NO CONFUSION TO THECONSUMER The basic requirement before selecting a business name is that it should not cause confusion to the public including likelihood of association with an earlier trade mark by virtue of its identity with the earlier trade mark and similarity of goods or services caused by the earlier trade mark or by virtue of its similarity to an earlier trade mark and identity or similarity of the goods or services caused by the earlier trade mark.
TYPE OF BUSINESS If the two businesses operate in the same industry, then there is likelihood of trade mark issues. The existing company “Lakshmi Garments Pvt. Ltd” operates in garment industry and the company you want to start is “Shri Lakshmi Textile Pvt. Ltd” which works in a similar industry. So there is likelihood of trademark issues.
GEOGRAPHICAL AREA It also depends on the geographical area in which the companies operate. If both the companies have their market in the same geographical area, then there can be trademark issues.
Examples The following companies co-exist: London and Provincial Law Assurance Society with London and Provincial Joint Stock Life Assurance Company London Assurance Corporation with London and Westminster Assurance Corporation Colonial Life Assurance Co. with Home and Colonila Assurance Co. Merchant Banking Company of London with Merchants’ Joint Stock Bank But the North Cheshire and Manchester Brewery Co. wasn’t allowed to operate because there was a company named Manchester Brewery Co.
ANSWER There is very less probability that you can start a company named “Shri Lakshmi Textiles Pvt. Ltd” when there is already a company named “Lakshmi Garments Pvt. Ltd”.
Few more examples.. The following names cannot be allowed because of existing companies with similar names. Hindustan Motor and General Finance Company because there exists a company named Hindustan Motor Ltd.. The National Steel Mfg. Co. Private Limited cannot be allowed because there is an existing company named National Steel Works. Trade Corporation of India Limited cannot be allowed because there is an existing company named State Trading Corporation of India Limited. Viswakaram Engineering Works Private Limited cannot be allowed because there is an existing company named Viswakaram Engineering (India) Private Limited.