Restriction on the Choice of Name
Although there is freedom of choice of name of the company, the registrar shall not register a company by a name which in his opinion is deemed undesirable.
The name shall be deemed undesirable in following circumstances.
- When name is too much like the name of an existing company. Every company must have its own name. This is meant to protect the company from other people taking advantage of its goodwill. It also protects the public from confusing the company with another company.
- Misleading name – A Company will not be allowed to be registered with a name which in the opinion of the registrar is misleading to the public e.g. a bakery operating under the name “Wananchi Auto Spares”
- A name cannot be ordinarily allowed if it suggests some connect with the government or royal patronage e.g. including such names as queen president etc.
- No name will be allowed if it includes the proper name of a person who is not a director of company unless for proper reasons.
- The name will not be registered if it includes such words as co-operative, building society etc. unless the circumstances justify.
- No name will ordinarily be allowed if it suggests some connection with National flag or National names or names prohibited under the National flag and emblems Act.
- If name suggests or propagates violence.