Company registration is a process which involves several steps. Name approval is one of those steps. After getting Digital signature certificate (DSC) and Director Identification number (DIN), the next step is name approval of the company.
Before finalise your name you must check that the name must not resemble with existing company name or trademark. If the company name resembles other company name then MCA shall not approve the name. The prime criteria which is considered by the MCA official while approving name, is your company's objectives. It means the if your company name matches or signifies your objectives or main activities then you win the half battle in approving your name.
After submitting you name approval application, MCA takes normally 5 to 7 days to approve your name. But sometimes MCA does not approve name easily and rejects the same. Even in that case you have the opportunity to get your name approved by re-submitting the form 2 times after rectifying the earlier mistakes.
If you fail to get the name in extra 2 attempts as well then you have to move a fresh application from starting. After the getting the name, such name is valid only for another 60 days. It's like a reservation period within which you should incorporate you company otherwise proposed name can be lapsed due to no usage of the same.
There are so many points which must be kept in mind while going for name approval which are very well defined in the companies act, 2013. Therefore, we can conclude one thing that the main reason that due to which the name is rejected, is overlooking the laws. So, I am just mentioning those points which are neglected generally by the people as follows: