Dont use word firm for RoC registration: IRDAI to IMFs

Sectoral regulator IRDAI today asked Insurance Marketing Firms (IMFs) not to attach the word "firm" while applying for a registration with the Registrar of Companies (RoC) as it may indicate a separate kind of business constitution and their application could be rejected. According to Companies Incorporation Rules, 2014 by Ministry of Corporate Affairs under Companies Act (2013), a proposed company name with "Firm" is undesirable as it indicates separate type of business constitution or legal person, Insurance Regulatory and Development Authority of India (IRDAI) said in a clarificatory notification to IMFs. "... the proposed name shall not be inconsistent with the above rule and as such, the word Firm need not be there in name of the company while registering with RoC," it added. According to IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015, the authority has notified the regulatory framework of constitution, licensing aspects, governance structure, enforcement structure of IMFs. IRDAI gets applications from IMFs for issuance of no objection certificate (NOC) to be submitted to RoC for their registration.