In its latest update to the Companies Act, MCA has come up with a new list of amendments with the Companies (Incorporation) Fifth Amendment Rules 2019. It establishes the rules for naming a company. It is a long notification that provides details about name similarity, undesirable names and names that are not allowed for company incorporation.
MCA’s latest notifications came with new amendments to the Companies Act. These amendments, dubbed as Companies (Incorporation) Fifth Amendment Rules 2019 establish rules associated with company Names. There are three parts of this notification, and through this blog, we are going to succinctly explain them to you.
Contents of Companies (Incorporation) Fifth Amendment Rules 2019
The new Companies (Incorporation) fifth Amendments of 2019 are focused towards establishing new rules regarding company names. The three parts of this notification are as follows:
- The first part establishes rules for names which resemble too nearly with the name of the existing company: In this rule, the company name that has been applied for incorporation would only be considered similar to the ones only registered under the newly established rules. Under this part, there are 12 rules established. It says that under Sub Rule 1, the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
- The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of company incorporation in India.
- The third part is the part of the previous section. It establishes the words and expressions that can’t be used for company registration. There are over 27 such words that cannot be in used within the names of the company if the company wants to be registered.
The details regarding these rules can be found in the official MCA notification of Companies (Incorporation) Fifth Amendment Rules 2019.