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Query abour Corporation

RAMU G (Chartered Accountant) (158 Points)

11 April 2010

Is it possible to incorpoarate a pvt ltd or firm with the word contaianting corporation in its name.if yes what is the procedure to be follow for the above incorporation.

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CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 12 April 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]