In this informative blog post, we have stated everything you need to know regarding business name terminology and the rules associated when naming a business.
You’ve undoubtedly realized by now that entrepreneurship entails a crash course in a variety of connected subjects, ranging from marketing and sales to business law and management.
Even the process of deciding a Company name should adhere to Business Name Terminology, checking for its availability, and ensuring that the name is already trademarked entails the usage of legal jargon. Understanding these distinct phrases’ meanings can help you better comprehend the process. The collection of business name terms below can help you get started.
You can choose from a variety of Company name ideas in the Vakilsearch company name generator for your brand-new, unregistered business.
Understanding Business Name Terminology
Listed below are the business name terms which can help you get started:
- Business Name: The word “business name” refers to all of a company’s names, including its corporate name, legal name, product and services name, and fictitious business name. “Business name” must be regarded as a general phrase in this context because it doesn’t discriminate between particular sorts of business names. To put it simply, a business name is basically any name other than the proprietor under which an enterprise conducts business
- Corporate Name: A corporate name must be registered when a company establishes. An LLC (limited liability company) will register an LLC name, while an LP (limited partnership) will register an LP name. Before the name of these companies may be registered, it should be authorised by the state’s secretary. If a company, limited partnership, or LLC works under a registered name, the LLC, limited partnership, or the corporate name serves as the trade and legal names
- Fictitious Business Name: When the trade name differs from the legal name of the organisation (partnership, corporation, individual, or LLC) that possesses the business, a fictitious business name is employed. For instance, if Jonathan Lewitt named his sole proprietorship ‘Too Good Groceries’, the name would be considered fictitious since it doesn’t include the owner’s surname. A fictitious company name is sometimes known as a ‘doing business name’ (d/b/a). It’s necessary to register fictitious business names
- Legal Name: The formal name of the organization that possesses a business is its legal name. The legal name of a sole proprietorship is the owner’s full legal name. Suppose a general partnership gives itself a name in a written partnership agreement; in that case, the name becomes the legal name of a general partnership. Otherwise, the legal name of a general partnership is the proprietor’s last name. The legal name of a corporation, LLC, or a limited partnership is the name filled by the state’s secretary
- Trade Name: The name through which an enterprise is popularly known to the general public, which can or cannot be the same as the proprietor’s legal name (s). Trade names include Cold Stream Guard Services and Frank Farmer’s Fridges. Trade names can be found whenever a company advertises itself to the general public, like in the phone book or on business signs. Many procedures like opening a bank account or asking for a loan need trade as well as the legal name of the enterprise
- Trademark: Any term, symbol, design, or phrase used to sell a service or product is considered a trademark. A service mark is a mark used to sell a service, while the term ‘trademark’ is usually used to apply to both sorts of markings. Trademark owners have the authority under state and federal law to restrict others from utilising trademarks to sell services or products in particular circumstances.
Naming a Business: Rules
Every business name must adhere to a few common guidelines. Business names should not include:
- Be obnoxious
- Be identical to an already registered trade mark or name
- Suggest a relationship with the local authorities or government (unless you have authorisation)
When selecting a name, you must also consider certain additional business name requirements that depend on your company’s form.
Partnerships and sole traders can utilise their own names as their business names; however, limited businesses must pick something different. Moreover, whereas limited corporations must normally pick names that finish in ‘Ltd’ or ‘Limited’, partnerships and sole traders are prohibited from utilising names that contain ‘Ltd’, ‘Limited’, ‘Plc’ or ‘Public Limited Company’.
Registering a Business Name: How to Do It?
Some firms will be required to register their company name. You should do the following before registering a business name:
- Check that your suggested name fits all legal standards and does not violate company name laws.
- Ensure that your intended business name is not already in use by another organisation.
- Check whether your proposed business name infringes on any existing trademarks.
As soon as you have confirmed that your intended business name is available and appropriate, you’ll need to provide it when you file to incorporate your enterprise. If your business names. If the name gets approved, it’ll be registered under Companies House, preventing future firms from using your business name. It is only applicable to limited corporations; sole traders and partnerships are exempt from Incorporating Company Names.
Checking a Business Name: How to Do It?
Since you are not permitted to utilise a name that’s already taken by another enterprise, you must first determine which business names are accessible.
Keep in mind that business names might be refused even if they are not identical duplicates of another enterprise’s name, and your business name will be rejected if it is deemed to be similar or the same to an already existing name.
If the site difference between your business name and one that already exists is:
- Special characters, such as the ‘+’ (plus) symbol
- Punctuation
- A character or word
- A character or word that has the same sound or appearance as another name
Company Names V/s Business Names
The phrases ‘business name’ and ‘company name’ are sometimes interchangeable. While company and business names are fundamentally the same, corporations are only incorporated enterprises (that is, public limited companies and private limited companies. As a result, the word ‘business name’ can apply to the name of any type of firm, although ‘company name’ must legally only refer to the business name that’s been incorporated.
Trading Names V/s Business Names
In some cases, you may be able to trade under a name other than the one registered. The name you registered becomes your business name, and the name you generally use on a daily basis becomes your trade name. If you utilise a trading name, be sure to include your trading and official business name on your official website, documentation, and everywhere your firm runs. All you need to do is use the term ‘trading as’. You Can also make the Name Change Application for your Brand or Business.
Conclusion:-
When an entrepreneur, you may meet with several legal procedures as you set up your business. Some of these may be handled simply by a non-attorney, but there exist occasions when you genuinely need mental peace that a legal expert can bring. Contact a licensed commercial and business attorney in your state if you need assistance understanding the legal problems or trademark procedure: https://ipindia.gov.in/ when you establish your business.
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