Last updated on January 12th, 2023 at 01:17 pm
The name of a corporation, limited liability company, or other business entity is one of your company’s most precious assets. The consequences of its effects are deeply ingrained in every aspect of your firm, including sales, reputation, and even the likelihood that your venture will be successful (or not). This is why, for business formation, picking a suitable business name is an essential step before continuing with your plans to register a company.
What exactly is a legal name?
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You must have a “legal name” for your business, this name will appear on the formation document of a corporation, Ltd., LLP, LP, or other statutory business entity. The corporation’s initial legal name is the one that was listed when the company was formed.
Limitations on Choosing a Legal Name
A firm, Ltd., LLP, LP, or other entity cannot just choose any name they feel is appropriate for their business. The statute that controls how companies are formed places limitations on the procedure. Typically, it centers on these three main issues:
- Essential words
- Forbidden words
- Availability of names
Essential Words
According to laws governing commercial entities, a business name must contain a particular term, phrase, or abbreviation identifying the type of entity it will be in order to be eligible for company formation.
Forbidden words
As the designated “legal name” of the business entity, only proper names are permitted. There are some terms and expressions that are forbidden, and there’s a good reason for it. One of the most important reasons is to avoid deceiving the public regarding the nature and scope of the company’s operations.
Availability of names
You must confirm that the name is available before your business name is approved. Sometimes the title you have in mind for your business won’t work because it’s been done before, is already in use, or is protected by the law.
Rules Determine by the business set up consultants for a Legal Name
You can electronically incorporate your firm using software or go to the Companies House physical office and complete it yourself. In exchange for a charge, third-party companies will provide you with simplified support.
A company name needs to be distinctive and easy to tell apart from other company names. There are, however, certain exceptions.
- The name of the applicant company is singular, whereas the name of the other, already-registered company is plural.
- While having identical names, they have different lowercase and/or uppercase letters.
- The domain name extensions or entity identifiers for the names vary.
- Punctuation, geographic terms, or symbols are different across the names.
Foreign Commercial Entities
Only when a foreign business entity has some sort of physical presence within the corporation, such as a place of business or branch, where it does business, is it required to register its business name. Except in cases where it is a subsidiary firm upon filing for company formation, the foreign company must register its name as the same name it had lawfully acquired in the nation of its origin.
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Conclusion
Picking a legitimate company name can be a difficult task that may take a lot of time, money, and effort. No matter what type of business structure you intend to establish, business set up consultants that are experts in the process of company formation would give careful consideration to naming selection.
