An entrepreneur who is willing to start a new business is required to take into account various aspects before incorporation. One of the most important aspects is to select the name of the Company with which it is to be incorporated. Selection of improper name can create a bad picture in the minds of the common people. The name of your business will always be an integral part in marketing your company’s image, brand & position.
In this article Tax Mantra will provide you with few things which you should know while selecting the name of your company or LLP –
- Easy to understand – The name of your Company or LLP to be incorporated should always be easy to spell, write or understand. Common people cannot understand complicated names or spell it. Hence, name of your company or LLP should always be understandable, easy and should create some useful meaning.
- Avoid identical names – The name to be proposed for your Company or LLP should not resemble or be identical to the names already in existence of any Company. Identical or similar names will not be approved by the Registrar of Companies and will be rejected.
- Name should not be offensive against others – The name you intend to select for your Company or LLP should not be offensive to other sections of people. Means it should not disregard any religion, gender, ethnic group etc. Unethical names should always be avoided.
- Use short names – Don’t use too long names for your business entity as it is difficult to remember too. Keep the name of your Company or LLP as short as possible as it will be easy for common people to understand, remember and communicate to other people.
- Name not to violate the Name Act – The name should not violate the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time. The name should be in accordance with this Act.
- To be Descriptive & explanatory – The name should be descriptive & explanatory which means that the name should suggest the type of business you are intending to start up with. The name should describe the nature & type of business to an extent which will create a quality impression in the minds of common people.
- Choose a meaningful and attractive name – While selecting the name of your business one must keep in mind that the name possesses some meaning to it. Meaningless name should be avoided and the name should be attractive to others.
- Should create a positive outlook – Always select a name that will create a positive impact in the minds of other people. Positive outlook will make people more enthusiastic and optimistic about working with you and your company. Avoid anything negative.
- Select proper colours – Colours should always be an important aspect while selecting the Company logo, other materials and the Company website as they create impression in the minds of people. For instance a red colour specifies danger, speed, and passion and thus creates negative impact. Always choose vibrant and soft colours like green, white etc for your company as it leads to positive outlook.
In this way after keeping the above mentioned points in mind you should select the name of your company or LLP with which it is to be incorporated.