Choosing The Right Name For Your Company
When starting your business, one of the initial thoughts is regarding the selection of a company name. You may have many creative ideas about naming your business, but you need to consider the nature of the business, legality, and compliance simultaneously. A company’s name represents its goals and business identity and, therefore, should be well-thought-out. Our guidelines below will help you decide on the right name for your business, keeping all aspects in view.
Business Name Versus Company Name, What’s the Difference?
Most people consider the business and company names to be interchangeable and mean the same. However, there are fundamental differences between business and company names.
- Company Name – It is the legal name of your company. It is the name your company is registered with at the time of incorporation and creates a separate legal entity. A company has a single registered company name which, once registered with the Companies Registration Office (CRO), becomes protected and cannot be used by other entities looking to register in the
- Business Name – Also called the ‘trading name’, is one under which your business is registered. It does not create a separate legal entity. It is needed where a sole trader, partnership or company carries on a business that is not the same as their own or legally registered name. There can be multiple business names, and the CRO does not protect these. This means that the same name can be used by other businesses too. You can, however, get the business name registered if you wish to.
Getting Your Company’s Name Right the First Time
Contrary to the famous phrase, ‘What’s in a name?’, when choosing your company’s name, a lot of considerations come into action since it is usually associated with your company for its lifetime and is a reflection of your corporate vision.
Choosing a company name is an exciting milestone in your business journey. However, specific rules apply to selecting a company name and chances of rejection exist if these rules are not considered when thinking of options for the appropriate name.
Our 5 Useful Guidelines for Choosing the Right Company Name
1) Check the viability of the proposed name with the CRO
Before going ahead with your brainstorming process, it is important to understand that there is a chance of the rejection of your proposed name at the time of your company’s registration by the CRO. If the CRO considers a term offensive, like another company’s name or indicates state sponsorship, then the name may be refused, and you will have to go through the whole process again. It is also essential to check the business name register and trademark register to avoid any future infringement action taken by the related person.
It is helpful to check the register of companies on the Company Search Facility for any proposed names. Also, the CRO website lists guidelines to assess if a particular name fulfils the criteria of acceptability.
2) Focus on your target market and brand identity
It is important that your company name resonates with your business goals and the brand identity you are planning to build up. Keeping your customers/target market in mind is also a key factor. It is a good idea to work backwards, deciding on your target audience, company’s mission and objectives and then start brainstorming the options for names.
3) Keep it short, simple and unique
In today’s world of swiftness and uniqueness, it is essential to forget the long descriptive names. A simple and unique name that is easy to remember and pronounce is more likely to leave an impact on your customers and therefore contributes towards the business’s success in the long run. It also helps keep a successful web presence and lets the customers find you easily in search results. It’s best to use industry-specific distinguishing words to make your company name stand out. It will also help to avoid rejection from the CRO based on the use of commonly used terms in company names, for instance, solutions, services, enterprises, universal, systems or other generic words.
4) Avoid using terms that restrict the potential scope
It is essential to avoid adding names of any locations to your company name. This will cause issues where you want to expand your business beyond that location. For instance, naming your company Dublin Techno Solutions Limited will cause limitations if you wish to grow your business beyond Dublin later.
5) Think out of the dictionary
Creating a new word as a name for your company gives you an outright edge, for instance, YouTube or LinkedIn. It is unlikely to match an already registered company name, which is an essential criterion for the CRO. It also helps to highlight your differentiation. It is also helpful to seek ideas from others that might help you discover new options for the suggested names.
Registering a Company Name or A Business Name
Your company name will be registered at the time of your company’s incorporation. When filing the application for company incorporation (Form A1), the company’s name is one of the first fields to fill in.
For registering a business name, Form RBN1 needs to be submitted to the CRO. This process is different from setting up a company in Ireland.
Some FAQs About Company Name
1) Can I reserve a company name?
If you have chosen a company name and there is still some time left to fulfil other requirements, you can reserve a company name using the CORE portal. The name can be reserved for a period of no more than 28 days. A new or existing company looking to change its name can use this facility.
2) What do I do if my proposed company name gets rejected?
Suppose CRO rejects your company name, for instance, because it is too identical to an already registered name. In that case, you will have to update the company incorporation documents reflecting the new name.
This can all be time-consuming and results in unwanted stress. All our company formation packages include a free company name check feature, which helps our clients take timely actions where needed and saves them from rejection and incurring extra costs.
3) Is a company name, once accepted by the CRO, subject to change later on?
Suppose a name accepted for registration by the CRO, by inadvertence or otherwise, is found to be too similar to another company’s name. In that case, such a company can object in writing within six months of the registration of your company. The Registrar can then direct for a change of name for your company within six weeks, and you can run into difficulty.
Looking to Incorporate Your Company and Register the Company Name?
We have helped many clients successfully register with the CRO and start their business journey. Call our team today to get the professional assistance that you require.