Get To Know Why Your Preferred Company Name Might Be Declined.

Registration of company name is regulated by the provisions of Companies Act 2015 and the underpinning Regulations thereof, for one to successfully register a company, one must first reserve the preferred name. Whereas one is at liberty to choose any name as a preferred name, it must be noted that such discretion is subject to various restrictions. This article will highlight the reasons provided in law and in practice on why your preferred name may be rejected at the point of reservation.

1) Proposed name is similar to an existing Company/Business / Limited Liability Partnerships or Partnership.

Regulation 11 of Companies Act 2015, states that the Registrar may refuse to reserve or register a name which is;

i. Identical to an existing/registered name;

ii. Phonetically similar to an existing/registered name;

iii. Identical to an existing/registered name only that it has been modified by adding commonly used words that aren’t unique e.g. adding Limited, Kenya etc.;

iv. Identical or closely resembles the name of Company /Limited Liability Partnership that has been dissolved/struck off or in case of Business /Limited Partnerships which have been cancelled from the register.

2) Name is a ‘prohibited’ name.

Prohibited names are restricted to protect the public from abuse especially misnaming the company or misrepresenting its objective with an aim to mislead or exploit them. Section 49 of the Companies Act states that the registrar may refuse to register the name if;

i. The use of the name would consist of an offence;

ii. It consists of abbreviations or initials not authorized by or under the Companies Act, for example using abbreviations that will render the use company name vague or uncertain; and

iii. The Registrar reasonably believes that the name is offensive or undesirable pursuant to the criteria supposed to be applied as stipulated under Regulation 12 of the Companies Act;

3) Names suggesting connection with the State or Local or Public Authority

Section 50 of the Companies Act,2015, provides that a name that suggests being in connection with any State organ, County Government or any Public Authority cannot be registered. For example, a name that starts with Kenya XXXX Ltd, National XXXX Ltd etc.

How can we help?

Please Get in touch with us today for:

•  Comprehensive advisory on registration of Company name;
• Protection of your brand or company name;
• Deregistration of similar names still ongoing; and
• Any other Company Law related issue.

Contact Persons & Contributors

Victorine ROTICH- Senior Associate 

Wahu WAMBUGU- Lawyer

Conclusion

For any enquiries on this or any other matter do not hesitate to contact us via email our Commercial/Business Law practice group through law@cmadvocates.com or book a virtual consultation here Contact Us - CM Advocates LLP

Disclaimer

This article is for informational purposes only and should not be construed as legal advice.