How To Keep New Private Limited Company or LLP Name
The name of the business is significant as it connects with the potential consumers and must leave a lasting memory of the company in the minds of customers. Apart from the general business considerations, you should also be careful and check in detail for any possible match with an existing business name or trademark. Before the founders start deliberating the proposed name, we suggest the following three essential elements to look in to, that will help in deciding the name of the company
- The name should be unique and must contain business activities.
- The business activity should not be the first word in the name.
- The proposed name should not violate someone else trademark.
- The name must meet the requirements of the Companies Act, 2013
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1. Business Activities in Name
A company or LLP is always registered for a lawful purpose, and now the question is, can I incorporate a company with more than one category of activities, or is it necessary for the name of the company to carry the activities. The answer is that the name of the company should reflect the proposed business activities of the company, and only one category of business activity is allowed to be pursued in a new company.
When the application for the company name is filed, you have to select the main division of industrial activity of the company from a list which gets populated. You have no choice but to choose only one category. In the last section of this blog, we have provided the list of activities, and out of them, only one has to be selected.
Hence it can be concluded that the name of the company should reflect the proposed business activities (Broadly), and the company or LLP can be incorporated only for one activity and not multiple activities.
2. Business Activity As the First Name.
The Business Activity itself should not be the first name of the proposed name of the company or the LLP. For example, a company with a name like Courier Services Private Limited shall not be allowed. In contrast, the title with a unique prefix like FedEx Courier Services Private Limited is permitted. However, the names starting with a coined word which have the reference to the objective is some times allowed.
3. Trademark Considerations While Selecting the Name of a Company
A word, Business Name, Logo, Device, etc. which can identify the origin of goods or services is known as a trademark. Under the trademark law, there is a specific provision protecting the lawful owner of the brand against any potential infringement, and the courts in India awards hefty compensation for a breach of the trademark by any unauthorized use. Hence before considering any name, please check if it violates someone else brand. Setupfilling.com is providing a free trademark search facility in India. Please click to request Trademark Search.
Further note that the companies act, 2013, has a specific provision under rule 8 of the incorporation rules. A name is undesirable if it includes the name of a registered trademark or a trademark, which is subject to an application for its registration unless the consent of the owner or applicant is received.
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