COMPANIES NOT TO BE
REGISTERED WITH UNDESIRABLE NAMES
Guidelines for allotting
names to new companies-Criteria for allowing use of words "Hindustan"
and "Corporation"
I am directed to say that it has been observed that some
of the Registrars of Companies are having an impression that while allotting
names to the new companies the word "Hindustan" should be kept
reserved only for public sector companies, viz., Government companies and that
it should not be allowed to be used by private sector companies. This question has been examined and it has been decided that the word
"Hindustan" may be allowed to private sector companies provided the
scope and scale of business of the proposed company justify the use of such a
word. While disposing of applications
in this regard, the guidelines already issued and their applicability or
otherwise in all aspects to the facts of the cases maybe examined in the light
of the clarifications now given on the subject.
As regards the word
"Corporation", a question has recently been raised as to what should
be the criteria for regarding a company as a "big-sized" company to
enable the Registrar to allow the word "Corporation" in the name of a
company other than a Government company which is proposed to be
registered. This has been examined in
the light of the guiding Instruction No.20 already issued under this
Department's Circular Letter No.10(19)Rs/65, dated 5.5.1962 and it is of the
view that for the purpose of treating a company as a big-sized company or not
at the time of incorporation, its authorised capital will have to be taken into
consideration. As no specific limit of
capital has been indicated in the aforesaid guiding instructions for a
big-sized company to be incorporated, it is considered necessary to clarify the
position in this regard. It may,
therefore, be noted that a company which is proposed to be registered with an
authorised capital of Rs.5 crores or above may be regarded as a big-sized
company and the Registrar may allow the use of the word "Corporation"
in deserving cases while approving the names of such companies. However, for preparing the board sheets on
big-sized companies, those companies whose paid-up capital is Rs.50 lakhs or
more (and not the authorised capital are to be regarded as big-sized companies
according to the existing practice which should be continued.
CIRCULAR NO. 16/74
F.NO.27/9.74 CL-III DATED
27.9.1974
Guidelines for availability
of names
I am directed to say that with a view to maintain
uniformity, the following guidelines may be followed in the use of key words,
as part of name, while making available the proposed names under sections 20
and 21 of the Companies Act, 1956.
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Key
words Required authorised capital
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Rs.
(1)
Corporation 5 Crores
(2)
International, Globe, Universal, 1 Crore
Continental,
Inter-Continental, Asiatic,
Asia,
being the first word of the name
(3)
If any of the words at (2) above is 50 lakhs
used within the name (with or without
brackets.
(4) Hindustan, India, Bharat, being 50 lakhs
the first word of
the name
(5)
If any of the words at (4) above is 5 lakhs
used
within the name (with or without
brackets)
(6)
Industries/Udyog 1 Crore
(7)
Enterprises, Products, Business, 10 lakhs
Manufacturing.
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2. These names with key words at Serial Nos. (6) and (7)
may be considered when the company proposes to deal in various business
activities or the company is already carrying on various business activities
(in the case of change of name).
Application form for
availability of names under rule 4A
I am directed to say that as per the application
form for availability of names [Form No.1A], prescribed under rule 4A of the
Companies (Central Government's) General Rules and Forms, 1956, the promoters
are, inter alia, required to give the names and addresses of the prospective
directors or promoters, as also the name(s) and address(es) of the person(s)
applying for availability of names. You
are requested to advise your constituents to ensure that the application form
is filled up in all respects and the application is made by one or more amongst the promoters. The Registrars of Companies have been
advised to ensure at the time of
registration of a new company that the subscribers to the memorandum and
articles of association tally with the list of promoters/first directors stated
in the application for availability of names and in case, one or more of the
promoters are not interested in participating in the promotion of a new
company, at a later stage, a "No objection letter" from such
promoter(s) is made available to the Registrar while submitting the documents
for registration. The Registrars of
Companies are also being advised to dispose of applications for availability of
names ordinarily within 14 days of the receipt of application and to correspond
with the applicant promoter(s), in this behalf.
LETTER
F. NO.27/1189-CL III..