Rule 18 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 18 is the longest rule on names. It bars names prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950, lists sixteen cases in which a name is not generally reserved, lets a foreign LLP or company reserve its existing name, and fixes how the Registrar deals with a reservation application. This article explains it as notified in 2009.
A name cannot be one prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950 (rule 18(1)). A name "shall not generally be reserved" in sixteen listed cases, such as offensive words, close phonetic resemblance, trade marks without consent, and professional words without council approval (rule 18(2)). A foreign LLP or company may reserve its existing name for three years, renewable (rule 18(3)). The Registrar is to reply ordinarily within seven days and a reserved name stays available for three months (rule 18(5), (6)). The Rules and the Act have been amended since 2009.
Read this first: the 2009 text and later amendments
This article reports what rule 18 provided as notified on 1 April 2009. The Rules have been amended several times since, including a web-based name reservation system, revised forms and fees, and changed time limits. The LLP Act has also changed on names, for example in the provisions on rectification of names; see Sections 17-18 of the LLP Act. Check the MCA portal or the current Rules before applying for a name. This article gives no fee amount and no portal step.
Rule 18 supports sections 15 and 16 of the Act; see Section 15: name of LLP and Section 16: reservation of name. For the present-day process, our LLP registration service covers name approval along with incorporation.
Rule 18(1): prohibited names
The name "shall not be one prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950". This is an outright bar, tied to another statute. The rule does not list what that Act prohibits, and this article does not either.
Rule 18(2): the sixteen cases where a name is not generally reserved
The phrase is "shall not generally be reserved". "Generally" suggests a rule with possible exceptions. Some clauses carry their own exception, such as consent of a trade mark owner or approval of a regulator. The sixteen cases, in the order of the rule, are:
| Clause | A name is not generally reserved if it... | Exception or example in the rule |
|---|---|---|
| (i) | Includes words offensive to any section of the people | None stated |
| (ii) | Is the exact Hindi or English translation of an existing LLP's name | None stated |
| (iii) | Has a close phonetic resemblance to the name of an existing LLP | Example in the rule: J.K. LLP and Jay Kay LLP |
| (iv) | Includes "Co-operative", "Sahakari" or the regional-language equivalent | None stated |
| (v) | Connotes participation or patronage of the Central or State Government | Unless circumstances justify; words such as National, Union, Central, Federal, Republic, President, Rashtrapati are given as possible examples |
| (vi) | Contains the words "British India" | None stated |
| (vii) | Implies association with an Embassy or Consulate or a foreign government, or suggests connection with local authorities such as Municipal, Panchayat, Zila Parishad or other body connected with the Union or State Government | None stated |
| (viii) | Is vague, as with a string of initials | Examples in the rule: D.I.M.O., I.V.N.R., S.S.R.P. |
| (ix) | Differs from an existing LLP's name only by a place name in brackets before "limited liability partnership" | Example: Indian Press (Delhi) LLP against Indian Press LLP |
| (x) | Includes a registered trade mark's name | Unless the trade mark owner's consent is produced |
| (xi) | Is identical with or too nearly resembles the name of a firm, LLP or company incorporated outside India and reserved with the Registrar under these rules | None stated |
| (xii) | Is identical with or too nearly resembles the name of an LLP or company in liquidation, or of one that is struck off, up to 5 years | The 5-year period applies to struck-off names |
| (xiii) | Includes words like "Bank", "Insurance", "Banking", "Venture capital" or "mutual fund", or similar | Needs approval of the regulatory authority |
| (xiv) | Is intended or likely to mislead as to the scope or scale of activities beyond its resources | None stated |
| (xv) | Includes words like French, British or German | Unless the partners satisfy that there is collaboration or connection with that country's foreigners |
| (xvi) | Includes "company secretary", "chartered accountant", "advocates" or similar professional words | Only after approval of the Council governing the profession, or an authority nominated by the Central Government |
Points worth noting
- Clause (xii) period. The five years apply, as the text reads, to names of LLPs or companies that are struck off. For names of LLPs or companies in liquidation, the clause states no period.
