What words are not allowed to be used for the company

published by | April 1, 2025

The Ministry of Corporate Affairs (MCA) must first approve the name of the new entity before it can be used to establish a company or LLP (Limited Liability Partnership) in India. Companies/LLP can suggest a maximum two names in Name reservation form out of which one name is approved by the Central Registration Center (CRC). The promoter will be invited to resubmit the application with fresh names if none of the names supplied are acceptable. The fact that a proposed business name contains words that are forbidden by the Companies Incorporation Rules is one of the most frequent justifications for rejecting it

What words are not allowed to be used for the company

Words are not Allowed in Company Name.

The following words or combinations that contain the following terms are not allowed to be a part of a company name or LLP name.

  1. Board
  2. Commission
  3. Authority
  4. Undertaking
  5. National
  6. Union
  7. Central
  8. Federal
  9. Republic
  10. President
  11. Rashtrapathi
  12. Small Scale Industries
  13. Khadi and Village Industries Corporation
  14. Forest, Corporations and the like
  15. Municipal
  16. Panchayat
  17. Development Authority
  18. Prime Minister or Chief Minister
  19. Minister
  20. Nation
  21. Forest Corporation
  22. Development Scheme
  23. Statute
  24. Statutory
  25. Court or Judiciary
  26. Governor
  27. Bureau
  28. Development Scheme or the use of the word Scheme with the name of Government(s), State, India, Bharat, or any Government authority or in any manner resembling the schemes launched by Central, State, or Local Government or Authorities.

Particular Suffixes Would be Important

  • The word limited should arrive after the name of the company when the business would get registered as a public limited company.
  • A business name should be secure with the words Private Limited/Pvt. Ltd. at its end that is registered as a private limited company.
  • Companies registered as producer companies should use suffix Producer Limited.
  • Companies registered as OPC should use the suffix OPC Pvt./Private Limited.
  • Companies registered as IFSC should use the suffix IFSC Limited/Pvt. Limited.
  • Business entity registered as an LLP should use the suffix LLP/ Limited Liability Partnership.
  • Essential information- Section 8 enterprises and government-owned companies would get exempted from the same law.

Financial Services

Suppose the company’s primary business is financing, leasing, chit fund, investments, securities, or a combination thereof. In that case, the company name must indicate the related financial activity like Chit Fund, Investment, or Loan.

Business Constitution

Any part of a company name cannot contain words indicative of a separate type of business constitution or legal person like cooperative, Sehkari, Trust, LLP, Partnership, Society, Proprietor, HUF, Firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG, etc.,

Words Requiring Approval of MCA

If a proposed name contains words like insurance, bank, stock exchange, venture capital, asset management, Nidhi, mutual fund, et. c, then approval must be submitted from respective regulators like IRDA, RBI, SEBI, MCA, etc.,

Foreign Country or City

Suppose a company name contains a foreign country or foreign city name. In that case, the name approval can be approved only if the promoters submit proof of significant business relations with such a foreign country.

Words Allowed Only for Section 8 Company

The following words can be used as a part of a Section 8 Company name only:

  • Foundation
  • Forum
  • Association
  • Federation
  • Chambers
  • Confederation
  • Council
  • Electoral Trust

Important Restrictions While Reserving Names

  • The name should not be similar in any way such as the plural or singular form; use of different tenses; use of different phonetic spellings including grammatical change; any change in order of name; any change in type or case of letters/ spacing between letters/ punctuation marks/ special characters used; use of host name such as ‘www’ or a domain extension such as ‘net’, ‘org’, ‘dot’ or ‘com’; use of the definite or indefinite article; translation of name in Hindi/English; use of any name of place and any addition, deletion, or modification of numerals.
  • The name should not be used if prohibited or registered under the following act unless prior approval is taken from the applicable authority: 
  • Section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950)
  • Trade Marks Act, 1999
  • Company should take care of the following:
    • The name should not be offensive to any section of the people; 
    • The name should not contain the words ‘British India’
    • The name should not be identical to the name of a limited liability partnership incorporated in India or outside India
    • The name should not imply association or connection with an embassy or consulate of a foreign government
    • The name should not imply association or connection with or patronage of a national hero or any person held in high esteem or important personages who
    • Occupied or are occupying important positions in the Government
    • The name of the company should be related to the main business activities/ objectives of the company
    • The name should not be related to the popular or abbreviated description of an existing company or limited liability partnership
    • The name should not include the word “State”, in case the company is not a Government company
    • The name should not contain the name of a continent, country, State, city such as Asia Limited, Germany Limited, Haryana Limited or Mysore Limited
    • The term “commonly used words” refers to use of generic expressions that should not be included in the proposed name
    • The name should not include words such as ‘Insurance’, ‘Bank’, ‘Stock
    • Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual Fund’, etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA, etc. have been complied with by the applicant;
  • Domestic/ Foreign Group Companies incorporating its subsidiary company in India can use the original name of the holding company as it is may be allowed (with the addition of the word India or name of any Indian State or city, for foreign Subsidiaries) and also consent/ copy of resolution is to be attached approving/NOC for using the same name should be attached with the form.
  • The proposed name should not be identical to the following names:
    • Company dissolved as a result of liquidation proceeding for a period of two years from the date of such dissolution.
    • Company which is struck off in pursuance of action under section 248 of the Act or under section 560 of the Companies Act, 1956 (1 of 1956) for a period of twenty years from the date of publication in the Official Gazette being so struck off;
    • LLP in liquidation or which is struck off for a period of five years

FAQs

Are there any words that cannot be used in a company name?

Yes, certain words are restricted or prohibited under company naming regulations. These include words that:

  • Imply government affiliation (“National,” “Central,” “State,” “Union”)

  • Indicate unlawful or offensive activities (“Terrorist,” “Illegal,” “Fraud”)

  • Mislead about the company’s nature (“Bank,” “Stock Exchange,” “Insurance”) without proper approval

Can I use "India" or "Government" in my company name?

Yes, but only with approval from the Central Government. Words like “Government,” “State,” “India” can create confusion about government affiliation, so special permission is required.

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