Naming and Registering – Setting up a Business
Category : Entrepreneurs
To name a business is the first step towards setting up a business and also one of the most important aspect before you start your business. You have to consider many factors before you choose your business name.
You have to choose a unique name i.e. it should not conflict with any existing brand/company name. However some people intentionally name their business which resembles, in terms of spelling or pronunciation, with other major players.
Online presence of your business is also important hence you also need to check the availability of the domain name.
Generally people choose the name which itself defines their nature of business or industry. However, abstract names are also more popular these days.
If you opt for proprietorship or proprietor business, you don’t need to register your business name with any centralised authority. You just have to get your business registered with local authorities i.e. you need to register for professional tax and shops & establishment only. In addition to this, partnership firms are also required to register under partnerships act 1932 to the registrar of partnerships.
Incorporation of a company (public or private) is governed by the Companies Act 2013 (Erstwhile Companies Act 1956). Ministry of Corporate Affairs is empowered to regulate the formation, financing, functioning and winding up of companies. Registrar of the companies (ROC), appointed in almost each state in India regulates the corporate affairs.
For registering a name of the company, public or private, you should consider following:
- Suffix ‘private limited’ is compulsory of private companies and ‘limited’ is compulsory of public companies
- The name of the company should not resemble with any existing company registered in India.
- One of the keyword should reflect the nature of the business of the company i.e. an IT company may include ‘technology’, ‘software’ etc.
- Each word in the name of the company should have its own significance. Name can’t be selected with random names.
- It is also advisable to keep 2-3 options open to avoid any conflict with existing names and to avoid delay in proceeding. Also once rejected, the applicant needs to file form INC-1 (Erstwhile form 1A) again.
- For registering the name of the company one has to file Form INC-1 with ROC. ROC may issue name availability certificate within 3-4 working days. Certificate once issued remains valid till 60 days from the date of issue.
Once the name has been approved by ROC, registration process starts. Forms INC -7, DIR-12 and INC-22 have to be filed with ROC for registration of the company.
Form 7 is the ultimate form of registration in which the details regarding name of the company, type of company and subscribers details are required. Memorandum of Association and Articles of Association are the required attachments for filing Form INC 7.
Every company is supposed to have its registered office. In form INC 22, registered office address of the proposed has to be provided. Also the relevant ROC has to be selected. Registered office proof is the mandatory attachment.
Form DIR 12 is for the registration of directors. DIN of all the directors needs be mentioned the form. [Every person who intends to be a director needs to apply for Directors Identification Number (DIN)]. Also every person who wishes to become a director in the proposed company should provide his consent in writing and the same needs to be attached with the form.
After scrutinizing all the forms ROC may issue registration certificate which is called as Certification of Incorporation. The company is considered to have born on the day of issue of COI.
Additionally, after incorporation of the company is also required to file Form INC 21 intimating ROC / MCA about commencement of operations of the company.
We hope that you found the post useful.
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