One of the most important aspects of forming a company is to select an appropriate name for the company. It is the name of the business which enables the company to distinguish itself from its competitors in the market place.

Customers may not remember the name of the company’s director or marketing executive, but may remember the name of the company. In the absence of a company name, it becomes difficult to establish a brand image in the market.

Moreover, company name is required for registration at various government and state authorities and for obtaining licenses required to carry out business activities.

Such licenses are issued in the name of the company in order to prevent misuse or duplication. It is important to note that certificate of incorporation is issued in the name of the company only.

Company name is required to be mentioned in the memorandum of association of the company. It is important for the business owner (s) to select a unique name for the company. Let us discuss some important points to be considered while selecting a company name.

Important Factors To Be Considered While Selecting A Company Name

Related To The Nature Of Business

In general, it is advisable to select a company name that indicates the nature of business proposed to be carried on by the company. A company engaged in providing technical consultancy can use a name like ABC technology.

In many cases, business owners prefer to start the company with a name having their initials. These types of names can also be used in order to inform the potential customers on the management of the company. Further, it is advisable to shortlist three to four names in order to avoid the possibility of rejection by the relevant registration authority.

Market Research

It is advisable to perform a thorough market research before finalizing the company name. It is quite possible that another firm may be operating with the name proposed for the company. Such a market research can be performed using online search engines like google.

Check Name Availability With Registration Authorities

It is important to perform a check on the availability of name with appropriate company registration authorities. Registration authorities of many countries/states require an application for name registration to be submitted by the business owners.

Application for registration is considered only after application for name registration has been approved by the relevant authority. Further, there can be a restriction on the use of words such as corporation, international, etc. without the prior approval of registration authorities.

Avoid Misleading Names

It is very important to avoid a name which can provide false and misleading information to the customers. Such names are generally used by fictitious and fraudulent companies with an intention to defraud the customers.

Company name is an important part of overall business management. It is frequently used in dealing with customers, vendors, government authorities, investors, etc. Therefore, it is important to spend adequate amount of time while taking a decision on the company name.