How to choose the corporate name of your company?

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1. What is the corporate name of a company?

The creation of a business is accompanied by fundamental choices, concerning the form and the corporate name. The company name is the official name, assigned to a company and listed on its Kbis. His choice is based on strategic thinking, in particular to avoid confusion with another company.

Legal entities must have a name, allowing them to identify in the eyes of third parties and the administration. In practice, we are talking about corporate reason for civil societies (SCI, SCM...) and the associations. On the other hand, we are talking about legal name for commercial companies such as SAS, SASU, SARL, EURL or SA for example, and by exception for SCP.

⚠️ Attention: the individual entrepreneur does not have a company name. The official name of the auto-enterprise simply corresponds to the name of the entrepreneur himself.

The company name is a mandatory information in the articles of association of society. It thus appears in all the company's administrative documents and in its correspondence with the mention of the legal form: Kbis extract, letters, estimates, invoices... When the name includes a large number of characters, it can be reduced to a simpler abbreviation.

⚠️ Be careful not to confuse it with the trade name and the company sign.

• The company name is the official name of the company, the way in which its legal personality is known.
• The trade name refers to the public name of the company. It identifies the goodwill and/or the activity of the company. It is therefore entirely possible to opt for a commercial name that is different from social identification. The commercial name is intended to make the company known to consumers and partners.
• For its part, the brand has a commercial purpose, allowing the public to identify the company. It is both the operating room and the physical support fixed to the facade of the room.

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2. Freedom of choice of company name

A name consistent with your business

While the freedom of the company prevails in choosing its corporate name, we must not lose sight of the fact that it must above all make sense for your business. It thus generally echoes the activity carried out, highlighting a Occupation, a product Or a service sold, or to Names of partners present in society. It can also be a more creative choice, especially if you plan to use the same name for commercial purposes.

⚠️ Attention: The company name can include all alphanumeric characters, the atobase sign @, or other special characters. On the other hand, the use of the euro currency symbol € is not allowed.

For the simplicity of exchanges with the administration and easy recognition by your customers vis-à-vis competitors, it is therefore better to choose a name that is easy to remember and write, while being Original to make an impression, and, in any case, in connection with your activity. It still has to be in compliance with the law and available! To choose an administrative name that suits you, you can use your name, place of practice, a trade or a word related to your activity. For example, you can settle under SCM Bertier Avocats Poitiers.

An appellation in accordance with the law

To be in compliance with the law, the company's corporate name must not:

• To be contrary to public order and morality ;
• Faire reference to regulated activities for which the company does not have specific authorization (chartered accountant, doctor, architect...).

A company name available

In practice, the name of the company should not allow confusion with a competitor. It is therefore essential to carry out a preliminary search with the Trade and Companies Register to verify that the proposed name is not already used by another company, especially if it carries out a similar activity. Otherwise, you would risk an action in unfair competition, with a ban on using the company name and payment of damages. Registration at S.C.R therefore makes it possible to ensure the protection of the corporate name of your company.

We also recommend a prior art search at the INPI to be certain that the name is not used by a protected trademark. In the event that you use your company name as a trade name, we also recommend registering your trademark to provide an additional level of protection. A procedure that effectively protects your name on the market for 10 years (infringement action).

Finally, last point to check: the domain name availability for the company that wants to create a website. The choice of your company name must take into account the available URLs in order to allow consistency between your name and the address of your website. An approach that ensures legal security and better readability by third parties of your implementation strategy.

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3. How do you change the corporate name of your business?

You are making a strategic commercial shift or are you welcoming new partners into your company and Does your name no longer suit you? Don't panic! It is always possible to change the name of your business. You should not be a prisoner of your corporate name and prevent yourself from choosing a new identity or a new commercial positioning.

However, it must be taken into account that the change of corporate name is quite cumbersome, as it involves several legal procedures:

• Change the statutes to extraordinary general meeting ;
• Write the AG minutes ;
• Fill out the declaration of change of legal person,
• Publish a legal announcement regarding the change made;
• File a request forAmending registration in the Registry the Commercial Court;
• Update statuses to include the new corporate name of the company.

This change becomes enforceable against third parties as soon as it is registered in BODACC.

⚠️ Also note that changing your company name is an important decision that leads to application fees : intervention of a company law expert, publication and registry costs. It can also alter communication with third parties for a period of time. This approach must be carefully considered and well anticipated in your speech to customers.

Discover The advantages of dematerializing AGs.

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4. Reminder of the points of vigilance when choosing the name of your company

• Do not confuse the company name, the official name of a civil society, and its commercial name, which may be different.
• The name must be available and not be confusing with existing business names.
• Remember to check the availability of the domain name corresponding to your business name if you plan to create a website for your business.
• File your company name with the INPI to protect it and avoid any confusion with the competition.
• Respect the process of modifying the articles of association in the event of a change of company name.

Are you considering creating a company? Find all the essential information on Axiocap, a subsidiary of Infograft!