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CA Intermediate · Corporate and Other Laws · Incorporation of Company and Matters Incidental Thereto

Dinesh Pvt Ltd wants to change its name to a new one. A name is considered undesirable under the Companies (Incorporation) Rules if it is identical or too nearly resembles an existing company's name. Which of the following is the correct position?

A name is undesirable and unavailable if it is identical with, or too nearly resembles, the name of an existing company or a registered trade mark. Merely resembling names are therefore also barred, and use of a place name or the word Limited does not by itself make a name undesirable.

  1. AA name is undesirable only if identical with a registered company, and nearly resembling names are always allowed
  2. BA name that is identical with or too nearly resembles the name of an existing company or a registered trade mark is undesirable and will not be availableCorrect
  3. CAny name containing a place name is undesirable
  4. DA name is undesirable only when it includes the word 'Limited'

Explanation

A proposed name is not available if it is identical with or too nearly resembles the name of an existing company or a registered trade mark, among other grounds. Nearly resembling names are not allowed, so the first option is wrong. Place names are not barred.

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