Common Reasons for Rejection
A business name can be rejected for several reasons. It could be because it too closely resembles an existing business name, or perhaps it’s considered too generic or offensive. Other factors include the length of the name or its complexity, making it difficult to pronounce or spell.
Filing and Legal Issues
Filing for an LLC might result in rejection due to incomplete submissions or failure to specify liabilities. Companies often overlook the need to file required documents like annual reports or to pay necessary registration fees and taxes. These oversights can result in delayed processing or outright rejection.
Choosing the Right Name
When registering a company or business name, it is crucial to conduct research and ensure that the name does not encounter the common pitfalls of rejection. It is always advisable to choose a name in accordance with the prevailing naming rules and regulations, such as those outlined in the Companies Act.
Expedited Options and Legal Entity Status
While rejections in the secretary of state office might take weeks, expedited options are typically available. Once an LLC’s articles are approved and filed, the company becomes a legal business entity. If a proposed name is rejected, some jurisdictions allow a company to be registered with its registration number serving as a temporary name until an acceptable one is reserved.
Remember, to enhance the chances of acceptance, ensure all questions on applications are answered, avoiding blanks, and make sure all required attachments are included.
The MCA has introduced Fast Track Company Incorporation through Form INC 29, which limits applicants to one name choice. If the name is rejected by the ROC, the entire form must be resubmitted, which underscores the importance of careful name selection.