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Guiding Principles for selecting name of the Company
Since the Registrar has been vested with power to allow or refuse a particular name in his discretion, the Central Government has laid down general guidelines for deciding the cases of availability of names.These are not exhaustive but are only illustrative.These guidelines have been laid down for the information and guidance of promoters so that they do not apply for availability of names which may be considered undesirable.The promoters should in their own interest, suggest three to four names quite distinct from each other for consideration to avoid the possibility of delay by refusal in case the first name is not available.These guidelines proved that a name which falls within the categories mentioned below will not generally be available:
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- If its not in consonance with the principal objects of the company as set out in its Memorandum of association.This does not necessarily mean that every name should be indicative of its object, but when there is some indication of business in the name then it should be in conformity with its objects.
- If the company's main business is finance unless the name is indicative of those particular financial activities which is like chit funds, investments, loans etc.
- If the names is only a general one, like cotton mills ltd or textile manufacturing ltd and not specific like Calcutta cotton textiles mill ltd .
- If it includes the word Co-operative, Sahakari,or the equivalent of word Cooperative in the regional language of the country.
- If it attracts the provisions of the emblems and names.
- If the proposed name contains the word "British India"
- If it resembles closely the popular or abbreviated descriptions of important companies like Texmaco (Textile machinery corporation), wimco (Western India Match Company)etc.In some cases, the first word or the first few words may be the key words and care should be taken that they are not exploited.Such words should not be allowed even though they have not been registered as trade marks.
- If its different from the names of the existing companies only to the extent of having the name of a place within brackets before the word limited.For example Indian Press (Delhi) limited should not be allowed in view of the existence of the company named Indian Press Limited.
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