A must that All Entrepreneur should Know: How to Name your Company: Changes - Companies (Incorporation) Amendment Rule 2016

Indian Government has taken another step to add to ease of incorporation of the company in India.
With new Companies (Incorporation) Amendment Rule 2016 there are a few changes in the naming rules of the company rather has relaxed some of the previous norms.

Munim.in, an online marketplace for accessing Company Registration, Trademark Registration, Service Tax Registration and other allied professional CA and Legal services, presents the highlights of the amendment with direct comparison with the previous rules.

#1
Earlier:
Company's name was necessary required to be in consonance with the principal object for example XYZ Builder Private Limited had to be for construction and building works, if such name resembled any object of the company.

Now:
Name of the company will not be undesirable even if it is not in consonance with the principal objects of the company as set out in Memorandum of Association. Thus XYZ Builder Private Limited may engage in other activities as well.

#2
Earlier:
Restriction on usage of vague and abbreviated names

Now:
The restriction has been levied and such names are accepted now. For example 123K limited etc

#3
Earlier:
If the company has changed its activity which are not in line with its name then the company has to change the name to be inline with the activities

Now:
No such requirement as already cleared in #1.

#4
Earlier:
Incase key words used in the proposed name of the company is the name of the person(s) other than the name of the promoter(s) or their close blood relatives, then an NOC from such person(s)  and the proof of relation were required to be attached, respectively.

Now:

No requirement of furnishing NOC and proof of relation now.

#5
Earlier:
Only one opportunity used to be given to remove defects or deficiencies before re-submission for fast track mode of incorporation that is through INC 29

Now:
The registrar can provide third opportunity for removing defects or deficiencies before re-submission for INC 29 or fast track mode of incorporation but the opportunity can only be availed with in 30 days of the first notice.

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