Farmer Producer Company in India: Registration & Benefits under Companies Act, 2013

Rules for Selecting Company Name Under the Companies Act

When you select a company name, it must comply with the Companies Act to ensure uniqueness and legal approval. Here are the key rules to follow:

Avoid Similar or Identical Names

Your company name must not closely resemble an already registered business. The ROC conducts a company name check, and if the proposed name is found to be too similar to an existing one, it will be rejected. For example, if "GreenTech Solutions Pvt Ltd" is already registered, "GreenTech Solution Pvt Ltd" may be rejected due to similarity.

Restriction on Certain Words

You cannot use words that suggest a connection with the Central or State Government, local authorities, or government bodies, unless prior approval is obtained. For instance, names like "India National Bank Ltd" or "Government Infrastructure Pvt Ltd" require special permissions.

Prohibited Expressions

Some words and expressions are restricted under Rule 8B of the Incorporation Rules. You must seek approval from the Central Government before using them in your LLP or company name.

Mandatory Suffix for Entity Type

The company name must clearly indicate its legal structure.

• A One Person Company (OPC) should have "(OPC) Private Limited" in its name.
  
• A Private Company must include "Private Limited" (Pvt Ltd).
  
• A Public Company must end with "Limited" (Ltd).

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A Brief About Acceptable Name for LLP

An acceptable LLP or company name in India consists of three key components. The Name Part that gives the business a unique identity, such as "Bright" in Bright Solutions LLP. The Object Part that reflects the company's activity, like "Solutions" indicating a service-based business. The Constitution Part that defines the legal structure, such as "LLP" in Bright Solutions LLP.

Name Part

The Name Part is the unique and distinguishable element of a company or LLP name. It must comply with the Companies Act 2013 or the LLP Act 2008 and should not be identical or deceptively similar to existing companies, LLPs, or registered trademarks within the same industry. The ROC verifies the name to ensure distinctiveness and prevent duplication.

For example, a name like Bluewave Technologies LLP is acceptable because it is unique and clearly identifiable. However, Bluewave Tech LLP may be rejected as it closely resembles an existing name. Similarly, GreenVista Textiles Private Limited is a valid name, but Green Vista Private Limited may be considered too similar to an existing business and could face rejection. Ensuring a distinct name that does not match or closely resemble an existing company improves the chances of approval.

Object Part

The Object Part in a company or LLP name defines its primary business activity. It must be clearly stated to indicate the company's purpose and ensure compliance with naming regulations.

If two companies have similar name parts but different object parts, both names may still be approved, as long as they belong to distinct industries. However, names without a clear object part or with generic words like "dash Private Limited" are too vague and may be rejected by the ROC because it does not specify what the company does.

Related Read: Difference Between LLP and Partnership

Examples of Common Object Parts in Company and LLP Names

Constitution Part

The Constitution Part indicates the legal structure of the business. It must match the type of entity being registered, ensuring clarity in compliance and business operations. Here are the specific terms which are used for different entities:

• Private Limited Company (Pvt Ltd) - For privately held businesses
  
• One Person Company (OPC) - For single-owner companies
  
• Limited Company (Ltd) - For publicly listed businesses
  
• Limited Liability Partnership (LLP) - For partnership-based entities with limited liability
  

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Minimum Authorised Capital For Certain Words

When registering a company, using specific words in its name requires meeting minimum authorised capital requirements as per the Companies Act 2013. Words like "Corporation," "International," and "Industries" have higher capital requirements to ensure that only financially strong businesses use them. This helps maintain credibility and prevents misuse of these terms by companies with limited resources.

Before you apply to register a company name, verifying the capital requirements is essential to ensure compliance and avoid rejection. The table below outlines the required minimum authorised capital for specific words:

When Will Companies House Refuse to Register a Company Name?

Companies House may reject a name if it does not comply with legal guidelines. Below are the key reasons why a company name may be refused:

• Identical or Too Similar to an Existing Name: If the proposed name is the same or closely resembles an already registered company, it will be rejected.
  
• Offensive or Illegal Names: Any name containing offensive, abusive, or illegal terms will not be approved.
  
