Name Clause of Memorandum of Association

Name clause is the first clause in memorandum of association of a company. As a company is a separate legal entity different from its shareholders, every company can adopt any suitable name as its identity provided it is not undesirable.

Following are the provisions under Companies Act, 2013 for name clause of memorandum of association.

Section 4(2)

The name stated in memorandum shall not-

(a) be identical with or resemble too near to the name of an existing company registered under this          Act or any previous company law; or
(b) be such that its use by the company-
              (i) will constitute an offence under any law for the time being in force; or
              (ii) is undesirable in the opinion of Central Government.

Section 4(3)

Without prejudice to the provision of section 4(2), a company shall not be registered with a name which contains-

(a) any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Central Government, any State Government, or any local authority, corporation or body constituted by the Central Government or any State      Government under any law for the time being in force; or
(b) such word or expression, as may be prescribed, unless the previous approval of the Central
Government has been obtained for the use of any such word or expression.

Section 4(4)

A person may make an application in form INC1 and manner and fee as may be prescribed to the registrar for the reservation of a name set out in the application as-
(a) the name of the proposed company; or
(b) the name to which the company proposes to change its name.

Section 4(5)(i)

Upon the receipt of an application under section 4(4), the registrar may reserve the name on the basis of informations and documents available for 60 days from the date of application.