- Clause (v) is a judgement. The words listed are examples of what "may be deemed undesirable in certain context", not an absolute list.
- Clause (xi) links with sub-rule (3): a foreign entity that reserves its name gets protection from similar Indian names.
- Clauses (x), (xiii), (xv), (xvi) are conditional. Each can be cleared with a consent, approval or showing.
- Clause (ix) shows that a bracketed place name does not make a name distinct.
Example. Three architects form "Chartered Design Studio LLP". Under clause (xvi), words indicative of a profession, such as "chartered accountant", need approval of the governing Council. The words "Chartered Design" are not on the rule's list, but a name that suggests a regulated profession could attract the clause, so the partners would be wise to check the current rules rather than assume.
Rule 18(3): reservation by a foreign LLP or company
A foreign LLP or a foreign company may, on payment of the fee in the annexure, apply in Form 25 to the Registrar for reserving its existing name, the one by which it is registered in the country of its regulation or incorporation. The reservation is valid for three years and may be renewed on a fresh application with the fee. For the current filing position, see our post on the form for name reservation by a foreign LLP.
Rule 18(4) and (5): where and how to apply
An application to reserve the name for the proposed LLP, or for a change of name, goes to the Registrar having jurisdiction where the registered office of the LLP is, or is to be, situated (sub-rule (4)). Every such application is in the prescribed form, with the fee. The Registrar informs the applicant of reservation or non-reservation, "ordinarily within seven days of the receipt of application" (sub-rule (5)). The word "ordinarily" means the seven days is a norm and not a hard limit; the text does not say what happens if the Registrar takes longer.
Rule 18(6): how long a reserved name is held
Where the Registrar informs the applicant of reservation, the name "shall be available for reservation for a period of three months from the date of intimation by the Registrar". The three months run from the date of intimation, not from the date of application. The text does not say what follows if incorporation or the name change is not completed in time. It is silent.
Sub-rule summary
| Sub-rule | What it does |
|---|---|
| (1) | Bars names prohibited under the Emblems and Names Act, 1950 |
| (2) | Lists sixteen cases of no general reservation |
| (3) | Foreign LLP or company may reserve its own name for three years, renewable |
| (4) | Application goes to the Registrar of the proposed registered office |
| (5) | Prescribed form with fee; Registrar replies ordinarily within seven days |
| (6) | Reserved name available for three months from intimation |
Practical points
- Check every proposed name against the sixteen cases before applying. Several clauses are narrow, such as place names in brackets.
- If a trade mark is involved, get the owner's consent in writing first (clause (x)).
- If the name uses a profession word, plan for approval from the relevant Council.
- Remember that the Act and the Rules have changed since 2009; the present name approval system works differently.
Need help choosing and reserving an LLP name?
A rejected name delays everything that follows. Our LLP registration team can check a shortlist of names against the current requirements and handle the reservation along with incorporation.
Key takeaways
- A name prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950 cannot be used (rule 18(1)).
- Sixteen cases are listed in which a name is not generally reserved, from offensive words to professional titles (rule 18(2)).
- A foreign LLP or company can reserve its existing name for three years, renewable (rule 18(3)).
- The Registrar ordinarily replies within seven days; a reserved name is available for three months from intimation (rule 18(5), (6)).
- Names for a new LLP or a change of name go to the Registrar of the registered office (rule 18(4)).
- This is the 2009 position; the current system and the Act's name provisions must be checked.
Read next
- Rule 17: change of registered office
- Rules 19-20: direction to change a similar name and change of name
- LLP name reservation: the RUN-LLP process and restrictions
Disclaimer: Based on the Limited Liability Partnership Rules, 2009 as notified on 1 April 2009. The Rules have been amended several times since; current forms, fees and time limits must be checked before acting. This article is general information, not legal advice; check the official text before acting.