CA Saranya (Practicing Chartered Accountant) (329 Points)
23 June 2012Dear Friends,
We are about to incorporate a Company. The query here is the company name contains 'Capital' in its name. Eg. XYZ Group Capital Limited. Do we require get RBI approval to use such word??? Pls help me resolve this query. Thanks.
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 23 June 2012
no you may go for subsequent approval before starting business
CA Saranya
(Practicing Chartered Accountant)
(329 Points)
Replied 23 June 2012
Thanks for your reply sir. Before starting business we should get RBI approval. Is it so?? or its optional??? Will it hinder the formation process if we didnt get the approval beforehand???
vaibhav
(CA & CS)
(577 Points)
Replied 23 June 2012
Hi,
the word " capital" are generally used by Financial companies.
As per law there is no restriction to have prior approval of RBI for selection of name with the word "capital". You can go ahead with filing form 1A with ROC.
Anshul Mittal
(Freelancing)
(741 Points)
Replied 23 June 2012
Check this link for Further information,,,, See page no.5,,
https://www.mca.gov.in/Ministry/pdf/Circular_45-2011_08july2011.pdf
vaibhav
(CA & CS)
(577 Points)
Replied 23 June 2012
further solution to your query:
Follow following steps :
CA Saranya
(Practicing Chartered Accountant)
(329 Points)
Replied 23 June 2012
Thanks Mr.Vaibhav. Sorry for asking too many questions. Pls tell me the procedure as to how to get RBI approval?? Doing all these for first time..
vaibhav
(CA & CS)
(577 Points)
Replied 23 June 2012
Saranya u dont have to be sorry ......
Generally ther are 2 ways to get RBI approval:
1) By sending the details to authorised agent ( bank ) who in return file documents with RBI on company behalf.
2 ) By sending documents directly to RBI
I guess in your case you have to directly approch to the RBI for giving you the permission to start the business.
vaibhav_sisodiya @ yahoo.com
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