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

Sundaram Traders Pvt Ltd, an existing company, wishes to change its name. Its board proposes a name that is identical to a name already registered by another company in the register of names. Under the Companies Act, 2013, what is the correct legal position?

The proposed name cannot be approved. The Companies Act, 2013 does not allow a company to be registered or renamed with a name identical to, or too nearly resembling, the name of an existing company. Payment of fees, a special resolution or absence of objection does not remove this prohibition.

  1. AThe name can be adopted if the company pays an additional fee to the Registrar
  2. BThe name cannot be approved because a name identical to, or resembling too closely, the name of an existing company is not available for registrationCorrect
  3. CThe name can be adopted if a special resolution is passed by members
  4. DThe name can be adopted if the other company gives no objection within 30 days

Explanation

A company cannot be registered with a name that is identical with or too nearly resembles the name of an existing company or a registered trade mark. A fee, special resolution or silence cannot cure this bar. The special resolution is needed only for the change of name in the usual case, not to override the identity rule.

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