Company Name (What is it, Characteristics and Settings)

The business name It is a denomination that is collectively known in a company. This is a legal and official name, which appears in the document that allows the legal person in question to be built. The company name is used at a formal, legal and administrative level.

A brief example would be "Hermanos Gómez y Ripoldi S.R.L." which is the business name of the company that makes chocolates, from this name, the mercantile company is known. This would be its legal attribute, which appears in the deed or document where its creation is reflected. In the document you can identify both the legal person and all the members of the company and also provides security regarding its legality.

The concept of company name is best understood when we compare the name of a person with that of a company. The name is an attribute that gives us an identity and allows us to distinguish individuals from each other. A company name works the same way. The company name allows it to be legally differentiated from the rest.

Characteristics of the company name

In the next section we will learn about the characteristics of a company name, which will help us better understand what it is and what we should take into account:

• At the time of establishing the denomination, which will shape the company name, based on the Article 27 of the General Law of Commercial Companies, we are obliged to include the name of the partners. If there is a case in which there are too many partners, this should be included "and in company" or a similar term.
• When establishing a company, the main requirement is that the company name to be used is completely unique in the national territory. If at the time of incorporating the company there is another that has the same legal name, another alternative should be sought. In no case can there be two companies with the same company name. It should be taken into account that it is the name that will be used for administrative and legal purposes. An example of its use is when hiring an employee, the company name must appear in the contract.
• The initials of the classification of this type of company must be exposed in the legal name of the company. These are some examples:
• Anonymous society: In all cases the acronym S.A. They must be found at the end of the company's corporate name. Example: If you have a company and you want the legal name to be "La Chocolatería", if it is an S.A. its company name would be "La Chocolatería S.A."
• Limited society: The initials must appear at the end of the legal name of the company. It is a corporate name that is made up of a reference to the corporate purpose or a combination of the name of the partners.
• Joint-stock company: In this case, the abbreviation Spa must be placed at the end of the legal name of the company. Continuing with the previous example, the company must be called "La Chocolatería Spa".
• Collective Societies: In this case, when speaking of collective enterprises, whether of a civil or commercial type, this must contain the name of the partners that make it up followed by the abbreviation CIA. Following the previous example, the name of the company "La Chocolatería" would remain as the brand name and the company name would include the first or last name of the partners. Example: Pérez, Beltrán and CIA.

If you want to make some type of modification in the legal name, it is necessary to carry out a reform of the statutes so that the modification of the name is correctly reflected.

Difference between Company Name, Trademark and Trade Name

For some, the trade name should be similar to the business name or the brand name to the business name. The truth is that these terms are very different from each other. In some cases there is usually some confusion, but there are elements that help distinguish these three concepts. Here we explain how to differentiate them and avoid confusion:

• A mark: Branding is the fastest way to distinguish our services and products from the competition. The brand can be compared to the stage name of a star. For example: Brand: Johny Depp; real name: John Christopher Depp which is the corporate name.
• Trade name or branding: It is the name by which we want our clients to know us in the market. It is a name that helps us differentiate between the competition. Commonly, they are simpler names than the social one so that it is easier to be engraved in the client's mind.

In some cases, the brand and trade name may coincide. In other cases, the same company name may contain several names and trademarks to refer to or add to the market different products and services.

• Business name: It is the term that identifies the company at a legal level. This name helps us to be recognized as a legal entity. The denomination allows you to have legal rights and obligations.

These three terms cannot be confused in the company, since they are different at the legal level and allow us different things. When one is allowing us to place our products and services on the market, another is the legal name, the way in which we are identified as a company. It is up to you to have the same company name, trade name and brand or create completely different names.

Importance of the company name

When starting a new business, you must be familiar with the new terms that will be used in the process. By not knowing the terms, they add to the little experience making the learning process and adaptation more complicated. Although they are normal processes for the new entrepreneur, it is important to know so that the company name is used.

Although it is not very relevant knowledge, it is one that allows you to differentiate yourself from the rest. Knowing what the company name is, when and how it is used and how it differs from the rest, places a lot of value on work experience. It is important to know any of these terms since once you start a business, it will be much easier to specify a name for the company and brand.

Remember that the company name is what will differentiate you from other companies, so it is important to know its concept.