Frequently Asked Questions

What are the restrictions on a company's name as per the Name Clause?

The Name Clause in a company's Memorandum of Association (MOA) outlines several restrictions on the company's proposed name. Firstly, the name must end with "limited" if it's a public company, or "private limited" if it's a private company. This helps to clearly identify the type of company and its liability structure. Secondly, the proposed name cannot be identical to any existing company's name. This is to avoid confusion and potential legal disputes. Similarly, the name cannot allude to the new company doing the business of an existing company. This is to prevent misrepresentation and unfair competition. Thirdly, the name should not be misleading in any way. This means it should not give a false impression about the company's size, activities, or connections. For example, it should not suggest that the company is part of a government body or a well-known corporation unless it actually is. These restrictions are designed to ensure transparency, fairness, and clarity in the business environment. They help to protect the interests of the company, its shareholders, and the public. It's important to carefully consider these restrictions when choosing a company name, as the name plays a crucial role in the company's identity and reputation.