Private vs Public Company: Key Differences Under the Companies Act
"Public company" doesn't mean a listed company, and "private" doesn't mean small. The difference under the Companies Act, 2013 is about who can own shares, how freely they can be s…

Check company name availability in India in 2026 and reserve it correctly through MCA SPICe+ Part A. Learn similarity, trademark and rejection rules.
Last verified: 28 September 2026. For a new company, formal name reservation is through SPICe+ Part A on MCA21 V3. RUN is not the normal new-company name-reservation route; MCA identifies RUN as the service for changing the name of an existing company.
A good company name must do more than look unique on Google. It must satisfy MCA’s incorporation rules and should also be screened for trademark conflicts.
Separate the distinctive brand element from generic words.
Example:
“BluePeak Renewable Energy Private Limited”
Distinctive part: BluePeak
Descriptive part: Renewable Energy
Entity suffix: Private Limited
MCA name comparison can disregard common suffixes, punctuation, spacing and some other superficial differences.
Use the official MCA portal Official ↗ to search company/LLP master data and similar names.
Try:
A no-result search is helpful, but it is not formal approval.
Before filing, search the proposed brand through IP India’s trademark search system in the relevant classes.
Company-law approval does not automatically protect you from trademark infringement.
A distinctive name can still be refused or create legal risk if it conflicts with an existing mark.
The Companies (Incorporation) Rules contain detailed tests for names that resemble existing company names too closely.
MCA’s rule material specifically explains that differences such as:
may be disregarded when comparing names.
This is why changing “Technology” to “Technologies” or inserting punctuation may not create a genuinely new name.
The name should make sense for the company’s proposed activities.
Names using words associated with finance, insurance, stock exchange, banking, professional bodies, government institutions or other regulated activities can require additional scrutiny or approval.
Do not add regulated-sounding words merely for branding.
For a new company, log in to MCA21 V3 and use SPICe+ Part A.
MCA’s incorporation FAQ states:
MCA provides paid extensions of the reservation period up to 60 days under the V3 workflow.
If a company already exists and wants to change its legal name, MCA’s FAQ identifies RUN (Reserve Unique Name) as the relevant name-reservation service.
This distinction matters because many older guides still describe RUN as the default route for new-company name reservation.
| Problem | Better approach |
|---|---|
| Only “Private Limited” differs | Change the distinctive portion |
| Singular/plural change only | Choose a genuinely different name |
| Trademark conflict | Select another mark or obtain proper rights/consent where legally relevant |
| Regulated word without approval | Remove it or obtain required approval |
| Name unrelated to objects | Align name and proposed business |
| Generic/descriptive wording | Add a distinctive coined/brand element |
TaxQue can help screen your proposed company name and prepare the incorporation filing.
Information note: A preliminary search does not guarantee MCA approval or trademark clearance.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
Comments are moderated. Only English and Hindi comments from verified Indian users are published.
"Public company" doesn't mean a listed company, and "private" doesn't mean small. The difference under the Companies Act, 2013 is about who can own shares, how freely they can be s…
A private limited company is the standard structure for a business that wants to grow, raise money or simply keep business risk away from the owners' homes and savings. It also bri…
A sole proprietorship is the quickest and cheapest way to start, but you are personally liable for every debt and it is hard to raise money. A private limited company costs more to…
From company registration and GST filings to annual MCA audits and tax planning, TaxQue provides complete consulting solutions for startups and enterprises.
Get expert tax tips, GST updates & compliance guides delivered to your inbox.
🔒 No spam. Unsubscribe anytime.