Section 16 of the Companies Act, 2013
Section 16 of the Companies Act, 2013 is titled:
"Rectification of name of company"
This section deals with changing the name of a company if it is identical or too similar to an existing company or a registered trademark.
🔹 Full Text of Section 16 (as amended):
(1) If, through inadvertence or otherwise, a company is registered with a name that:
(a) is identical with or too nearly resembles the name of an existing company, or
(b) is identical with or resembles a registered trademark under the Trade Marks Act, 1999,
then:
The Central Government may, on an application made within 3 years from the date of incorporation or registration or on its own, direct the company to change its name.
(2) The company must comply with this direction within 3 months from the date of such direction.
If it fails, the Central Government shall allot a new name, and the Registrar shall enter the new name in the register of companies.
The company must use the new name thereafter.
(3) Nothing in this section shall apply to a company that has been dissolved.
🔹 Key Points in Simple Words:
If your company name is too similar to another company or trademark, the government can ask you to change it.
You must comply within 3 months.
If you don't, the government will give your company a new name automatically.
This rule only applies within 3 years of the company being registered.
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