Starting a business in India is a very exciting and growing journey, but one of the most crucial early steps is choosing the right company name. A company’s name is not just a label; it reflects your brand identity, values, and the image you want to project to your audience. However, before you can register your business, you must ensure that the name you’ve selected is available and not already in use. This process is known as company name search.
In this guide, we’ll walk you through everything you need to know about performing a company name search in India, the steps involved, tips for choosing the right name, and legal guidelines you must follow.
Why Is Company Name Search Important?
A company name search ensures that your desired and required business name is unique, novel and not already registered by another entity. Here's why it's important:
- Legal Protection: Registering a unique company name protects you from legal disputes.
- Brand Identity: A distinct name sets you apart from competitors.
- Registrar Approval: The Ministry of Corporate Affairs (MCA) will not approve names that are identical or too similar to existing ones.
- Domain Availability: Early name search also helps in securing matching domain names and social media handles.
Where to Perform a Company Name Search
The official portal for company name search in India is provided by the Ministry of Corporate Affairs (MCA). You can check name availability through the MCA’s online tool called MCA Name Search or MCA21 portal.
Website: https://www.mca.gov.in
Steps to Check Company Name Availability on MCA Portal
Here’s a step-by-step guide to conducting a company name search using the MCA portal:
Step 1: Visit the MCA Website
Go to https://www.mca.gov.in. The MCA is the official regulatory body for company registrations and other related services in India.
Step 2: Navigate to 'MCA Services'
Click on the ‘MCA Services’ tab in the top navigation bar, after that scroll down to 'Company Services'.
Step 3: Select 'Check Company Name'
Under ‘Company Services’, click on ‘Check Company Name’ or ‘RUN – Reserve Unique Name’. RUN is an online form that allows you to submit a proposed company name for approval.
Step 4: Enter the Proposed Name
Enter the company name you intend to use. It’s recommended to include at least two names in order of preference. The system will show you if the name is available or already taken.
Step 5: Check for Similar Trademarks (Optional but Recommended)
Go to the IP India website to ensure that your chosen name is not registered as a trademark by another business. This step prevents legal issues related to intellectual property rights.
What Happens If Your Name Is Available?
If the company name search confirms availability, you can proceed with name reservation through the RUN (Reserve Unique Name) service. You’ll need to create an account on the MCA portal, pay a small fee, and submit your name for official approval.
If approved, then the name will be reserved for 20 days, during which you must complete the registration process.
What If Your Name Is Not Available?
If your name is not available, the MCA portal will notify you with a reason such as:
- Name already exists
- Similar to an existing company or trademark
- Contains restricted words
- Violates naming guidelines
In that case, you’ll need to choose a different name and perform another company name search.
Rules and Guidelines for Naming a Company
The MCA follows a strict set of naming guidelines under the Companies (Incorporation) Rules, 2014. Here are the key points:
- Uniqueness: Your name must be distinct from existing company names and trademarks.
- Suffix Requirement: Depending on the type of company, the name must end with Private Limited, Limited, LLP, etc.
- No Offensive Terms: Names that are obscene or violate public morality are not allowed.
- Avoid Government-Sounding Names: You cannot use names that suggest a connection with the government or international bodies unless authorized.
- Restricted Words: Terms like ‘Bank’, ‘Exchange’, ‘Stock’, etc., require special approval from regulatory authorities.
Tips for Choosing the Right Company Name
Performing a company name search is just one part of the naming process. Here are some helpful tips to choose the right name:
- Be Meaningful: Choose a name that reflects your business values and services.
- Easy to Remember: Simple, short, and easy-to-pronounce names stick better in customers’ minds.
- Future-Proof: Pick a name that won’t limit your expansion into other markets or product lines.
- Check Domain Availability: Make sure the domain name (e.g., .com, .in) is available for a matching online presence.
- Social Media Handles: Check availability on platforms like Facebook, Instagram, and LinkedIn.
Common Mistakes to Avoid
- Skipping Trademark Search: Even if MCA approves the name, a registered trademark owner can still sue you.
- Choosing Generic Terms: Names that are too generic may be rejected or fail to stand out.
- Ignoring Guidelines: Not adhering to MCA naming rules can result in rejection and delays.
- Last-Minute Checks: Always perform the company name search early to avoid redoing documentation.
Conclusion
Choosing the right company name is one of the foundational steps when starting a business in India. Conducting a process of proper company name search through the official MCA portal ensures that your desired name is unique, legally valid and ready for company registration. By following the required steps outlined above and adhering to naming guidelines, you can avoid delays, legal hassles and various other complications and it helps to build a strong identity for your brand.
Remember, your company name is more than just a registration requirement — it’s your brand’s first impression. Make it count!
