Process of Name Approval for a Public Limited Company in India

Introduction
Selecting and securing a company name is one of the most important initial steps in the incorporation of a Public Limited Company in India. A company’s name reflects its brand identity and legal status and must comply with the regulations outlined in the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) governs the process and provides digital platforms for applying and reserving the name. This article explains the detailed process involved in obtaining name approval for a Public Limited Company.

Understanding Legal Guidelines for Company Names
Before applying for name approval, it is crucial to understand the naming guidelines laid down by the MCA. The proposed name should not be identical or too similar to the name of an existing company or LLP. It should not violate any registered trademarks, be misleading, or contain offensive or prohibited words. The name must end with the words “Limited” to denote that it is a Public Limited Company.

Name Availability Search on MCA Portal
The first step in the name approval process is conducting a preliminary search for name availability. This can be done through the MCA’s official website, which provides a free search tool. Entrepreneurs should check for any existing companies, LLPs, or trademarks with similar names. This step helps avoid rejections and saves time during the application process.

Preparation of Name Options
Applicants are advised to prepare at least two unique and meaningful name options that reflect the nature of the business or company objectives. Choosing distinctive and descriptive names increases the chances of approval. If the proposed name contains certain keywords like “National,” “Bank,” or “Exchange,” additional approvals or justifications may be required.

Filing Name Approval through SPICe+ Part A or RUN
There are two methods to apply for name approval:

• SPICe+ Part A: This is part of the integrated company registration form. Applicants can reserve the name directly while submitting incorporation details. If the name is approved, they can proceed to Part B of the SPICe+ form for full incorporation.
  
• RUN (Reserve Unique Name): This standalone service is used for reserving a name before filing the incorporation form. RUN is often used when promoters want to secure a name before preparing the rest of the documentation. Only one name can be proposed in a RUN application, and no resubmission is allowed if rejected.
  

Documentation for Name Approval
The name application must be supported by brief details of the proposed business activities. If the name includes a trademark or specific terms, supporting documents such as a no-objection certificate (NOC) from the trademark owner or sectoral approvals may be required. A declaration confirming that the name complies with the Companies Act must also be submitted.

Review and Approval by the Registrar of Companies
Once the application is submitted, the Registrar of Companies (RoC) examines the proposed name. The RoC checks for conflicts with existing names, trademarks, and compliance with naming guidelines. If the name meets all conditions, it is approved and reserved for a period of 20 days. During this period, the applicant must complete the incorporation process using the approved name.

Rejection and Reapplication
If the name application is rejected, the applicant receives the reasons for rejection. In the case of SPICe+ Part A, the application can be resubmitted once without additional fees. For the RUN service, a fresh application with a new fee must be filed. Applicants are advised to revise the name based on the feedback received from the RoC.

Best Practices for Name Approval
To improve the likelihood of name approval, applicants should avoid using generic or common words, follow all naming rules, conduct trademark searches, and ensure the proposed name matches the company’s main objectives. Seeking professional advice from a Company Secretary or legal expert can further enhance the success of the application.

Conclusion
The process of name approval for a Public Limited Company is a vital legal requirement that establishes the identity of the company. It involves careful selection, verification, and application through the MCA’s digital platforms. By understanding the rules, preparing strong name options, and following the correct procedure, entrepreneurs can smoothly secure a valid name and proceed with the successful registration of their Public Limited Company in India.

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