of the Central Government has been obtained, the name should not contain any word or expression that gives the impression that the company is connected to the government.
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The company's name should not be based on an existing name in the following ways:
Joining or separating words, using different tenses, different phonetic spellings or spelling variations, misspelled words, addition of '.com', '.net', '.edu' etc internet related designations, addition of words like 'New', 'Modern', 'Shree' etc, different combinations of the same words (as in the preceding example), Hindi or English translation of the same name.
Under the following conditions, the company's name will be deemed 'undesirable':
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Any name or emblem specified in the Schedule to the Emblems And Names (Prevention Of Improper Use) Act, 1950, or any colorable imitation thereof, unless permission from the Central Government has been obtained.
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Unless the owner has provided consent, the Company's name contains the name of a registered trademark.
- The name contains words that are offensive to any group of people.
The Company's name, if it indicates objects, must be consistent with the objects specified in the Memorandum of Association.
Rule 8 of the Companies Incorporation Rules, 2014 lists the entire set of conditions that must be met. Before applying for registration, check the MCA website, www.mca.gov.in, to see if any companies with similar names are already registered.
What You Should Consider when choosing a name for your company?
There are numerous factors to consider when selecting a name for your business. Here are some words of advice:
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Make sure the name of your company makes sense to others and solves a problem.
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Avoid names that sound like popular brands, particularly those owned by other companies or people you know.
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Be wary of names that have racial or cultural connotations (for example, "Chinatown").
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Avoid names that sound like they were put together by a committee (for example, "Wave Clouds").
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Choose a name that is simple to say and remember, and that can be easily pronounced in multiple languages (e.g., Google).
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Consider how frequently you want people to use your company name in conversation; it should be memorable but not overly familiar.
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Check the availability of your proposed name on websites which can tell you if it's available and has been registered as a trademark.
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You should also look for similar names in the Indian and American markets, as well as other industries where your company may be operating.
You must have a question about "Can your Company Name Gets Rejected"?
You must have a question about "Can your Company Name Gets Rejected"? You enter the website URL and wait for the results. However, in some cases, companies are rejected when they try to register their business name for a variety of reasons, such as trademark infringement or improper keyword use.
There are numerous reasons why your company name may be rejected, but the following are the most common:
1. It is too similar to the name of another company.
The name is too similar to that of another company. For example, If you had a company called "Samsung Inc," another company called "Samsung Inc" would be rejected because it is too similar.
2. It's Too Broad
The name is too common or generic. For instance, if you have a company called "ABC Company" and another called "BAC Company," both will be rejected because they are too familiar in the industry. For the first time, avoid abbreviations, but don't go for something that's overly long either.
3. The Name Isn't Unique Enough
The words in your name are not distinctive enough. If your company is called "CCL," another called "CCL2" will most likely be rejected.
4. It's far too long.
A company name should not be more than eight characters long because most people can't remember and may have difficulty reading longer names. Longer names may also be difficult to type into search engines and other websites. If your company name is less than five characters long, consider using a nickname or an acronym instead of a full name.
5. On the other hand, it's far too short and simple.
If you have a short name that sounds like a brand or product name, potential investors may be confused because it doesn't tell them much about what your business does or who it serves. It also limits the amount of capital you can raise with such a short name, unless it is associated with an existing brand.
6. It does not include the company's keywords.
Make sure your company name includes words that describe who you are as a company: "website design" or "website development" would be better than "Website Designers, Inc."
7. It's Culturally Inappropriate or Stereotypical
Choosing a stereotypical or offensive name is the quickest way to have it rejected. Even if your company helps disabled people or a specific culture, it's best not to include their names in the name.
How to check if your company name has been taken or not?
Before registering a trademark, make certain that your proposed mark will not infringe on any existing or pending trademark registrations. To do so, use the same mark to conduct an internet search for the other party's name. If the other party has registered a trademark, you may not use it without the other party's authorization.
Assume you discover that someone else has registered a trademark with the same or similar spelling and/or pronunciation as yours. In that case, it's likely they've already secured their rights to the same mark.
Three great tips for choosing your company name
Here are the first three things we thought you should consider when choosing a name for your company:
1. Maintain the Relevance of Your Name
Buzzwords like Lazarus, Icarus, and even Adam sound appealing, but they are mostly reserved for large conglomerate groups that do not need to advertise themselves using their names. On the other hand, your company needs all the exposure it can get, and it won't get it with a name that says nothing about what you do.
2. Register Your Domain Name Right Away
Finally, the most important tip that many new business owners overlook is the importance of registering your domain name on time. Even if you only decided on a name a few days ago, the domain could be purchased by the most unlikely of people.
3. Use a Company Name Availability Search Site
To see if your company name is available, use a company name search website. This will help you determine whether the name you chose for your startup is available and whether it is appropriate for your specific business. This step is critical because it can help you avoid potential stumbling blocks when starting your business.
The main benefit of using such sites is that they offer information about the exact status of a given company name, which means you won't have to deal with any uncertainties when launching your own venture.
How CCL can help you with your company name search?
It goes without saying that you should conduct a trademark search before starting your business. Still, it's upsetting to finally settle on a name for your company (and possibly even register it) only to discover that another company already owns it. A good search will take time, but it is well worth the effort; however, the Compliance Calendar LLP team can assist you with it; the best thing to do is consult; otherwise, you may be unpleasantly surprised one day when a cease-and-desist letter appears in your mailbox.
