Govt plans to amend norms pertaining to incorporation of companies

The Corporate Affairs Ministry plans to amend the rules for incorporation of companies as part of efforts to provide more clarity on norms related to availability of names.

The ministry, which is implementing the Companies Act, has sought comments from the public on the proposed changes to the rules.

Suggestions along with justification have to be submitted by December 31, according to a communication.

The ministry said amendment is proposed to the Companies (Incorporation) Rules, 2014

The amendment "intends to bring more clarity to the rules related to name availability" by including illustrations and providing a clear test to determine as to whether the applied name resembles too nearly with the name of an existing company.

Besides, the ministry is looking to bring more clarity in the rule related to "general names/ descriptive names and trademark applicability", as per the communication.