Guidelines To Approve Firm’s Name

Revised Guidelines for name of a Proprietorship concern / Firm / Trade

 

The Guidelines of the Council for name of a Proprietorship concern / Firm / Trade under Regulation 169 of the Company Secretaries Regulations, 1982.

 

1.       A trade or firm or concern name shall be restricted to the name(s) of the proprietor/partners or a name which is already in use.

 

2.       A trade/firm name may include the name(s) of the member(s) as it/they appear in the Register of Members in the following manner:

 

(i)         For Sole proprietorship concern:

(a)       Name comprising first name and/or middle name and/or surname of the member, in any order, with or without commonly used suffix or prefix

(b)       Initials of the first name and/or middle name and/or surname, in whichever order

 (c)   Combination of (a) and (b) above, in any order

(d)        Parts of or prevalent abbreviations of or acronyms of commonly used names alongwith any combination referred to in (c) above

 

(ii)        For Partnership firm:

(a)       Full surnames of two or more partners

(b)       Full first names of two or more partners

(c)       Combination of first names and / or middle names and/or surnames of two or more partners with or without commonly used suffix or prefix

(d)       Combination of initials of first names and/or middle names and/or surnames of the two or more partners

(e)       Combination of (c) and (d) above, in any order

3.       General

(i)          A trade or firm name shall not be approved if the same or similar or nearly similar name is already used by a Company Secretary in practice or which resembles the name of Company Secretary in practice or firm of such Company Secretaries and has been entered in the Register of office of firms.

(ii)        A trade/firm name shall not contravene the provisions of The Names and Emblems (Prevention of Improper Use) Act, 1950 or any modification/re-enactment thereof.

(iii)       The trade or firm name may be suffixed by the suffixes “& Co.”, “& Company” or “& Associates”. However, any suffixes that may be considered undesirable by the Council shall not be allowed.

(iv)       The word “and”/ “&”could be used in between the first name/middle name/surname including initials thereof, of the partners of the firm.

(v)        A firm name may also be allowed without the use of the suffixes “& Co.”, “& Company” or “& Associates” provided full first names and/or full middle names and/or full surnames of the partners are used. Also, in such cases, the word “&”/”and” is compulsorily to be used either in between the full first names and/or full middle names and/or full surnames of the partners or before the last full first name/full middle name/full surname of the partners.

(vi)       The name of a sole proprietorship concern shall not be allowed without the use of suffixes “& Co.” / “and Company” / “& Associates”.

(vii)     A trade/firm name, which has no relationship with the name of member(s) as above, shall not be allowed.

(viii)    Descriptive trade/firm names viz. Fire, Smash, Leader, Champion, Mastermind, Super, Supreme etc.shall not be allowed.

(ix)       Trade/firm names denoting publicity shall not be allowed. Any trade/firm name, regardless of reason or logic, using the initials, acronyms or full forms of any profession whether used individually and/or collectively and/or in any order, shall not be allowed. The use, therefore, of CA, CS, CMA, MBA, CACMA, CACS, CSCA, CSCMA, CMACS, CMACA, Secretary,Accountant, Management, Chartered Accountant, Cost Accountant, Chartered Secretary etc., shall not be allowed.However, trade/firm names matching with the group name/theme shall be allowed, if the same is not in contradiction with any other criteria.

(x)        The name, middle name and surname of the member shall conform to the name, middle name and surname as they appear in the register of members.

(xi)       In case any change in the status of the firm from individual firm to partnership firm or vice-versa, the firm name already been in use by any of the partner or individual could be approved provided there is no objection by any of the partners or individual.

(xii)     A trade/firm name which was in use by a proprietor or partners shall not be allowed to any other member or members for a period of three years of the closure of firm. The name may be re-allotted to the same member or members’ upto a period of three years of the closer of the firm. In the event of removal of name of a practising member, after the expiry of the period of three years, the said trade/firm may be allowed to any member or members who are eligible for allotment of such name under the guidelines.

(xiii)    After various permutations and combinations under guidelines 2(i) and (ii) have been exhausted and the member is not able to get approval of firm/trade name in accordance with the same, he may be permitted to adopt or coin a firm/trade name out of the names of his/her family members provided that such name was not already registered by some other members. The terms “family” for this purpose means husband, wife, father, mother, son and daughter.  An affidavit or other evidence to the satisfaction of the Secretary is to be produced in such cases.

(xiv)    Any reconstitution of the firm with the same firm name shallnot have effect except with the prior approval of the Council pursuant to Regulation 170.

(xv)     Approval accorded by the ICSI for any trade/firm name shallnot tantamount to any protection by the ICSI in case of any dispute arises affecting to Intellectual Property Rights between any trade/firm with any other brand, entity, business etc., outside the profession and in relation to the name in dispute. The responsibility and liability in such cases shall solely be of the concerned trade/firm and at its own risk and costs and not of the ICSI. The ICSI shall not be any party to any kind of dispute that may arise in this regard.

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236th meeting of the Council held on 29-30th March, 2016