The Ministry of Corporate Affairs (MCA) on March 25, 2026, issued advisory for Stakeholders for Name Reservation and Incorporation of Company and LLP.
The following have been stated:
Ensure that the proposed name(s) are distinctive and do not closely resemble, phonetically or otherwise, with any existing or well-known names. Additionally, confirm that they are sufficiently unique to avoid sounding similar to established brands or entities.
The guidelines specify restrictions and requirements for selecting names of companies and LLPs. Applicants should avoid using well-known abbreviations (like NHDC or BRICS) and must obtain prior approval or NOC from relevant regulators if the proposed name includes words such as “Bank,” “Insurance,” “Architect,” or professional terms like “Chartered Accountant” or “Advocate.” Use of foreign country names or words like “British” or “German” is allowed only with proof of business connection or collaboration.
Certain names are restricted or regulated, such as “Nidhi Limited,” which can only be used by eligible entities, and Section 8 companies must include words like Foundation, Association, or Federation. Names suggesting government association or patronage are not permitted. Additionally, LLPs are not allowed to undertake financial or NBFC-type activities, including microfinance.
The rules also prohibit names that are too similar to existing ones, differ only in minor ways (like tense, order, or translation), or are offensive in nature. Use of specific terms such as “Co-operative,” “Trust,” “Society,” “State,” or foreign corporate suffixes is restricted to prevent misleading or improper naming.
