Choosing the right name for your new business is an important decision. You want a name that will draw potential customers, help clients identify your company and build your business image. A name that is easy to remember and provides information about the products or services you offer is always a good choice.
If the name of your business is or will be different than your own name, it must be registered with the Companies and Personal Property Security Branch before you start using it.
Who
must register?
The Business Names Act applies to all types of businesses that operate
under a name other than the owner’s name.
The law requiring you to register your business name with the Companies and Personal Property Security Branch applies to:
- Sole proprietorships (one owner) carrying on business under a name other than the owner’s name
- Partnerships carrying on business under a name other than the names of the partners
- Corporations carrying on business under a name other than their corporate name.
In the case
of sole proprietorships and partnerships, any business name other than
the owner’s name must be registered. For example, if John Smith
conducts business as "John Smith", he won’t need to register
the name. But if he operates as "John Smith’s Shoes",
he will have to register the name.
As another example, if John Smith and Jane Brown operate a partnership
as "Smith and Brown", registration is necessary.
Corporations must register all names they use to carry on business if these
are not the same as the corporate names. For example, if "Jane Brown
Shoes Limited" also operates as "Brown´s Shoes", the
business name must be registered.
What
is the purpose of registration?
Registration places your business name on the public record maintained
by the Companies and Personal Property Security Branch of the Ministry
of Government Services. This allows consumers and business people to
find the owners or the principals behind a business name. This sort of
information is important to people trying to settle disputes. Anyone
may search business name information contained on the public record during
regular hours for a fee. Registering a business name does not give you
exclusive use of the name.
Choosing
a business name
Choose a distinctive name to stand out from your competitors. Make sure
the name is not misleading or confusing in its description of the goods
or services you will provide.
What
cannot be used in the name
When choosing your business name, remember that certain words or expressions
cannot be used.
- Words or expressions, in any language, that are obscene or objectionable in nature.
- Words that imply the business is a different type of organization. For example, you may not imply that a sole proprietorship is a partnership. You may not use numbers or words that imply the business name is a corporate number name.
- The words "college", "institute" or "university" cannot be used without the written consent of the Ministry of Education, if using the word implies the business is a post-secondary institution.
- You may not use the words "limited", "corporation" or "incorporated" or their respective abbreviations Ltd., Corp., and Inc.
- Words with restricted use under federal or Ontario laws.
- Words that imply the business is associated with the Crown or the Government of Canada, any province of Canada or any municipal government may not be used without the written consent of the appropriate authority.
- Names of individuals may not be used unless they have or had a material interest in the business activity and have given their written permission. If an individual is not living, and the name is used within 30 years of the date of death, the written consent of the estate must be obtained.
It is your
responsibility to make sure your business name does not contain any of
the above words or expressions unless proper consent has been obtained.
Business names must be registered in the Roman alphabet (English, French,
Spanish, Italian, Latin, etc.) and may contain numerals.
The following marks may also be included in the name, but may not be used
as the first character:
! " # $ % & ' ( ) * + , - . / : ; > = < ? [ ] \ ^ ` .
Business names composed of characters from other alphabets must be translated
and registered in a language using the Roman alphabet.
A business name in a language other than one using the Roman alphabet may
be used in advertising and signs, but the business name must also be displayed
in a language using the Roman alphabet.
For example, a business that registers its name in English may have letterhead
or signs in Chinese characters as long as the English name is also displayed
at the place of business.
Name
search
Before making a final decision on your business name and ordering forms
or stationery, you may want to know if someone else is already using
the name. You can do a simple
name search that will allow you to check up to 3 names for $15 plus
tax. A more accurate NUANS
search would be advisable if you want to be absolutely sure that
your name is not used by someone else. You
can order a NUANS here. The cost is $39.95 plus tax per each name
you search.
Liability
The registrant of a business name who feels he/she has suffered damages
because someone else used the same name or one that is deceptively
similar can take legal action. The Business Names Act provides for
payment of minimum compensation of $500 if damages are proven.
No
special powers
Registering a name does not give a business any special powers. If you
need licences, other registration or certification to run your business,
registering your name does not exempt you from obtaining the necessary
documents. It is up to you to learn what laws apply to your business.
A lawyer or business consultant can help you do this.
Order
Preliminary NUANS search-(3 names for $15*)
Order
NUANS Ontario or NUANS Canada search.($39.95*)
Register
your sole proprietorship.
Register
your partnership.
