Do You Know MCA Restricted Words for a Company Name? Check

Choosing the correct company name would be important, provided its potential to shape the success of the company. In India, regulations are put into effect by the Ministry of Corporate Affairs (MCA), which prohibits certain names for businesses. This article provides an in-depth analysis of the MCA Restricted Words for Company Names.

There are several dos and don’ts to bear in mind while selecting a company name. Keeping these things in mind, choosing an appropriate name is important since a company’s name has the power to make or ruin an organization and because MCA company naming rules ban or outlaw some names.

Registration of Company Names Under MCA

The Ministry of Corporate Affairs (MCA) must first approve the name of the new entity before it can be used to establish a company or LLP (Limited Liability Partnership) in India. Promoter names can be listed in the RUN Form up to a maximum of two times. One of the suggested names would be approved if the company name was still available. The promoter will be invited to resubmit the application with fresh names if none of the names supplied are acceptable. The fact that a proposed business name contains words that are forbidden by the Companies Incorporation Rules is one of the most frequent justifications for rejecting it.

Particular Suffixes Would be Important

It is required to affix words with the suffixes such as limited or Public limited.

• The word limited should arrive after the name of the company when the business would get registered as a public limited company.
• A business name should be secure with the words Private Limited at its end that is registered as a private limited company.
• Essential information- Section 8 enterprises and government-owned companies would get exempted from the same law.

Below Mentioned Would be the MCA Restricted Words for a Company Name

A list of forbidden terms is provided below. No other words or concepts that have a comparable meaning in another language can be combined with these words.

Perspectives on MCA-Restricted Words

Here, we have defined the main perspectives on MCA-restricted words for company names.

MCA Approval-Demanding Words

When a proposed name comprises the words such as “insurance,” “bank,” “stock exchange,” “venture capital,” “asset management,” “Nidhi,” “mutual fund,” and others, the proper regulators, along with RBI, IRDA, SEBI, MCA, etc., should furnish their approval.

Names of Foreign Countries or Cities are Included in the Company Name

When a company name contains the name of a foreign nation or city, the name can only be granted if the promoters can demonstrate that they have strong business ties to the nation in question.

Read Also: All About New MCA Filing Form SPICe+ (SPICe Plus) for Company Registration

Business Organization Terms

Any word that represents a different kind of corporate structure or legal person, like cooperative, Trust, LLP, Partnership, Society, Proprietor, HUF, Firm, Inc., PLC, GmbH, SA, PTE, AG, etc., cannot be used in any part of a company name.

Use of Illustrative Language is Required

When the company’s main functioning would be financing, leasing, chit funds, investments, securities, or a combination of these then the company name should be informative of the concerned financial activity like Chit Fund, Investment, or Loan.

Conclusion:

When creating the company in India then you would be needed to propose and authorized the name by the Ministry of corporate affairs. When the norms of the Company (Incorporation) Rules, 2014 do not get satisfied then the proposed name might get dismissed. As mentioned previously, MCA limits some words and when the Business owner opts for the specific words then the MCA (Ministry of Corporate Affairs) shall dismiss the approval of the company name.