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Microlesson · 5-min read

Name Clause - Reservation of Name (Section 4)

# Name Clause - Reservation of Name [Section 4(1)(a) read with Sub-sections 2 to 5]

## Basic Naming Requirement

The name of the company must end with:

  • "Limited" — in case of a public limited company
  • "Private Limited" — in case of a private limited company

## Restricted Words

If the proposed name includes words such as 'Insurance', 'Bank', 'Stock Exchange', 'Venture Capital', 'Asset Management', 'Nidhi', 'Mutual Fund', etc., the name will not be approved unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator (IRDA, RBI, SEBI, MCA, etc.) have been complied with.

## Application for Reserving Name [Sub-section 4]

### For Proposed (New) Company

  • File in SPICe+ (INC-32) — Simplified Proforma for Incorporating Company Electronically Plus
  • Accompanied by prescribed fee under Companies (Registration Offices and Fees) Rules, 2014
  • Submitted to the Registrar of Companies
  • Resubmission allowed within 15 days for rectification of defect

### For Change of Name of Existing Company

  • File using web service RUN (Reserve Unique Name)
  • Accompanied by prescribed fee
  • Resubmission allowed within 15 days for rectification of defect

## Quick Comparison Table

PurposeForm Used
Reserve name for new company (incorporation)SPICe+ (INC-32)
Reserve name for change of existing company's nameRUN (Reserve Unique Name)
Resubmission period15 days

Worked example

### Example 1

Example: ABC Bank Limited wants to incorporate as a company. Can the name be reserved by simply filing SPICe+ form?

Answer: No. Since the name contains the word 'Bank', a declaration must accompany the application showing that the requirements mandated by the RBI have been complied with. Only then can the name be reserved.

### Example 2

Example: XYZ Private Limited applied for name reservation in SPICe+ but there was a defect in the application. Within what time can it resubmit?

Answer: Resubmission is allowed within 15 days for rectification of the defect.

⚠️ Common exam mistakes

  • Confusing SPICe+ (used for new incorporation) with RUN (used for change of name of existing company).
  • Forgetting that words like 'Bank', 'Insurance', 'Nidhi' require a regulator-compliance declaration.
  • Assuming the 15-day resubmission period restarts — it is a single window from initial filing.
Bare-Act text Section 4(1)(a) read with Sub-sections 2-5 · The Companies Act, 2013 · click to expand
The name of the company with the last word 'Limited' in the case of a public limited company, or 'Private Limited' in the case of a private limited company.
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