新しい「会社名」基準 - 2021年9月1日より施行

The name of a company is a huge part of its identity. It is one of the few characteristics that form the unique identity of the company and sets the base for recognition in the market. This is why it is necessary to stay updated on the “Company Name” norms in India. 

In this article, you will get a detailed analysis of the new “company name” norms that will be effective from 1st of September 2021.

1. Existing Provisions related to Name (Section 16 of the Companies Act, 2013)

Section 16 of the Companies Act relates to the rectification of a company name in various circumstances. Even the Central Government has the power to directly change the Company’s name.

1.1 Situations when Rectification of Name required

According to Section 16 (1) of the Companies Act, if a company obtains new registration or amends its name, then in the following situations the company will be required to change its name:

1. If Central Government is of the opinion that the name of the company is identical or too nearly resembles the name of an existing company (registered under new or old company law);
2. If a registered proprietor of a trade mark makes an application to the Central government that that a company name is identical with or too nearly resembles to a registered trademark of such proprietor under the Trade Marks Act, 1999.

1.2 Action to be taken by the Company

1. Upon receipt of directions from the Central Government, the Company shall change its name or adopt a new name within 3 Months or 6 months from date of receiving such direction.
2. Name can be changed after passing an ordinary resolution.
3. As per Section 16(2) of the Companies Act, where a company changes its name or obtains a new name under Section 16 (1) of the Companies Act, the company must give a notice of such change to the Registrar of Company within 15 days from the date of such change.
4. Furthermore, information to the RoC must be given along with the order of the Central Government who will then carry out necessary changes in the certificate of incorporation and memorandum.

1.3 Consequences of Non-Compliance

1. According to Section 16 (3) of the Act, if a company fails to comply with any direction of the Central Government then the Company shall be punishable with fine of INR 1,000 for every day during which default continues.
2. Further, every officer in default shall be punishable with fine which shall not be less than INR 5,000 but which may extend upto INR 1,00,000.

2 The New Norms On Company Names

Ministry of Law and Justice has notified amendments in Section 16 of Companies Act by the Companies (Amendment) Act, 2020. Rules subordinate to Amended Provisions were notified by the Ministry of Corporate Affairs on July 22, 2021 through The Companies (Incorporation) Fifth Amendment Rules, 2021 ("Amendment") revising the Companies (Incorporation) Rules, 2014. ("Rules"). 

List of amendments related to Company’s Name provisions is given below:

2.1 Action to be taken post receipt of Direction from Central Government:

1. As per Amended Section 16(3) of Companies Act, 2013, if a company fails to change its name as per directions issued by Central Government then Central Government shall allot a new a name to the company.
2. The Name shall be allotted in the manner prescribed under new Rule 33A(Allotment of a new name to an existing company under Section 16(3) of the Act).
3. The Registrar of company shall enter the new name in the Register of Companies  in place of the old name and shall issue a fresh certificate of incorporation with the new name.

2.2 Allotment of new Name by Central Government

1. As per newly inserted Rule 33A, in case a company fails to change its name in accordance with the direction issued by Central Government within a period of 3 months then the letters 'ORDNC' (Order of Regional Director Not Complied), the year of passing of the direction, the serial number and the existing Corporate Identity Number of the company shall become the new name of the company.

For E.g. If an existing Company with Name-ABC Private Limited (CIN: U11111UP1111PTC111111) Company fails to a company with Directors of Central Government issued in 2021 vide S.No. 123456, then, the new name of the company shall be “ORDNC2021123456U11111UP1111PTC111111”

2. However, provisions of Rule 33A shall not apply if the company has filed e-form INC-24- Application for approval of Central Government for change of name. However, such form is outstanding for disposal at the time of expiry of 3 months unless the e-form is later rejected.

3. 登記官は、会社の名称登記簿に新しい名称を記載し、Form No. INC-11Cにて新しい設立証明書を発行します。

4. 規則33Aに基づき、サブ規則(1)に従って名称が変更された会社は、会社法第12条の規定を直ちに遵守しなければなりません。会社名が印刷、貼付、または刻印されているすべての箇所において、その会社名の下に「Order of Regional Director Not Complied (under Section 16 of the Companies Act, 2013)」（地域局長の命令に従わず（2013年会社法第16条に基づく））という文言を印刷、貼付、または刻印する必要があります。

5. ただし、その後会社が会社法第13条（定款の変更）の規定に従って名称を変更した場合、このような通知は不要となります。

6. 本改正は2021年9月1日より施行されます。

3. よくある質問（FAQ）

1. 規則33Aとは何ですか？

2013年会社法規則33Aは、同法第16条(3)に基づく既存会社への新しい名称の割り当てについて定めたものです。これは、新しい「会社名」に関する基準を導入する新設の規則です。

2. 会社名の変更期限はいつまでですか？

同法第16条(1)に記載されている期限は、中央政府による指示の発行日から3ヶ月以内です。

3. 規則を遵守できない場合、会社名はどのようになりますか？

In case of inability to comply with the set rules within the specified time period of three months from the date of issue of such direction, the new name of the company shall be letters 'ORDNC' (Order of Regional Director Not Complied), the year of passing of the direction, the serial number and the existing Corporate Identity Number.