Name Reservation for Public Limited Company

Name reservation of a Public Limited Company is the legal procedure of obtaining permission for a proposed company name from the Ministry of Corporate Affairs (MCA) prior to incorporation. This authorisation will ensure that the name chosen is legally acceptable and does not interfere with existing names of companies, trademarks, or prohibited terms.

It is a safeguarding process. Promoters should also make sure that the name is acceptable under the Companies Act, 2013, before they invest time, capital, or legal documents in the formation of the company. The MCA considers the name proposed to represent the business intent of the company. This prevents misleading expressions and clearly identifies it as a public limited entity.

After approval, the name is not available to other people except the applicant for a limited period of time. The promoters will have to incorporate during this period. Without name reservation, this step is an obligatory precondition of registering a Public Limited Company in India.

Name reservation is compulsory since it will safeguard the legal and commercial ecosystem of registered companies. A Public Limited Company is larger in scope and is involved with the public investors, maintaining transparency and trust from the early stage.

The Companies Act demands that each company possesses its own identity. The MCA confirms this by name reservation, where there is no duplication or confusion with other already established companies or registered trademarks. This procedure will also reduce the misuse of sensitive or misleading terms that may influence the interest of the people.

For promoters, name reservation helps in risk reduction. It prevents last minute rejection during incorporation, is less expensive and does not create branding problems after the launch. The reservation of names is a mandatory compliance procedure without which no Public Limited Company can be registered.

Reservation of a company name brings legal certainty and operational assurance prior to the commencement of incorporation. It enables promoters to strategize business operations without any doubt and to make sure that the suggested identity aligns with the regulatory requirements.

• Legal Name Protection: A registered name offers a unique recognition under MCA records, and no other party can register the same or a name that is confusingly similar to the names by other entities during the period of the reservation.
• Smooth Incorporation Timeline: With the company name already approved, incorporation filings move forward without interruption, minimizing procedural delays and avoiding objections that commonly arise at later registration stages.
• Early Brand Credibility: A reserved name signals seriousness and adherence to investors, lenders, and partners, and can be used to establish trust even before the company is operational or officially incorporated.
• Lower Risk of Rejection: By detecting and eliminating naming problems at an early stage, this will save government fees as well as avoid the last-minute rebranding or documentation changes.
• Business Planning Confidence: The promoters can confidently plan branding, domain registration, communication with investors, and preliminary contract agreements because the company name is registered legally.
• Regulatory Compliance Assurance: Name reservation ensures that the proposed identity is in compliance with the Companies Act naming rules, thus reducing the risk of regulatory challenges.

Name approval is done under rigid legal principles as stipulated by the Ministry of Corporate Affairs to promote transparency and fairness.

• Uniqueness Requirement: The proposed name should be easily distinguishable from the existing company names, LLPs, and registered trademarks in order to prevent confusion and legal issues.
• Compulsory Suffix Usage: The suffix " Public Limited should be used at the end of the name, which makes it clear to the stakeholders and regulators that the company is a legal entity.
• Business Activity Alignment: The name must indicate the main business goals as mentioned in the Memorandum of Association (MOA) without having misleading references and irrelevant terms.
• Restricted Words Control: Words such as “National,” “Bank,” “Authority,” or “Stock Exchange” must be approved by the relevant regulators before being utilised.
• Prohibited and Offensive Terms: Names containing offensive language, misleading implications, or references against public morality are strictly rejected during scrutiny.

The name reservation needs limited but accurate information to justify the planned identity of a company. By providing the correct documents, the application will be processed without any consequences and will have fewer chances of being objected or delayed during the MCA scrutiny. The key documents required are:

• Proposed company name options
• Brief description of main business activity
• Director Identification Number (DIN) of proposed directors
• Permanent Account Number (PAN) of promoters
• Digital Signature Certificate (DSC) of the authorised signatory
• Trademark authorisation or NOC, if applicable

Reserving a name for a Public Limited Company follows a defined legal procedure under the MCA. Every step should be done with caution in order to make sure that the proposed name is up to the regulatory standards and does not cause any unwarranted objections or delays.

• Finalising Name Options: Have two or three name options that are unique, business-relevant, and compliant with naming rules, which will increase the chances of passing the MCA examination.
• Checking Name and Trademark Availability: Check the proposed names on the MCA database and trademark registry to make sure that there is no existing company or registered mark that poses a conflict or similarity concern.
• Filing the Name Reservation Application: Submit the application online through the MCA portal with correct and complete details, name options chosen, and description of the main business operations of the company.
• Examination by Registrar of Companies: The Registrar reviews the application and verifies objections if any, and may request clarification or supporting justification before approval is granted.
• Receiving Name Approval Confirmation: After approval, the name is registered in the records at MCA for the required validity period, allowing promoters to continue with incorporation formalities without any name-related issues.

When submitted using SPICe+, an approved name of a Public Limited Company remains valid for 20 days after the date of approval. Incorporation documents are to be filed during this period. In case of incorporation is not completed within the valid duration, the name lapses automatically. Promoters have to reapply once it expires, and this might include a new scrutiny or rejection if naming conditions change.

The majority of name rejections occur because of the gaps in the knowledge of the MCA naming rules that can be avoided. A good business idea can also be delayed by the fact that the name proposed is not up to the legal and regulatory standards.

• Names that are similar to the existing companies, LLPs or registered trademarks are not accepted as they can create confusion among the stakeholders and breach the requirement of uniqueness as required under the Companies Act.
• Proposed names that indicate activities need special regulatory approval, like banking or insurance, are rejected in cases where no previous approval by the concerned authority is provided.
• Names that are not well matched with the mentioned business objects are usually rejected, since they cause confusion about what the company is actually doing and what its purpose is.
• The use or lack of the words ‘Public Limited’ at the end of the name results in the failure to adhere to the mandatory legal naming conventions.

Tips to Get Faster Approval for Public Limited Company Name Reservation

The speed at which the approval is done is mostly dependent on the way the name is strategically planned and presented. An effective application saves time and increases chances of being accepted in the MCA review process.

• Select names that are unique, significant, and easily distinguishable from other companies and should not have common industry names that increase the chances of rejection due to similarity.
• Make sure that the proposed name is a direct reflection of the primary business activity of the Memorandum of Association (MOA), which will allow examiners to understand its relevance as soon as possible.
• Avoid restricted or sensitive words unless you already have written approval from the concerned regulator, as incomplete applications almost always delay approval.
• Provide clear and concise justifications while filing the application, explaining the logic behind the name to support faster and smoother evaluation.

Corpseed is a leading consulting firm that supports businesses at every stage of company formation, including accurate and compliant name reservation for Public Limited Companies. Our team focuses on reducing rejections, saving time, and ensuring the proposed name aligns fully with MCA and Companies Act requirements.

• Clear Guidance on MCA Naming Rules: We help you understand naming guidelines, restricted words, and compliance requirements in simple terms, ensuring your proposed name meets legal standards from the beginning.
• Strategic Name Selection Support: Our team assists in choosing strong, distinctive name options aligned with business objectives, reducing the risk of similarity objections or trademark-related issues.
• Error-Free Application Filing: From drafting justifications to submitting accurate details, we ensure the name reservation application is complete, precise, and free from technical mistakes.
• End-to-End Support: We manage the entire process, including application submission, follow-ups with MCA authorities, and timely responses to clarifications, allowing you to stay focused on business planning.
• Faster Approvals with Expert Handling: With hands-on experience and process familiarity, we help speed up approvals by anticipating objections and addressing them proactively.