• Implying Government Affiliation: Names suggesting an association with the government, public authorities, or international organisations require special approval.
  
• Use of Sensitive Words or Symbols: Certain words, such as "Royal," "Bank," or "Trust," require prior consent before use.
  
• Misleading Use of Business Terms: Using terms like "Limited" (Ltd.), "Public Limited Company" (PLC), or "LLP" incorrectly or misleadingly can lead to rejection.
  

Objections to Company Names

Even after registration, objections to a LLP or company name may arise if it does not comply with legal requirements. Ensuring that the name is unique and non-misleading is crucial to avoiding disputes. Common reasons for objections include:

• Too Similar to an Existing Business: If a company name closely resembles another registered entity, the affected business can file an objection.
  
• Misleading Information During Registration: If false or inaccurate details were provided while registering the name, objections may be raised.
  
• Failure to Meet Registration Conditions: A name that does not adhere to naming regulations or lacks necessary approvals may face challenges.
  
• Opportunistic Registration: If a name is registered to take advantage of another company’s goodwill, it can be legally disputed.
  

Related Read: How much does an LLP cost in India?

How to Check Company Name Availability Online?

Before registering a company, you must check whether the proposed name is available to avoid rejection. The Ministry of Corporate Affairs (MCA) portal provides an online tool to verify company name availability. Here’s a step-by-step guide to checking a company name online:

1. Visit the MCA Website: Go to www.mca.gov.in.
2. Access the Name Availability Tool: Under the ‘MCA Services’ section, select ‘For Services’ from the drop-down menu and then select ‘Check Company/LLP Name’.
3. Enter the Proposed Name: Type the desired company name in the search box and click on the ‘Search’ button.
4. Review the Results: The portal will indicate whether the name is available or already registered.

Additional Checks for Better Approval Chances

• Trademark Search: Use the Razorpay Rize Name Search Tool to check for potential trademark conflicts.
• Alternative Name Options: Verify multiple name options to avoid rejection and ensure compliance with naming rules.

Conclusion

Choosing the right company or LLP name is crucial for legal compliance and brand identity. Ensure the name is unique, relevant, and adheres to MCA guidelines to avoid objections. Conduct a thorough name availability check on the MCA portal and verify potential trademark conflicts before finalising a name. A well-chosen name not only simplifies registration but also builds a strong brand identity while ensuring long-term legal compliance.

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Frequently Asked Questions

Eligibility

• For PRISM Phase-1:
  Any Indian citizen, including student innovators, can avail support to develop their novel ideas into demonstrable models/prototypes.
• For PRISM Phase-2:
  PRISM innovators who have demonstrated success or innovators who have proven their concepts with assistance from other government institutions or agencies.

Eligible Sectors for the Scheme

The proposals are encouraged to focus on sectors such as

• Green Technology
• Clean Energy
• Industrial Smart Materials
• Waste to Wealth
• Affordable Healthcare
• Water & Sewage Management
• Other technology or knowledge-intensive areas.

Application procedure for Startups

• Submit your project proposal following the prescribed format to the nearest TePP Outreach cum Cluster Innovation Centres (TOCICs). Here’s a list of TOCICs in India.
• Once received, TOCIC coordinators will review proposals for completeness and forward them further.
• Domain Knowledge Experts associated with TOCIC will then assess the proposals.
• Evaluated proposals are forwarded to DSIR for further action and reviewed by the PRISM Advisory and Screening Committee (PASC) for recommendation.
• Upon Department approval, "Terms & Conditions" must be signed before grants-in-aid release.
• Initial fund release is based on project milestones and PASC recommendations. Subsequent releases depend on project progress evaluated by the Project Review Committee (PRC).
• TOCIC and network partners, along with technical experts, will monitor approved projects.
• TOCIC will provide project status reports to DSIR every 3 months, while PRCs will review project progress at least once every 9 months.
• Upon successful project completion, the DSIR will accept the project completion report based on PRC recommendation.

Benefits of the PRISM Scheme

The PRISM Scheme includes various phases designed to support innovators in different stages of their project development. Each phase may involve different levels of support, resources, and guidance tailored to the specific needs of innovators.

