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Company with word 'capital' in its name formation - query!!!

CA Saranya (Practicing Chartered Accountant) (329 Points)

23 June 2012

Dear 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.

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7 Replies

CS Rajveer Rai, Gurgaon (CS) (646 Points)
Replied 23 June 2012

no you may go for subsequent approval before starting business

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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.

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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

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vaibhav (CA & CS) (577 Points)
Replied 23 June 2012

further solution to your query:

Follow following steps :

Incorparate the company
get the DSC of directos registered
Before commencing the business take RBI approval ( if nature is of financial activity )
file various statutory forms with other statutory bodies

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