Top Reasons for Company Name Rejection

Preface: This post was originally published in 2022 and has been updated on August 04, 2025, to provide you with the most current and accurate information.

When incorporating a company, the applicant is required to propose a name for the company. However, there is no guarantee that the Ministry of Corporate Affairs (MCA) will approve the proposed business name. This name might get rejected due to a variety of reasons. In this blog post, we shall discuss the common name rejection reasons in the context of India. 

If you’re planning to incorporate a company in India, but are yet to decide the name for your company, it’ll be helpful for you to know the common reasons why a proposed company name might get rejected. The reasons provided herein will allow you to be careful and reduce chances of business name rejection. 

Common Reasons for Company Name Rejection

The common reasons due to which the Ministry of Corporate Affairs (MCA) might reject a proposed name for a company are as follows:

1. Proposed Name is Inconsistent with Business Objectives 

The MCA might reject the proposed name if it does not align with the main objectives of the business that are outlined in the company incorporation application.

Let’s suppose a company’s proposed name is “XYZ Manufacturing Private Limited”. However, in its incorporation application, the main objective is “providing business consulting services.” 

Such a name is highly likely to face a rejection on the ground that there is a clear inconsistency between the name and objective.

2. Name Proposed is Identical/Similar to an Existing Company’s Name

If two company names are too identical or similar to each other, it can deceive the public at large. As per the rules of Companies Act 2013, no two companies can be registered with identical names and trademarks. Therefore, each and every company in India must have a unique name.

If the proposed name for a company is found to be similar to any existing name, it will be rejected by MCA. Also, one important point to be noted here is that the names with a similar pronunciation, like BAN and BAAN, will be considered similar by approving authorities.

3. Proposed Name is too General

The name reservation status is only granted to a unique business name that is not already in use by another business entity. If the approving authority finds that the name applied is too general, it will reject the same. 

For instance, the names “women private limited” or “cement private limited” are very general and lack a unique character and identity.

4. Name Comprises of Terms like Industry/Udyog, Enterprise, Products, Business and Manufacturing

A company is allowed to include key terms, such as industry/udyog, enterprise, products, business and manufacturing, in its name only if it is already dealing in multiple commercial businesses or proposes to deal in multiple commercial activities. 

Thus, the company undertaking only a particular trade is not empowered to use such terms. Additionally, startups with no track record of multiple activities won’t be allowed to choose these key terms.

5. Name Comprises Undesirable Words like National, Central, Union and Federal

Use of words like National, Central, Union and Federal in the name of the company is considered undesirable by the Ministry. Any proposed name containing these words will face rejection by MCA.

6. Name Indicates Partnership/Patronage of a National Leader or Government

If the proposed name is pointing towards a partnership or the patronage of the company with any national leader or the government, it will be rejected by the Ministry unless supported by strong evidence. For example, the proposed business name “Delhi city hospitals private limited” will be rejected by the Ministry on this ground.

7. Name Consists of Terms like International, Hindustan, India, Bharat, Continental, Asiatic and Corporation

The use of words like International, Hindustan, India, Bharat, Continental, Asiatic and Corporation will only be allowed only when the scope and scale of the business justify the use of these words. 

Thus, the Ministry will reject the names containing words if the scale or scope of business activity is considered as small.

8. Proposed Name does not Contain a Suitable Prefix

The prefix in the company name is usually the name of the company or its brand. In order to get name approval, it is important that it contains a suitable prefix. 

If the prefix used is similar to an existing trademark or company name or it is unsuitable, it may face rejection by the Ministry of Corporate Affairs.

Conclusion

One of the most crucial steps while incorporating a company is choosing the “right company name”. By “right company name”, we mean a name that is unique in nature and isn’t too similar/identical to an existing company name. Additionally, this name must conform to the guidelines set forth by MCA. If the name is found to be non-compliant with the guidelines, then it is highly likely that it’ll be rejected by the MCA.

If you need assistance in choosing the right company name, you can connect with our company incorporation consultants at Registrationwala!

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.