MCA Advisory on Name Reservation and Incorporation of Companies and LLPs

The Ministry of Corporate Affairs (MCA) issued an advisory on 13 March 2026 providing detailed guidance to stakeholders regarding name reservation and incorporation of companies and Limited Liability Partnerships (LLPs). The advisory highlights important compliance requirements that applicants must follow while proposing company names and filing incorporation forms.

Key Takeaways

• The Ministry of Corporate Affairs (MCA) issued an advisory on 13 March 2026 providing detailed guidance to stakeholders regarding name reservation and incorporation of companies and Limited Liability Partnerships (LLPs).
• The VakilKaro Brief: MCA Issues Advisory on Company and LLP Name Reservation The Update The MCA issued an advisory providing guidelines for name reservation and incorporation of companies and LLPs.
• MCA Advisory Overview The MCA advisory aims to improve the accuracy and compliance of applications filed for name reservation and incorporation of companies and LLPs.
• Rules for Name Reservation of Companies and LLPs One of the key aspects of the advisory relates to selecting a unique and distinctive name.
• Conclusion The MCA advisory provides comprehensive guidance to ensure that applications for name reservation and incorporation of companies and LLPs are compliant with statutory requirements.

The VakilKaro Brief: MCA Issues Advisory on Company and LLP Name Reservation

The Update

The MCA issued an advisory providing guidelines for name reservation and incorporation of companies and LLPs.

The Impact

Applicants must ensure that proposed names are unique, regulatory approvals are obtained where necessary, and incorporation documents comply with MCA rules.

The Action

Entrepreneurs and professionals filing incorporation applications should carefully verify name availability, regulatory approvals, and documentation before submission.

MCA Advisory Overview

The MCA advisory aims to improve the accuracy and compliance of applications filed for name reservation and incorporation of companies and LLPs. The ministry observed that many applications are rejected due to similarity of names, incorrect documentation, or inconsistency in objects and business activity codes.

The advisory therefore provides guidance on name selection, regulatory approvals, registered office documentation, and procedural requirements under the Companies Act, 2013 and the LLP Act, 2008.

Rules for Name Reservation of Companies and LLPs

One of the key aspects of the advisory relates to selecting a unique and distinctive name.

Applicants must ensure that the proposed name does not closely resemble the name of an existing company, LLP, or well-known brand. Phonetic similarity is also considered when determining resemblance.

The advisory also clarifies that a No Objection Certificate will not be accepted where the proposed name is identical or too similar to an existing entity.

The MCA has also prescribed time restrictions for reuse of certain names.

Situation Restriction Period

Name of company dissolved after liquidation 2 years

Name of struck-off company 20 years

Name of LLP in liquidation or struck off 5 years

Old name of company after name change 3 years

These restrictions aim to prevent confusion in the corporate registry.

Regulatory Approvals Required for Certain Names

The advisory states that certain words in the proposed company name require approval from regulatory authorities or professional institutes.

Examples include:

• “Bank” – approval from the relevant banking regulator

• “Insurance” – approval from the insurance regulator

• “Architect” – approval from the Council of Architecture

• “Chartered Accountants”, “Company Secretaries”, or “Cost Accountants” – approval from respective professional institutes

Similarly, if the proposed name includes words such as “Stock Exchange,” “Mutual Fund,” “Asset Management,” or “Venture Capital,” the applicant must undertake to obtain approvals from the relevant regulator before commencing such business activities.

Restrictions on Names and Business Objects

The MCA advisory also specifies several restrictions relating to names and business activities.

For example, names implying association with the Central Government, State Government, or any statutory authority will not be approved.

Similarly, names using foreign country or city references such as “Italy,” “Shanghai,” or similar expressions may be rejected.

The advisory also clarifies that LLPs cannot undertake activities that are typically associated with Non-Banking Financial Companies (NBFCs), such as lending, investment in securities, or similar financial services.

NIC codes selected in incorporation forms must match the proposed business objects mentioned in the Memorandum of Association.

Incorporation Documentation Requirements

The advisory provides several practical instructions regarding documentation for incorporation.

Applicants must ensure that the registered office address is supported by valid documentation such as a utility bill not older than two months and a No Objection Certificate from the property owner.

Where the premises are leased or sub-leased, relevant lease agreements must be attached.

Additionally, the address mentioned in incorporation forms must exactly match the address mentioned in supporting documents.

Any documents written in vernacular languages must be translated into English or Hindi and certified by a professional.

Special Compliance Rules for Section 8 Companies and OPCs

The advisory also highlights specific compliance requirements for Section 8 companies and One Person Companies.

For Section 8 companies, the proposed name must include words such as Foundation, Association, Federation, Council, Forum, or similar expressions that reflect non-profit objectives.

Section 8 companies are not permitted to engage in commercial investment activities such as money market operations.

For One Person Companies, the advisory reiterates that such entities cannot carry on NBFC activities or invest in securities of other companies.

LLP Incorporation and Conversion Requirements

For LLP incorporation, designated partners must possess approved DIN or DPIN status. If they do not have valid identification numbers, additional documentation such as Form 9 must be submitted.

Subscriber sheets must be properly signed and witnessed. Where documents are signed outside India, they must be notarized and apostilled or consularized.

The advisory also states that during conversion of companies or firms into LLPs, the shareholding or partnership pattern must match the details reported in earlier filings.

Conclusion

The MCA advisory provides comprehensive guidance to ensure that applications for name reservation and incorporation of companies and LLPs are compliant with statutory requirements.

By clarifying rules on name selection, regulatory approvals, documentation, and business activity restrictions, the advisory aims to reduce rejection of incorporation applications and improve the efficiency of the registration process.

Applicants and professionals involved in company or LLP incorporation should carefully follow these guidelines to avoid delays and ensure smooth approval of their filings.

ABOUT VAKILKARO

Vakilkaro is a trusted legal and compliance advisory platform that helps businesses and professionals stay ahead of evolving regulatory requirements in India. With a strong focus on corporate law like private limited company registration, limited liability company registration, etc. MCA compliance, and director obligations, Vakilkaro simplifies complex legal updates into clear, actionable guidance.

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Official External Resources

Use these primary/official sources to verify rules, forms, fees, timelines and regulatory updates before publication.

• Ministry of Corporate Affairs (MCA)
• India Code - Central Acts