Steps to Reserve a Company Name

Introduction

The name of a company is a key part of its identity, conveying both its brand and its business activities. For this reason, it should be selected carefully while ensuring compliance with all legal requirements. The proposed name must be unique and must not conflict with any existing business names. After finalizing your preferred name, you must seek approval from the Registrar of Companies (ROC).

Reserving a company name is an essential step in the business incorporation process. The Ministry of Corporate Affairs (MCA) offers two primary routes for name reservation: RUN (Reserve Unique Name) and SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus). Understanding the features and benefits of each method helps you choose the most suitable option for your business and ensures a smooth, compliant name reservation experience.

For professional assistance with company name reservation or company registration, contact Auriga Accounting pvt. ltd. Our expert team is ready to guide you through a seamless and efficient process.

What is a Company Name?

A company name is a unique identifier that distinguishes a business entity from others in the market. It fulfills several important functions:

Legal Identification:
Once registered with the appropriate government authorities, the company name becomes its official legal identity and is used in all formal documents and records.

Brand Identity:
A company name reflects the brand, values, and image of the business. It often creates the first impression for customers and plays a major role in marketing and branding.

Operational Distinction:
A distinct name prevents confusion among consumers and avoids conflicts with existing businesses. It also reduces the risk of trademark or naming disputes.

Compliance:
Choosing and registering a company name is a mandatory step in the incorporation process. It must meet all legal requirements set by regulatory authorities.

Professionalism:
A well-selected name conveys credibility, professionalism, and clarity about the company’s mission, helping attract customers, investors, and partners.

Characteristics of a Good Company Name

A strong company name typically has the following qualities:

Unique: Clearly distinguishable from existing company names and trademarks.
Compliant: Meets legal guidelines under the Companies Act, Trademark Act, and other regulations.
Relevant: Reflects the nature, values, and industry of the business.
Memorable: Easy to pronounce, spell, and recall, improving brand recognition.
Scalable: Flexible enough to support business expansion or diversification in the future.

Also read – MCA Restricted Words for Company Names in India

Importance of Reserving a Company Name

Reserving a company name ensures its availability and protects it from being used by others. This prevents future legal disputes and secures the identity of your business before incorporation.

Legal Guidelines & Principles for Selecting a Company Name

A company name must comply with various laws to avoid conflicts and ensure smooth approval. Key legal provisions include:

S.No.	Laws	Legal Provisions
1	Companies Act	Section 4(2): Name must not be identical or too similar to an existing company/LLP; must not violate any law; must not be undesirable. Section 4(3): Name must not imply government affiliation or include restricted words without prior approval.
2	Companies (Incorporation) Rules	Rule 8: Outlines factors to ignore when comparing names; if still identical, the name cannot be used. Rule 8A: Lists undesirable words. Rule 8B: Lists words requiring Central Government approval.
3	Trademark Act	Section 29: Prevents using a name identical or similar to a registered trademark unless permitted by the trademark owner.
4	Names & Emblems Act	Section 4: Prohibits registration of names containing protected emblems or expressions without government approval.

Key Requirements for a Company Name

The name must be unique and aligned with the business activities.
The business activity should not appear as the first word in the name.
The name must not infringe any registered trademark.
It must comply with all provisions of the Companies Act, 2013.

Application for Reserving a Company Name

The Ministry of Corporate Affairs (MCA) has simplified the incorporation process so that even individuals with minimal professional guidance can incorporate a company. Company name reservation can be done through two methods:

Method 1: Reserve Name Through RUN (Reserve Unique Name)

RUN is a web-based service for reserving names for new companies or for changing the names of existing companies. Before RUN, applicants had to file Form INC-1 with Director Identification Numbers and a Digital Signature Certificate. RUN eliminates the need for a digital signature and streamlines the name reservation process.

Method 2: Reserve Name Through SPICe+ (Company Incorporation)

SPICe+ is an integrated online form that combines 11 services from multiple government departments. It includes:

SPICe+ Part A: For name reservation and starting incorporation.
SPICe+ Part B: For incorporation, DIN, PAN, TAN, GSTIN, EPFO, ESIC registrations, bank account opening, and Professional Tax (in Maharashtra).

Applicants can file Part A alone or submit both Part A and Part B together. Existing companies must use the RUN service for name changes.

Procedure for Company Name Reservation

Step 1: Check Name Availability
Search the proposed name on the MCA Name Search portal and perform a trademark search on the official trademark website. Tools offered by Auriga Accounting pvt. ltd. make it easier to verify name availability and avoid rejections due to duplication.
Step 2: Choose the Appropriate Form
- Existing companies or name changes: Use the RUN service.
- New company incorporation: Use SPICe+ Part A via the MCA portal.
Step 3: Fill Out the Name Reservation Form
Using RUN:
- Enter the proposed name, company type, and industry details.
- Check availability and submit the request.
Using SPICe+ Part A:
- Enter name details, company structure, business activities, and supporting information.
- Submit the form to reserve the desired name.
Step 4: Submit Application on MCA V3 Portal
1. Log in to the MCA V3 Portal.
2. Go to MCA Services → Company e-Filing → Incorporation Services → SPICe+ Form – Reserve Name.
3. Select company details such as type, class, and category.
4. Choose up to three relevant NIC codes for business activities.
5. Enter the proposed name carefully and attach supporting documents.
6. Use the Auto Check feature for compliance validation.
7. Pay the name reservation fee of ₹1,000.
Step 5: Approval & Validity
- Name approval typically takes 4–5 working days.
- Once approved, the name reservation is valid for 20 days.
- If clarification is required, the MCA may request resubmission.
- Usually, only one resubmission is allowed.

About the Author

Ravi

Ravi is a skilled legal writer who transforms complex laws into clear, practical guidance. He empowers entrepreneurs to understand their legal duties with confidence, helping them build compliant and sustainable businesses.