Company Name Rules in India: Authorised Capital and Restricted Words
Company name approval in India is governed principally by Section 4 of the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. Older guidance that prescribed fixed authorised-capital amounts merely for using words such as "Corporation", "International", "India", "Industry", "Enterprises" or "Products" should not be treated as the current company-name approval rule.
Section 4 of the Companies Act, 2013
Section 4 of the Companies Act, 2013 governs the memorandum of a company and contains important rules for company names. Under Section 4(2), a proposed name must not be identical with or resemble too nearly the name of an existing company. It also must not be a name whose use would constitute an offence under any law or which the Central Government considers undesirable.
Section 4(3) further restricts names containing words or expressions that are likely to create an impression of connection with, or patronage of, the Central Government, a State Government, a local authority, or specified statutory bodies, unless the required previous approval has been obtained.
Is a fixed authorised capital required for particular words?
Under the current incorporation framework, company-name approval is not based on the old schedule of fixed authorised-capital thresholds for generic keywords. A company having share capital must state in its memorandum the amount of share capital with which it is to be registered and its division into shares, as required by Section 4(1)(e). That requirement is different from an automatic rule that a particular word in the company's name requires a prescribed rupee amount of authorised capital.
Accordingly, the historical figures such as Rs. 5 crore for "Corporation", Rs. 1 crore for certain uses of "International" or "Industry", and other keyword-based amounts previously displayed on this page should not be relied upon for a new incorporation application.
Rule 8: Names resembling existing companies
Rule 8 of the Companies (Incorporation) Rules, 2014 provides the framework for deciding when a proposed name resembles too nearly the name of an existing company. The comparison disregards specified differences that do not make a name sufficiently distinctive, such as certain company-status words, singular or plural forms, letter case, spacing, punctuation and specified variations.
Adding words such as "Private", "Limited", "Company", "Corporation" or similar expressions ordinarily cannot by itself turn an otherwise identical name into a sufficiently different company name.
Rule 8A: Undesirable names
Rule 8A addresses circumstances in which a proposed company name is treated as undesirable. In practical terms, applicants should ensure that the proposed name is distinctive, legally permissible and consistent with the objects proposed for the company.
- A name should not improperly conflict with an existing company or LLP name.
- Trademark rights must be considered. A proposed name containing a registered trademark may require the consent of the trademark owner where applicable.
- A name should not misleadingly suggest an activity that is inconsistent with the company's proposed objects.
- Names implying regulated financial activities such as finance, investment, insurance or similar activities may be scrutinised against the proposed objects and applicable regulatory requirements.
- Certain geographical, governmental or otherwise sensitive expressions are subject to the specific conditions in the incorporation rules.
Rule 8B: Words requiring previous approval
Rule 8B identifies words and expressions for which previous approval of the Central Government is required in a company name. MCA guidance includes expressions capable of suggesting governmental, statutory or public authority status. Examples include specified uses of words such as "Board", "Commission", "Authority", "National", "Union", "Federal", "Republic", "President", "Rashtrapati", "Municipal", "Panchayat", "Development Authority", "Prime Minister", "Chief Minister", "Minister", "Nation", "Statute", "Statutory", "Court", "Judiciary", "Governor" and "Bureau", among the expressions covered by the rule.
Applicants should verify the latest text of the rules before filing because the precise restriction and approval requirement depends on the proposed wording and context.
Company names and trademarks
Name availability on the MCA system does not eliminate the need to consider trademark rights. The incorporation rules specifically take registered trademarks into account when determining whether a proposed name is undesirable. Applicants can separately search the Trade Marks Registry public search before making a name application.
The proposed name should match the business objects
MCA guidance advises applicants to ensure that words indicating a particular activity correspond with the proposed objects of the company. For example, names using expressions associated with finance, investment, capital, holding or insurance can face objection where the proposed objects do not support that activity or where a sector-specific approval is required.
This is especially important for businesses regulated by authorities such as the Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India or other sector regulators.
How to apply for a company name
Section 4 permits an application to the Registrar for reservation of the name of a proposed company or a new name for an existing company. Incorporation and name-reservation services are available through the Ministry of Corporate Affairs portal, including the SPICe+ incorporation process.
- Choose a distinctive name connected with the proposed business objects.
- Search existing company and LLP names and consider similar or phonetically similar names.
- Check relevant registered trademarks.
- Review Rules 8, 8A and 8B for similarity, undesirable-name and approval restrictions.
- Obtain sectoral, trademark-owner or Central Government approval where the law requires it.
- Ensure the proposed objects support activity-specific words used in the name.
- File the applicable name-reservation or incorporation application on the MCA portal with accurate information and supporting documents.
Incorrect information in a name application
Section 4 contains consequences where a reserved name was obtained by furnishing wrong or incorrect information. Applicants should therefore avoid unsupported statements, misleading declarations or incomplete disclosures when seeking name reservation.
Current legal position at a glance
| Issue | Current position |
|---|---|
| Fixed capital solely because a generic keyword is used | The historical keyword-based capital table should not be treated as the current name-approval rule. |
| Name identical or too similar to an existing company | Restricted by Section 4 and Rule 8. |
| Undesirable proposed name | Examined under Section 4 and Rule 8A. |
| Government or specified restricted expressions | May require previous approval under Section 4 and Rule 8B. |
| Registered trademark in proposed name | Trademark rights and required consent must be considered under the incorporation rules. |
| Activity-specific words | The name should be consistent with the company's objects and applicable sectoral regulation. |
| Authorised share capital | For a company having share capital, the memorandum states the capital with which the company is registered; this is distinct from the obsolete keyword-capital table. |