First of all, you must be clear about what a Company Name is. This is a very important issue when you are creating or modifying a commercial company since, without this corporate name, the company cannot enter the business world.
Next, we describe in detail what the company name is and the steps to follow to choose it, register it and be able to establish your company.
What is the Company Name of a business?
The company name is the name given to a corporation, which distinguishes it from others. This is the name that appears on any type of official documentation (for example, public documents).
This concept should not be confused with the brand or trade name of a company. The company (or corporate) name is what legally identifies a company before public administrations, customers, and suppliers.
The company name, in turn, is acquired voluntarily and gives the right to use the name of the selected company in any field and distinguishes it from other companies that carry out similar activities.
Finally, with regard to the brand, it is possible to distinguish the company’s products from the rest of the products of other competitors. There you can use words, numbers, digits, etc.
Is it mandatory to have a Company Name?
According to our legal framework, the company name is mandatory. The negative certification of the commercial name is a document issued by the corresponding commercial registry, which shows that there is no other company with the same name. It is essential for both creation and modification.
The mandatory nature of the company name offers legal certainty in commercial traffic. In this way, commercial companies become autonomous, authentic subjects (with legal personality) with full capacity to act in the corporate, commercial and legal framework.
In addition, this system regulates the principle of freedom of choice, both in the start-up and in the change of extinction of companies.
Basic rules to follow after knowing what the Company Name is
There are a number of basic rules that you need to keep in mind when creating a Company Name for a business.
Choice of the Company Name
Choosing a name for a company can be complex depending on the type of business, but once we know what a company name is, we must take into account the commercial activity, as well as the audience we are trying to attract. But the most important thing is that the name you choose is not being used already by any other organization.
Due to the great activity in Spain, which affects both the creation and the change of commercial companies, it is very likely that the first name you have chosen will not be granted. But don’t worry, since you can choose up to five different names in the same application in the order of your preference.
Each company name is registered with the name chosen, followed by the abbreviation that corresponds to the type of company. E.g. ENTRE TRÁMITES SL, for a LLC.
Registration, modification, and duration of the Company Name
Registration: To register the name of a commercial company, you must go to the corresponding commercial registry.
Modification: the Company Name can be changed if deemed appropriate. In fact, it is quite a common practice in legal traffic. To do this, you must request a new negative certification from the commercial registry.
Before registering, you must approve the change with the representatives of the company (general assembly, board of directors, or general assembly) and, in addition to registering this modification, having made the previous change in the public deed in the commercial registry.
Duration: The reservation of the Company Name takes six months from the date of negative approval. If the term has expired and it has not been registered in the commercial registry, the name is released and can be used by any other company.
If you want to set up your company quickly and leave all your bureaucratic procedures in the hands of experts, do not hesitate to contact us.
What Company Names you cannot use?
In the Spanish legal system, there is freedom of choice, provided that the general legal principles are respected. In addition, the name must not violate customs, law, or public order.
If you understood what the company name is, you will understand that there are a series of basic rules to choose the correct company name:
- It is not possible to choose a company name that is already being used by another company.
- Official names cannot be used, that is, only the names of the autonomous communities or provinces.
- You also may not register misleading or deceptive company names. In some cases, for example, the registration of the company name has been rejected because it contains names of people or even terms that are not related to the activity of the company as such.
- Internet domains cannot be included, such as: .com, .net, .es, etc.
Now that you know what a company name is, you will only have to follow the indicated steps, that is, to choose the name and register it in the Registry, and after that, you will be able to start your business activity.
In Entre Trámites we offer various services of management, advice and support in bureaucratic processes for state aid, including loans and grants for freelancers, SMEs and other companies.
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