Choosing a name for your company is one of the most exciting steps in setting up a business — it defines your brand, sets your tone, and helps customers identify you. But in Sri Lanka, naming a company is also a legal process governed by specific rules under the Companies Act No. 07 of 2007.
In this blog post, we’ll explore Sections 6 and 7 of the Act, which outline:
- What your company name must include depending on its type
- What names are prohibited or restricted
- How the Registrar of Companies determines if a name is too similar or identical
🧾 Section 6: What Must Be Included in a Company Name?
Your company’s name must clearly reflect its legal structure, which is why certain words or abbreviations must appear at the end of the name depending on the type of company you’re forming.
Let’s break it down:
1️⃣ Limited Company (not listed on a stock exchange)
🔹 Must end with either:
- “Limited”
- or “Ltd”
📌 Example:
- ✅
Nexus Engineering Limited - ✅
Nexus Engineering Ltd
This signals to the public that the company’s shareholders have limited liability — meaning they are only liable for the unpaid amount on their shares.
2️⃣ Private Limited Company
🔹 Must end with:
- “(Private) Limited”
- or “(Pvt) Ltd”
📌 Example:
- ✅
GreenBuild Contractors (Private) Limited - ✅
GreenBuild Contractors (Pvt) Ltd
This structure is typically used by small to medium-sized businesses where public investment is not allowed.
3️⃣ Listed Public Company
🔹 Must end with:
- “Public Limited Company”
- or “PLC”
📌 Example:
- ✅
Sunrise Beverages Public Limited Company - ✅
Sunrise Beverages PLC
These companies are listed on the Colombo Stock Exchange and can offer shares to the public.
🚫 Section 7: Restrictions on Company Names
While choosing a name, it’s not just about what you must include — it’s also about what you cannot include.
❌ 7(1): Names That Will Be Rejected
Your proposed company name will be rejected if it:
(a) Is identical to an existing Sri Lankan or registered overseas company name
Even a minor difference will not make it acceptable.
📌 Not allowed:
Lanka Furniture Pvt LtdifLanka Furniture Limitedalready exists.
(b) Contains “Chamber of Commerce”
Unless you have a special license under Section 34, which allows nonprofit status without using the word “Limited.”
(c) Is misleading, in the opinion of the Registrar
Names that create confusion or falsely imply a connection to a government body, authority, or function will be rejected.
📌 Example: A company called Central Bank Foods Pvt Ltd might be rejected because it implies a link to the Central Bank.
❌ 7(2): Words Requiring Ministerial Consent
Some names are restricted because they imply official status or a connection with the government or state bodies. These can only be used with written consent from the Minister and only if it serves the national interest.
These restricted words include:
| Restricted Word(s) | Why It’s Restricted |
|---|---|
| “President” or “Presidential” | Suggests affiliation with the President |
| “Municipal”, “Incorporated” | Suggests a legal/statutory authority |
| “Co-operative” or “Society” | Reserved for regulated entities |
| “National”, “State”, “Sri Lanka” | Suggests Government or national ownership |
📌 Example: You cannot register a company as Sri Lanka Health Services (Pvt) Ltd without written approval from the Minister, as it implies official status or national service.
🔍 7(3): What Makes Two Company Names “Identical”?
To prevent trickery or duplication, the Registrar applies standard rules to check whether two names are essentially the same — even if they look slightly different.
Words and symbols that are ignored when comparing names:
| Ignored Elements | Examples |
|---|---|
| The word “The” (if it’s the first word) | The Elite Holdings = Elite Holdings |
| Generic suffixes | Ltd, Pvt Ltd, PLC, Company Limited, etc. |
| Abbreviations | Ltd = Limited, Pvt = Private, etc. |
| Letter case | ABC Ventures = abc ventures |
| Punctuation and accents | A.B.C. = ABC |
Symbols like & vs. and | Brown & Co = Brown and Co |
📌 What This Means:
Even if your proposed name uses different spellings or formatting, it may still be considered identical and therefore rejected.
❌ Example of Names Considered Identical:
The Phoenix Group (Pvt) LtdPhoenix Group Private LimitedPhoenix Group PLCPHOENIX GROUP
All these are treated as the same name and cannot be registered more than once.
📌 Summary: What to Keep in Mind When Naming Your Company
| Company Type | Must End With |
|---|---|
| Limited Company | “Limited” or “Ltd” |
| Private Limited Company | “(Private) Limited” or “(Pvt) Ltd” |
| Listed Company | “Public Limited Company” or “PLC” |
| Prohibited Names | Reason |
|---|---|
| Identical to existing names | Avoid confusion |
| “Chamber of Commerce” | Requires special license |
| Misleading names | May imply false authority |
| Government-related terms | Require Ministerial approval |
✅ Tips for Choosing a Legal and Unique Company Name
- 💡 Search the company name database with the Registrar of Companies before submitting your application.
- 💡 Avoid using generic, official, or sensitive words.
- 💡 Stick to original, brandable, and descriptive names that reflect your business.
- 💡 Double-check for spelling, abbreviations, and conflicts with existing names.
📝 Final Thoughts
Your company’s name is the first impression it makes — both to your customers and to the law. Complying with the Companies Act ensures you won’t face delays or rejection during registration.
Taking the time to choose a name that is legally sound, available, and strategically smart will save you time, money, and legal trouble down the road.
