I reside in Bareilly,Uttar Pradesh (UP) along with my family. Recently me and one of my friend Lakshay have thought of opening a company for producing food items like biscuit, cookies (and more once we start earning profit).
However, we've been struggling for a suitable name for our company because any name that we came across is either already in use by a manufacturing unit or almost similar to what are existing in market!
So I had few queries regarding our business plans that I would like to be answered.
1.) Can we have a name which might be slightly similar to any other company?
2.) Which type of organisational form will be better for such a business Partnership or LLC?
3.) Since we both reside in same place, I wanted to enquire about when and where should we get our company incorporated?Can we get our company incorporated in any other district of UP?
Thanks in advance.
Greetings,
1) If you have found a business name you would like to use, it would be suggested that you file an Intent to Use application with the Patent & Trademark Office to officially register your business under the desired name. However, before applying for a company name in India, stakeholder must ensure that the proposed name does not contain any word prohibited under sec. 3 & 4(2) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2013. Rule 8 of the Companies Rules, 2013, while determining the originality of the proposed name, disregards differences on account of the following:
(a) the words like Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership;
(b) words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.;
(c) plural version of any of the words appearing in the name;
(d) type and case of letters, spacing between letters and punctuation marks;
(e) joining words together or separating the words;
(f) use of a different tense or number of the same word does not distinguish one name from another;
(g) using different phonetic spellings or spelling variations
(h) misspelled words, whether intentionally misspelled or not, do not conflict with the similar, properly spelled words;
(i) the addition of an internet related designation, such as .com, .net, .edu, .gov, .org, even where (.) is written as ‘dot’;
(j) the addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc.
(k) different combination of the same words
2) Regarding the form of organisation for your business setup, you have a few options to consider - partnership, LLP, LLC
In case of a partnership, both the original partners own and operate the business with equal rights and personal liabilities at stake for the business.
LLP is limited liability partnership, which is basically a general partnership, but with limited personal liabilities on the partners.
LLC is a limited liability company, which can be formed with min. 1 owner. Different from a corporation, an LLC has members instead of shareholders.
As far as partnership versus LLC goes, in terms of personal liability, it is always safer to go with LLC. However, registration, filing fee, legal fee and setup costs for an LLC are higher compared to that of partnership. An LLC also provides with more comprehensive protection compared to the limited personal liability offered by an LLP.
3) As per the Indian Partnership (U.P Amendment) Act, 2001, a firm can be registered at any time not only at the time of its formation by subsequently filing an application with Registrar of Firms, office of Registrar. Partnership Firm registration has to be done in the State where the Partnership firm is situated or proposed to be situated. Minimum 2 and maximum 19 members can form a partnership firm.
Hope this solves your queries!
Regards.
