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company incorporation

sandhya sethia (trainee) (142 Points)

01 October 2010

in case we are getting a pvt company incorporated and we are using the word international

is there any statutory requirement for minimum authorised capital to have

plz rply as soon a spossible

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5 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 01 October 2010

Dear Ms. Sandhya

As per Circular No. 27/1/87/CL.III, dated 13-3-1989, when you are using the word “International being the first of the name of the company, the minimum authorized capital of the company should be one crore.

But International word is used with in the name, like RXC International Limited, (with or without brackets)the minimum authorized capital of the company should be 50 lakh.

Regards

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CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 02 October 2010

Guidelines as to use of Key words

“With a view to maintain uniformity, the following guidelines may be followed in the use of keywords, as part of name, while making available the proposed names under section 20 and 21 of the Companies Act, 1956

S.No	Key Words	Required Authorized Capital
1	Corporation	Rs. 5 Crore
2	International, Globe, Universal, Continental, Inter Continental, Asiatic, Asia being the first word of the name	Rs. 1 Crore
3	If any of the words at (2) above is used within the name (with or without brackets)	Rs. 50 Lakh
4	Hindustan, India, Bharat being first word of the name	Rs. 50 Lakh
5	If any of the words at (4) above is used within the name (with or without brackets)	Rs. 5 Lakh
6	Industries / Udyog	Rs. 1 Crore
7	Enterprises, Products, Business, Manufacturing	Rs. 10 Lakh

A name which falls within the categories mentioned below will not generally be made available:

9. If it connotes Government’s participation or patronage unless circumstances justify it. E.g., a name may be deemed undesirable in certain context if it includes any of the words such as National, Union, Central, Federal,
Republic, President, Rashtrapathi, Small-Scale Industries, Cottage Industries and Financial Corporation etc.

26. If the proposed name includes the word “Corporation” unless the company could be recorded as a big sized company. However, the word “Corporation” and “Company” may be regarded as closely resembling for purposes of allowing a new name. For example, a company by the name of Rajasthan Finance Company should be regarded as undesirable within the meaning of section 20 of the Act as another company by name “Rajasthan Finance Corporation” already exists.

The word “Hindustan” should be kept reserved only for public sector companies. It may, however, be allowed to be used in the names of the private sector companies in a large way of business. Similarly the word “Corporation” may be allowed in the name of the company in case the authorized capital is more than Rs. 5 crores. [Circular No. 16/74 – F.No.27/9/74-CL-III dated 27.08.1974]

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 02 October 2010

Dear Ajay...

Can you please give that circular from which u said mentioned in ur reply?

thanks

CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 02 October 2010

Please check this forum too...

PAIDUP CAPITAL FOR CORPORATION??

Ajay Mishra (Company Secretary) (74337 Points)
Replied 04 October 2010

_{Guidelines as to use of Key words}

“With a view to maintain uniformity, the following guidelines may be followed in the use of keywords, as part of name, while making available

_t_h_e_p_r_o_p_o_s_e_{d names under section 20 and 21 of the Companies Act, 1956}

#	Key Words	Required Authorized Capital
1	Corporation	Rs. 5 Crore
2	International, Globe, Universal, Continental, Inter Continental, Asiatic, Asia being the first word of the name	Rs. 1 Crore
3	If any of the words at (2) above is used within the name (with or without brackets)	Rs. 50 Lakh
4	Hindustan, India, Bharat being first word of the name	Rs. 50 Lakh
5	If any of the words at (4) above is used within the name (with or without brackets)	Rs. 5 Lakh
6	Industries / Udyog	Rs. 1 Crore
7	Enterprises, Products, Business, Manufacturing	Rs. 10 Lakh

2. These names with key words at Serial Nos. (6) And (7) may be considered when the company proposes to deal in various business activities or the company is already carrying on various business activities (in the case of change of name). F. No. 27/1/87-CL-III dated 13-03-1989: (1989) 65 com cases 536 (St.)