• For Phase-1:
  Category 1: Maximum support within this category is capped at INR 2,00,000 or 90% of the approved project cost, whichever is less.
  Category 2: Maximum support is limited to 20.00 lakh or 90% of the total project cost, whichever is lower.
• For Phase-2:
  For projects with costs ranging from INR 5 Lakhs to INR 35 Lakhs, maximum support of either INR 20 Lakhs or 90% of the total project cost (whichever is lower) is provided.

Please note: If the project beneficiaries abandon the project, innovators must reimburse the funding disbursed, along with a 12% interest rate, to the DSIR.

Frequently Asked Questions

Meaning Of Registered Office Of A Company

The registered office of a company is its principal place of business, serving as its official address for all legal and government-related correspondence. It must be a physical postal address located within the Registrar of Companies (ROC) jurisdiction where the company is registered.

It is not necessarily the same as the place where day-to-day operations are carried out (corporate office or branch office). Instead, it ensures that government authorities and stakeholders know where to contact the company for statutory purposes.

Registered Office Requirement during Company Registration

At the time of incorporation, every company must declare its registered office. For this, certain documents are required:

• Proof of address (electricity bill, water bill, or property tax receipt, not older than 2 months)
• No Objection Certificate (NOC) from the landlord (if the property is rented)
• Rent/lease agreement in case of rented premises, or property ownership documents in case of owned premises

If the company does not have a permanent office at the time of registration, it can declare a temporary address. However, the final registered office must be filed with the ROC using Form INC-22 within 30 days of incorporation.

Importance Of the Registered Office Of A Company

Declaring and maintaining a registered office is a legal mandate under the Companies Act, 2013. Its importance can be summarised as follows:

• Legal Compliance: A company must have a registered office within 30 days of incorporation.
• Official Address for Communication: All government notices, summons, and correspondence are sent to this address.
• Use on Official Documents: The registered office address must be printed on all letterheads, invoices, business correspondence, and official publications.
• Jurisdictional Relevance: It determines the ROC jurisdiction under which the company falls and where records are maintained.

Without a registered office, a company cannot be considered legally compliant.

Change In The Registered Office Of A Company

Companies may shift their registered office after incorporation. The process depends on the nature of the change:

1. Change within the same city/town/local limits: Notify the ROC by filing Form INC-22 within 15 days.
2. Change outside local limits but within the same ROC jurisdiction: Requires passing a special resolution and filing with the ROC.
3. Change from one ROC jurisdiction to another (state-level change): Needs approval from the Regional Director, shareholder consent via special resolution, and filing of required forms (INC-22 & MGT-7).

In every case, the company must update its address on all official documents.

Registered Office of an LLP

Like companies, Limited Liability Partnerships (LLPs) are also required to declare a registered office during incorporation. This is where all legal and government correspondence is sent. Any change must be filed with the ROC using Form 15.

Register your LLP and enjoy flexibility with limited liability protection.

Registered Office of a Private Limited Company

A Private Limited Company must declare its registered office within 30 days of incorporation and notify the ROC of any change through Form INC-22. It acts as the official point of communication and is used on all business documents.

Set up your Private Limited Company to gain credibility and attract investors.

Registered Office of a One Person Company (OPC)

For an OPC, the registered office requirement is the same as that of other companies. It must be declared during incorporation, and any changes should be reported to the ROC. Since OPCs have single ownership, the registered office is key in establishing legal identity.

Incorporate your OPC to run your business independently with limited liability.

Difference Between A Registered Office And A Corporate Office

Many businesses confuse the registered office with the corporate office, but they serve different purposes:

• Registered Office:
  
  
  • Legal requirement under the Companies Act
  • Official address for receiving government and legal communications
  • Determines the jurisdiction of the ROC
  • Must appear on all statutory documents
    
    
• Corporate Office:
  
  
  • Operational headquarters of the company
  • Where executives and employees manage daily business activities
  • Focuses on decision-making, sales, and operations
  • Not a legal mandate under the Companies Act

In simple terms, the registered office gives the company its legal identity, while the corporate office drives its business operations.

Frequently Asked Questions (FAQs)