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Step-by-Step Guide for Getting Your Company Name Approved in India

Step-by-Step Guide for Getting Your Company Name Approved in India

Starting a business in India is exciting, but before you print visiting cards or design a logo, there’s one crucial checkpoint—company name approval . Think of it as getting a birth certificate for your business. Without it, your company simply doesn’t exist in the eyes of the law.

What Does Company Name Approval Mean?

Company name approval is the official process where the government verifies and approves the name you want to register for your business. This ensures your chosen name is unique, lawful, and doesn’t clash with existing companies or trademarks.

Why Is Name Approval Mandatory?

It prevents confusion, protects intellectual property, and maintains transparency in the corporate ecosystem. In short, it keeps the business world neat, organized, and fair.

Legal Framework Governing Company Name Approval

Role of the Ministry of Corporate Affairs (MCA)

The Ministry of Corporate Affairs (MCA) is the authority responsible for regulating company registrations and approvals in India. All name approval applications go through the MCA portal.

Companies Act, 2013 – Key Provisions

The Companies Act, 2013 lays down the rules for company incorporation, including how names should be selected and approved.

Relevant Rules Under the Act

  • Companies (Incorporation) Rules, 2014
  • Trademark Act, 1999 (indirectly impacts name approval)

Types of Business Entities Requiring Name Approval

Private Limited Company

Most startups choose this structure due to limited liability and scalability.

Public Limited Company

Requires stricter compliance and is suitable for larger businesses.

One Person Company (OPC)

Perfect for solo entrepreneurs wanting corporate benefits.

LLP and Partnership Firms

LLPs require name approval via MCA, while partnerships follow state rules.

Importance of Choosing the Right Company Name

Branding and Market Perception

Your company name is your first impression. A strong name builds trust, recall, and credibility—like a firm handshake in a business meeting.

Legal Compliance and Risk Avoidance

A compliant name saves you from future legal disputes, rebranding costs, and trademark issues.

Key Rules for Selecting a Company Name in India

Naming Guidelines Issued by MCA

  • Name should not be identical or similar to existing companies
  • Must reflect the nature of business
  • Should not be misleading or offensive

Words That Are Prohibited or Restricted

Words like “Bank,” “Insurance,” “Government,” or “National” need special approval.

Use of Abbreviations and Symbols

Avoid random abbreviations unless they clearly represent the business activity.

Common Reasons for Company Name Rejection

Similarity with Existing Company Names

Even minor spelling changes won’t work if the pronunciation is similar.

Use of Trademarked or Offensive Words

Trademark conflicts are one of the biggest rejection triggers.

Incorrect Business Activity Representation

If your name suggests an activity you don’t actually do, rejection is likely.

Step-by-Step Process to Get Company Name Approved

Step 1 – Brainstorm Unique Name Ideas

Create 3–5 unique names. Think brand-first, compliance-second.

Step 2 – Conduct Name Availability Check

Using MCA Portal

Check existing company names on the MCA website.

Trademark Search

Always do a trademark search to avoid future legal trouble.

Step 3 – Prepare for RUN or SPICe+ Application

Decide whether you want only name approval or full incorporation.

Step 4 – Filing RUN (Reserve Unique Name)

RUN allows you to reserve a company name before incorporation.

Step 5 – Name Approval via SPICe+ Form

SPICe+ is a combined form for name approval and company incorporation.

Step 6 – Responding to Resubmission or Clarification

If MCA asks for clarification, respond promptly with precise justification.

Documents and Information Required for Name Approval

Basic Business Details

  • Proposed company names
  • Type of company
  • Registered office state

Proposed Objects of the Company

Clearly define what your company will do.

Timeline and Fees for Company Name Approval

Expected Processing Time

Usually 1–3 working days if everything is correct.

Government Fees Involved

  • RUN: ₹1,000
  • SPICe+: Included in incorporation fees

Tips to Increase Chances of Name Approval

Choosing Distinctive and Meaningful Names

Invented or coined words work best.

Aligning Name with Business Activity

Make sure the name clearly reflects what you do.

What to Do After Company Name Is Approved

Validity of Approved Name

Approved names are valid for 20 days (SPICe+) or 60 days (RUN).

Next Steps for Company Incorporation

Proceed with filing incorporation documents before expiry.

Difference Between RUN and SPICe+ for Name Approval

When to Use RUN

If you want name approval first and incorporation later.

When SPICe+ Is the Better Option

Best for faster, one-step company registration.

Professional Help vs DIY Name Approval

Benefits of Hiring Professionals

  • Higher approval success
  • Saves time and effort
  • Avoids legal mistakes

Risks of Self-Filing

Small errors can lead to repeated rejections.

Mistakes to Avoid During Company Name Approval

Overlooking Trademark Conflicts

Always cross-check trademarks.

Using Generic or Vague Names

Generic names rarely get approved.

Conclusion

Getting your company name approved in India isn’t complicated—but it does require attention to detail. A well-thought-out, compliant, and distinctive name not only speeds up approval but also lays a strong foundation for your brand. Follow the steps carefully, avoid common mistakes, and your business will be off to a flying start.

FAQs

Q1. Can I submit more than one name for approval?

Yes, you can submit up to two names per application.

Q2. What happens if my company name is rejected?

You can resubmit with corrections or file a fresh application.

Q3. Is trademark registration mandatory before name approval?

Not mandatory, but highly recommended.

Q4. Can two companies have similar names in different states?

No, company names must be unique across India.

Q5. How long does company name approval last?

Between 20 to 60 days, depending on the application type.