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Using of word "bank" for incorporating a public company

Deepti Aggarwal (Assistant Company Secretary) (143 Points)

12 April 2013

hey Frnds,

Plz tell me that if we want to use the word "Bank" or "India" in the name of the public company while appyling for name approval like " Acme India Ltd" or "Matrbhoomi bank Ltd" then in that case, do we have make some extra compliances such as any RBI Approval or something along with filling form 1A and then Form 1, 18, 32 and finally Form 20 with attachments..??

waiting for reply..!!!

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2 Replies

Sneha (Company Secretary) (1594 Points)
Replied 12 April 2013

Here’s the list of prescribed minimum authorised share capital amount for use of certain words in the name (Amount in INR):

5 lacs – For the words Hindustan, India, Bharat within the name (with or without bracket).

10 lacs – For the words Enterprise, Products, Business and Manufacturing

50 lacs – For the words International, Global, Universal, Continental, Intercontinental, Asiatic, Asia used within the name (with or without bracket).

50 lacs – Hindustan, India, Bharat, being the first word of the name

1 crore – International, Global, Universal, Continental, Intercontinental, Asiatic, Asia as first word, and the word Industry and Udhyog anywhere in the name.

5 crore — The word ‘Corporation’ anywhere in the name.

You can even refer to Circular F. No. 27/1/87 dated 13-3-1989 for further details.

Kamal Lahoty (Practising Company Secretary) (274 Points)
Replied 29 April 2013

Dear Deepti & Sneha,

As per General Circular No. 45/2011 (Name availability Guidelines); use of certain words for minimum authorised capital has been done away with as the said circular heading reads as

"In supercession of all the previous circulars and instructions issued by Ministry of Corporate Affairs from time to time regarding name availability, the applicants and Registrar of Companies are advised to adhere following guidelines while applying or approving a name."

The above circular does not speak about the need of minimum authoried capital for certain words.

So going by the above circular you can very well incorporate a company with Rs. 1 lakh auth capital irrespective of words used. (be it CORPORATION or INDIA or any other words).

Quick link to the said circular: https://www.mca.gov.in/Ministry/pdf/Circular_45-2011_08july2011.pdf