The most basic and an important step in setting up your company is choosing an appropriate name for it. The naming should be in accordance with the Companies Act, 2013 or Limited Liability Partnership Act, 2008. There are three elements to the name of your company.
The Companies Act or the LLP Act suggests that a unique and acceptable name be given to the set up. The name should not resemble any existing entity or LLP or trademark in the same industry. However, the same name for a company in a different industry may be allowed. Hence, the founders must ensure the sanctity of the names.
The object part of the name is that which tells what is your company about and its business. It defines the company’s activity. Although two companies may share the same name, if their objects are different, the name will be allowed to be registered. However, it is important for the object part to be absolutely clear.
This part of the company name defines the type of entity it is. Private Limited Companies are represented by Private Limited Company or Pvt. Ltd Company; One Person Companies are represented by OPC or One Person Company; Limited Companies are represented by LTD Company or Limited Company; and Limited Liability Partnerships are represented by LLP or Limited Liability Partnership.
The Companies Act has laid down certain guidelines when it comes to naming a company.