The changes in the company name rules are as follows :
The following names are no more considered undesirable,
The name which is not compatible with the principal objects of the company as set out in the MOA;
The proposed name is unclear or an abbreviated name such as ‘xyz limited’ or ’45K limited’ or abbreviated name based on promoter’s name ;
The name which is likely to produce a misleading impression about the scale of its activities which would be beyond the available resources.
The government has further added in the principal rules :
If a company changes its line of business is not required to change its name with it. Earlier, the company was required to change its name within a period of six months from the change of activities.
A company can use the name of persons other than promoters or their close blood relatives. There is no requirement of furnishing proof of relationship. Earlier, if the keyword used in the proposed name was the name of a person other than the promoters name(s) or their close blood relatives, NOC from such other person(s) was required with the application for the name. And, if in case the proposed name included the name of relatives, proof of relation was required.
The Registrar of Central Registration Centre (CRC) has been established by the Central Government, it has jurisdiction all over India. An application for the reservation of a name shall be made in Form No. INC-1, which may be approved or rejected by the CRC. The CRC will discharge and carry out the function of processing and disposal of application for reservation of names.
Earlier, the processing of the private limited company application was done by the respective offices of Registrar of Companies according to the jurisdiction they have.
It shall be noted that the processing and approval of the name proposed in e-form no. INC-29, continue to be done by the respective ROCs having jurisdiction over the incorporation of companies under the Companies Act, 2013.
Also, read the related topics:
- Types of Private Companies — Register private company
- How to incorporate your company within few days with the help of INC-29