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MCA (Ministry of Corporate Affairs) Name Approval is the official process of securing a unique business name before company registration in India. It ensures that the chosen name adheres to legal guidelines under the Companies Act, 2013, and is not already taken or trademarked by another entity. The name approval is granted through the MCA’s RUN (Reserve Unique Name) or SPICe+ form, which is a mandatory step before incorporating a Private Limited Company, LLP, or OPC. MCA Name Approval prevents future legal disputes, enhances brand identity, and is essential for a smooth company incorporation process.
If you’re starting a company, getting MCA Name Approval early can save time and prevent legal complications. Udyog Suvidha Kendra simplifies the process, ensuring quick and hassle-free approval.
When selecting a company name, it must comply with the Companies Act, 2013 to ensure legality and uniqueness. The key rules include:
1. Uniqueness : The proposed name should not be identical or too similar to an existing company or LLP registered with the Ministry of Corporate Affairs (MCA).
2. Relevance : The name must align with the business activities mentioned in the company’s Memorandum of Association (MoA).
3. Legal Compliance : It should not violate any existing trademarks or intellectual property rights.
4. No Misleading Terms : The name should not misrepresent the company’s purpose, structure, or activities.
5. Mandatory Suffixes : Depending on the business type, specific words are required, such as:
"Private Limited" (Pvt Ltd) for private companies
"Limited" (Ltd) for public companies
"LLP" for Limited Liability Partnerships
Choosing the right name ensures seamless MCA Name Approval and avoids rejection.
MCA has strict guidelines on words that cannot be used in company names without special approval. These include:
1. Government-Related Terms : Words like "Union," "Central," "State," "Ministry," or any term suggesting government affiliation require official approval.
2. Offensive or Illegal Terms : Words that are obscene, inappropriate, or violate public policy are not allowed.
3. Misleading Words : Any word that falsely suggests a connection with a government body, international organization, or royal family is restricted.
4. Generic & Common Words : Generic words like "India," "International," or "Corporation" may require additional justification and supporting documents.
5. Financial & Regulated Terms : Terms like "Bank," "Insurance," "Stock Exchange," or "Mutual Fund" require approval from respective regulatory authorities like RBI or SEBI.
Avoiding restricted words ensures faster approval and reduces the chances of rejection during the MCA Name Approval process.
To get MCA approval, your company name must be:
1. Distinctive & Non-Generic : Avoid common industry terms and generic words that can cause confusion with existing businesses.
2. Legally Available : Check for trademark conflicts before applying to prevent disputes and legal issues.
3. Not Identical to an Existing Business : Even slight spelling changes or plurals of existing company names may get rejected.
4. Industry-Relevant : The name should match the nature of the business to provide clarity on its operations.
5. Compliant with MCA Guidelines : Ensure the name follows all naming rules under the Companies Act, 2013 for approval.
Select a distinct name following Companies Act, 2013. Ensure it’s not identical to existing companies listed on the MCA portal to avoid rejection.
Use MCA Name Availability Tool and IP India website to confirm your desired name isn’t already registered or trademarked, preventing future legal or registration issues.
Gather proposed names (2 options), business objectives, name significance (if needed), and the applicant’s Digital Signature Certificate (DSC) for submission.
Submit SPICe+ Part A (for companies) or RUN form (for LLPs) via the MCA portal to reserve your business name based on your structure.
The ROC reviews for name similarity, legal compliance, and trademark conflicts. If all rules are met, approval is typically granted within 2–5 working days.
On approval, get an email with the Name Approval Letter (valid for 20/60 days). If rejected, revise the name and reapply.
Use SPICe+ Part B to register the company. Complete the incorporation process before the name approval expires to avoid re-filing.
Below are the essential documents required to obtain approval for your company name from the Ministry of Corporate Affairs (MCA).
Submit up to two name choices that comply with MCA naming guidelines.
A brief document outlining the company's objectives and core business activities.
Mandatory for authorized signatory to digitally sign and submit the application.
Identity proof of proposed directors to verify their details with MCA.
Submit a utility bill or rental agreement for official company address verification.
Required if the proposed name includes any registered trademark or brand name.
Mandatory when using a name similar to an already registered business.
Applicable for existing companies planning to modify their registered name officially.
The cost for MCA name approval is ₹1,000 per application, which allows submission of up to two name choices. If both names get rejected, businesses must reapply with a new application and fee. Additional legal or professional consultation fees may apply if businesses seek expert assistance in choosing a unique and compliant name.
In cases where a name needs to be resubmitted due to objections, applicants may have to modify and resubmit their choices, which could lead to extra costs. To avoid multiple rejections, it’s advisable to conduct a preliminary name search before applying.
The Ministry of Corporate Affairs (MCA) usually processes name approval applications within 2–5 working days. However, processing times may vary based on:
To ensure faster approval, businesses should verify their name availability using the MCA Name Search Tool, cross-check trademark registrations, and comply with MCA’s naming guidelines before submission.