LawEddie.com

After you have decided what kind of business entity that you want to use to start your business (refer to my previous post), now it is the time you need to pick a good name for your business or company.

Can you just choose any company name as you like? is there any guideline to be look at when you are deciding a name?

Under section 22(1) of the Companies Act 1965, a company name will not be allowed by the CCM if in the opinion of the Registrar such name is “undesirable” or is a name that the Minister directed the Registrar not to accept. 

The key point here is what constitute “undesirable”? It seems very subjective in nature.

However, based on some decided cases and authorities, a company name is “undesirable” when such name:

1. is ”calculated to misled the public”;

2. is a name of “obscene in nature”;

3. might “offend a freindly state”;

4. may offend “public policy”;

5. may offend “public or members of a religious group”;

6. may “confuse the public” (due to its similarity to other company or sound deceptive).

Of course the above list is not exclusive.    

After your proposed name is approved, you may reserve the proposed company name for a period of 3 months under section 22(7) of the Companies Acr 1965. During such reservation period, no one is entitled to register under the reserved name. 

 As such, next time when you want to think about a name for your company make sure your proposed name does not fall under any of the above categories, otherwise, the chance of being rejected by the CCM is very high.