In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.
Contents of Companies (Incorporation) Fifth amendment rules, 2019
The following notifications were issued by Companies Incorporation are as follows-
- The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
- The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
- The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.
The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-
- Rule 8A
- Rule 8B
What is Rule 8A?
These rule specifies the list of undesirable names, and
What is Rule 8B?
These rules are for the word or expression which can be used only after obtaining a previous approval of central government.
Key Highlights of Company incorporation Fifth amendment, 2019
The following matters are to be disregarded while comparing the names
- The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
- The plural or singular forms of words in one or both names.
- Use of different tenses in one or both names.
- The order of words in the names.
- Addition of the name of the place to a current name which does contain name of any place.
- addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.
Provison
Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.