How to Register Your Company Name

30/06/2021

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Company name is the identity of your business. It reveals your business idea and other details about your service/product. Your company name represents your business. Therefore, it is very important for you to choose a unique company name. If your company name is similar to that of other companies, it can very easily confuse your customers. So, how can you avoid such a situation? You can very easily do so if you register your business name.

Salient Features of the Indian Companies Act about Company Name Registration, 2013

The Indian Companies Act of 2013 came as a replacement for the Indian Companies Act of 1956. The new act, just like its precursor, deals with the provisions related to the governance of all companies (listed and unlisted) in India. Its key highlights related to company name registration for private limited companies are summarized below:

Business name registration is the first step towards incorporation of a new company.
The chosen business name must not match with the name of any existing business entity that is registered under MCA (Ministry of Corporate affairs) or has a similar registered trademark.
You can submit two applications for name registration using the company incorporation form.
The business name application filing fee is ₹500/-
Unavailability of chosen names will lead to rejection of the form.
If your application for company name registration is rejected, you can resubmit only one application the second time. The fee for this name approval will be ₹500/-.
All company names need to abide by Section 4(2) and 4(3) of the Companies Act of 2013 and Rule 8 of the Company Incorporation Rules of 2014.

Salient Features of the Indian Companies Act about Company Name Registration, 2013

4 Steps to Registering Your Company as a Legal Entity

Merely registering your company name will not ensure that your company will become a legal entity. Thus, you are also required to get your company registered. Here are the four steps that can guide you through this:

Get a DSC (Digital Signature Certificate) by applying online
Get a DIN (Director Identification Number)
Register on MCA portal
Apply for Company Registration

Documents Required for Registration of Company Name

Here are the details of the required documents for registering your company name:

Original and photocopy of the PAN card of proposed directors/owners of the company.
Address proof: An address proof that has the name of the applicant (business owner) along with the latest/current postal address. All the details of the address proof must match with the details on the PAN card. The following documents are considered as the address proof for business name registration:

Passport
Aadhaar card
Ration card
Voter identity card or elector card
Electricity/telephone bill
Driving license

Residential proof: Photocopy of the residential proof of the director/owner of the business along with its original copy. The following documents can be submitted as the residential proof:

Mobile bills
Telephone bills
Electricity bills
Bank statement

Registered office proof: Within 30 days of incorporation of the company, the following documents must be submitted as the proof for the registered office address of the company:

The registered document of the office in the name of the company
The rent agreement or notarized copy of lease along with a rent receipt in the name of the company for the previous month
NOC from landlord
Electricity bill, telephone bill, or any such utility service bill that shows the address of the registered office. These bills should not be older than 2 months.

Guidelines on How to Register Business Name

You can register your business name in three ways:

Choose and register your business structure by choosing a business name, filing paperwork, publishing a notice of intent, and getting all the necessary permits and licenses. Creating a formal structure brings many benefits and automatically registers your business name.
Apply for a DBA if you are a sole proprietor and do not wish to use your full name as the name of the business. This is the easiest way to register a business name.
Another way to register your company name is to trademark your business name.

Benefits of Registering Companies

If you are starting a new company, registering the same can appear to be a difficult step. However, there are several benefits of registering your company. They are highlighted under:

Registering your business as a company provides protection for personal assets by limiting your liability. If you were a sole trader or a partner, you would be considered responsible for all the aspects related to your business including the losses and debts. This brings your personal assets under risk. However, a company is considered as a separate legal entity, so then debts and losses are not attached personally to yourself.
Tax rates are lower for companies than the tax rates charged for a business owned by an individual. Irrespective of how much revenue your business brings in, running a business as a registered company minimizes your tax liability.
Registering your business as a company separates ownership from management that allows your business to be easily run by professionals.
A business registered as a company under MCA increases its credibility and boosts brand awareness. This may in turn bring in more sales, profits, and better customer conversion rates.
A registered company can also potentially attract investors to get funds for business expansion. It may also make a business eligible to enjoy different facilities provided by the government to boost its growth.

In conclusion, by following a few simple steps, you can register your business and your company name. This would help you to explore a great number of benefits and opportunities to make your business a potentially successful venture.

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