When starting a business in Sri Lanka, choosing a company name is one of your first and most important decisions. But not every name you like will be accepted. The Companies Act No. 07 of 2007 clearly outlines restrictions on company names to protect the public interest, avoid confusion, and prevent misleading representations.
📌 Why Name Restrictions Exist
The Registrar of Companies imposes restrictions to:
- Avoid misleading the public
- Prevent duplication or confusion with existing entities
- Safeguard government and public interest terms
- Maintain ethical standards and public order
❗ Words That Are Not Allowed in Company Names
According to Section 7 of the Companies Act, you cannot register a company name that:
1. Is identical to an existing company name
Example: If “GreenTech Solutions (Pvt) Ltd” already exists, you cannot register “Greentech Solutions (Pvt) Ltd” or “GreenTech Solution Pvt Ltd.”
2. Contains restricted government-related terms without approval
These include:
- “President” or “Presidential”
- “State”
- “National”
- “Sri Lanka”
➤ These words imply an association with the Government or President, and require special approval from the Minister in charge.
3. Suggests a connection with public institutions
These include:
- “Municipal”
- “Incorporated”
- “Chamber of Commerce”
- “Society” or “Co-operative”
➤ These may suggest affiliation with municipalities, cooperatives, or statutory bodies, which is not allowed unless such connection actually exists and is verified.
4. Is deemed misleading
The Registrar may reject names that:
- Misrepresent your business activities
- Imitate well-known brands
- Imply licenses or authorizations you don’t hold
⚠ Words Ignored When Checking for Name Similarity
When deciding if your proposed name is too similar to another, these words are disregarded:
- “the”
- “company,” “limited,” “private,” “PLC”
- Type, case, spaces, accents, or punctuation
- “and” or “&”
For example, “The Lanka Holdings Pvt Ltd” and “Lanka Holdings (Pvt) Ltd” would be considered identical.
✅ Tips for Choosing a Valid Name
- ✅ Make your name unique and descriptive of your business
- ✅ Avoid misleading terms or abbreviations
- ✅ Check name availability via the Registrar of Companies portal
- ✅ Consider future trademark registration if needed
💡 Final Thought
A company name is more than just branding—it’s a legal identity. By following Sri Lanka’s naming rules under the Companies Act, you ensure your business gets off to a compliant and professional start.
Before finalizing your name, always double-check with the Registrar of Companies or a legal advisor to avoid delays or rejections in your registration process.
