Yes, there are specific naming restrictions for Company Registration In Pakistan, as outlined by the Securities and Exchange Commission of Pakistan (SECP). These restrictions ensure that company names are appropriate, do not mislead the public, and comply with legal and ethical standards. The guidelines for naming a company in Pakistan are primarily governed by the Companies Act, 2017, and the SECP’s regulations on name reservation.
1. General Naming Guidelines
Before registering a company in Pakistan, businesses must ensure that their proposed name meets the following criteria:
Uniqueness: The name must be distinct and not identical or too similar to an existing registered company or trademark.
Legality: The name should not contravene any laws or regulations in Pakistan.
Relevance: The name must align with the nature of the business. If the name suggests a particular industry, the company must operate in that sector.
2. Prohibited Names
Certain categories of names are strictly prohibited by the SECP to prevent misuse or confusion. These include:
a. Names Against Public Morality or National Interest
Names that are obscene, offensive, or against the culture and values of Pakistan are not allowed.
Names that could incite religious, racial, or ethnic conflict are also prohibited.
b. Names Resembling Government or International Organizations
Names that suggest an association with government institutions, such as "Federal," "National," "Republic," or "Ministry," require approval from the relevant authorities.
Names resembling international bodies like "United Nations," "World Bank," or "IMF" are generally not permitted unless written consent is obtained.
c. Names Suggesting Illegal or Unethical Activities
Words that imply engagement in criminal, unethical, or prohibited activities, such as "Terrorism," "Fraud," or "Drugs," are banned.
3. Restricted Words Requiring Approval
Some words can be used in a company name but require prior approval from relevant regulatory bodies. Examples include:
Banking Terms: Words like "Bank," "Financial," or "Investment" require clearance from the State Bank of Pakistan.
Educational Institutions: Words like "University," "Institute," or "Academy" need approval from the Higher Education Commission (HEC).
Medical Terms: Names containing "Hospital," "Clinic," or "Pharmaceutical" must comply with health regulations.
4. Use of Personal Names and Initials
For Company Registration in Lahore, they can use personal names in their titles, but these must not mislead the public. For example:
If a person’s name is used, it should not imply that the company is a government entity.
The use of initials alone is discouraged if it creates confusion with existing businesses.
5. Foreign Words and Language Restrictions
Company names in languages other than English or Urdu must be transliterated correctly.
If a name contains foreign words, SECP may require an explanation of its meaning and relevance to the business.
6. Trademark Considerations
If a proposed company name is similar to a registered trademark, the applicant must provide a No Objection Certificate (NOC) from the trademark owner. This prevents disputes over brand identity.
7. Name Reservation Process
Businesses must apply for name reservation through the SECP’s eServices portal.
The application is reviewed, and if the name is available and meets SECP’s guidelines, it is reserved for 60 days.
Conclusion
Naming restrictions for company registration in Pakistan are designed to maintain transparency, avoid conflicts, and ensure compliance with legal frameworks. Hamza & Hamza Law Associates should carefully check SECP’s guidelines before selecting a company name to avoid delays or rejections in the registration process.
Comments