While choosing a name for your One Person Company, it is important to keep several factors in mind. It must have quick recall ability, simple, and follow the guidelines of the Companies Act, 2013. Today, we are going to talk about the factors that constitute an acceptable One Person Company name. Also, some important things that you must remember while naming your OPC.
Components of an acceptable One Person Company name
An acceptable One Person Compay name has three main components:
- Name Part
- Object part
- Constitution
Examples:
Tata Steel Limited
- Name Part = Tata
- Object Part = Steel
- Constitution = Limited Company
LSI Financial Services Private Limited
- Name Part = LSI
- Object Part = Financial Services
- Constitution = Private Limited
Bonwic Technologies (OPC) Private Limited
- Name Part = Bonwic
- Object Part = Technologies
- Constitution = OPC Private Limited
Let’s look at each component separately:
Name part of the One Person Company name
The primary criteria of a One Person Company name are uniqueness and acceptability as per the Companies Act, 2013.
You must ensure that the name is not similar to an existing company or Limited Liability Partnership (LLP)
For example: Let’s say that there is an existing LLP – XYZ Technologies LLP. In such a case, you cannot choose the name XYZ Technologies (OPC) Limited.
Therefore, before you choose a name for your OPC, ensure the uniqueness of the name part. Further, you can do this via the website of the Ministry of Corporate Affairs (MCA). The key lies in staying unique in the industry.
Object part of the One Person Company name
The object part of the name of your OPC defines the nature of its business. It also gives people an idea about the primary business activity of the company. While finalizing the OPC name, you must ensure that the object part is specific (not too vague) and it’s good if it defines the purpose of incorporating the OPC. Some common examples are:
| Aviation | Construction | Designs | Electricals | Energy | Financial Services | Foods | Garments | Hospital | Hotel | Information | Interiors | Manufacturing | Medicals | Mobiles | Motors | Pharmaceuticals | Plastics | Power | Real Estate | Restaurant | Shipping | Solar Power | Steel | Technology | Textiles | Trading | Travels
It is important to remember that entities with a vague object part of the proposed name are not accepted. For example, you cannot register a name like XYZ (OPC) Private Limited or The XYZ Group (OPC) Private Limited. Hence, it is important for the object part to clearly specify the nature of the business of the company.
Constitution part of the OPC name
The constitution part defines the type of business structure:
- If you plan to register a Private Limited Company, then this part is ‘Private Limited’.
- One Person Companies need to ensure that the constitution part contains the terms ‘(OPC) Private Limited.
- LLPs need to ensure that the constitution part contains the terms ‘Limited Liability Partnership’ or ‘LLP’.
Further, the name of a company also determines the minimum authorized capital requirement.
Before applying for a company name, ensure that you visit the website of MCA and check if your proposed name is available.
Summing Up
The name of a business entity is the first thing a customer or vendor hears. A simple, unique, relevant, and easy to remember name ensures that your company is easily recalled and searchable online. We hope that this article helped you understand all the components of a One Person Company name. Follow the tips mentioned above and choose a name that resonates with your business. Good Luck!
