Question

A proposed name of company is considered undesirable if _________.

• A. It is identical with the name of an existing company
• B. It resembles closely with the same of an existing company
• C. It is an emblem of government of India, United Nations etc
• D. In case of any of the above

Answer 1

The correct option is D In case of any of the above

• To commence with the operation of a company, the directors of that specific company must acquire a Director Identification Number and the proposed name has to be approved by the Registrar of Companies in Ministry of Corporate affairs.
  
• As per the Companies Act, for a Company name to be approved for the incorporation, it must be both unique and desirable.
  
• The company name shall not be identical or even closely identical to any of the existing company name, to be approved by the Registrar of Companies.
  

Other conditions for name approval are as follows:

• Name should be in consonance with the principal object
  
• Names indicative of business constitution not allowed
  
• Vague or abbreviated name are not allowed
  
• Generic names will not be allowed
  
• Names that require Central Government approval needs an approval before they can be used.