How to Handle objection on Company Name Reservation
This blog discusses strategy on How to Handle objection on Company Name Reservation with SECP when you register your company with SECP.
There are different types of companies that can be registered in Pakistan, these types ranges from Sole Proprietor to Listed Company. And the process of company formation with SECP starts with Company Name Reservation and in doing so sometimes the Promotors/ Directors / Owners get objection on company name.
Here is what you should do to Handle objection on Company Name Reservation
Ordinarily, on receipt of objection an ordinary investor/ company owner/ director is driven by three reactions.
- A reaction of fear
- A reaction of aversion
- A reaction of misunderstanding
In their approach, these reactions are negative, evasive and reactive in character and instead of resolution of the issue there is a likelihood of exploitation or an expedient conclusion which might prove self-defeating.
On the contrary, a prudent investor/ company owner/ director and a right-conscious citizen would react to such objection with following positive approaches: –
- He/she would examine as to whether the objection is as per rules and regulations laid down by SECP for List of Prohibited Words for Company Formation?
- Whether the objection on company name reservation has over-stepped the rights guaranteed by the statute?
- The investor/ company owner/ director or their authorized representative would separate factual points and legal points raised from reading/ interpretation of the objection on name reservation.
Sample Objection Letter on Name Reservation of new Company Registration with SECP
Dear Sir /Madam,
The proposed name is identical/close resemblance with the name of company in existence/reserved name. DIGI VENTURE LIMITED Hence, please amend the name suitably, keeping in view the principal line of business. Further, proper meaning/significance and relevance of all proposed names/ revised proposed name is required.
The observations may be removed at your ealiest but not later than 5 days from the issue of this letter, otherwise the name request will be deleted from system.