Naming Your Business

Summary

Choosing the right name for your business is an important decision. You want a name that will draw potential customers, help clients identify your company and build your business image.  The following is a list of some of the points to consider when naming your business.

Table of Contents

1. Deciding What to Include in a Business Name
2. Testing Prospective Business Names
3. Searching Company Names
4. Searching Registered Business Names in Ontario
5. Searching Federally-Incorporated Business Names
6. Searching Registered Trade-marks
7. Choosing a Business Structure
8. Registering a Business Name
9. Incorporating Your Business
10. The Bottom Line

1.  Deciding What to Include in a Business Name
A good business name can be an effective advertising tool and communicate something about your business every time its name is mentioned.  It gives customers a sense of your business and helps to pinpoint the purpose of your business. 

When naming a business, a number of different factors should be taken into account to ensure the following:

• the name chosen is appropriate for the market you are competing in;
• it is short and memorable;
• it is distinctive enough to differentiate yourself from competitors;
• it does not infringe on an existing incorporated business name or trade-mark.

It is a good idea to consider the type of customers to whom you intend to market your product or service in choosing a business name.  If your customers will primarily be other businesses or industrial clients (business-to-business transactions), a strong, descriptive name might be chosen to provide potential customers with a clear understanding of what the company does (i.e. Jet Blast Inc., Noise Cancellation Technologies Inc., etc.).  If your customers will primarily be consumers, you might choose a name that brings to mind a memorable image (i.e. Titanic Salvage, Timbuktu Tours, Sahara Sandblasting, etc.).

2.  Testing Prospective Business Names
Choose a few names that fit the image you want to create. Test them out on friends, family, and potential customers. Try some names that are strong on imagery, others that are strong on description, and still others that fall somewhere in-between.  Pay particular attention to testing your naming ideas with people in your target market -- the core customer groups whose patronage you intend on capturing once you have started your business. Have these people write down on paper their impression of what the business would sell, how it would be run, etc.  Compare their thoughts with your own. 

3.  Searching Company Names
Before making a final decision on a business name, it is usually recommended to check whether the name you have in mind is already in use.  The most complete searches are done, for a fee, by private search house companies; however, you can conduct your own business name searches. It is important to make your search as complete as possible, including registered businesses, incorporations and trade-marks.

Note: There are a number of tools for searching business names available via the Internet.  If you do not have Internet access, you might want to visit a public library and use one of the workstations connected to the Internet.

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4.  Searching Registered Business Names in Ontario
You can search the records of the Companies and Personal Property Security Branch of the Ministry of Government Services (MGS) in person at the Toronto Office or via an Ontario Business Connects workstation (OBC) prior to registering a business name. The Companies and Personal Property Security Branch offers a number of business name and corporate search products with varying fees. The Companies and Personal Property Security Branch is located at 375 University Avenue (2nd floor).

Some of the OBC workstations are operated by licensed wholesalers under contract with MGS. The fees for using these workstations may vary depending upon the operator involved.

For further information:
please call (416) 314-8880 or 1-800-361-3223
OBC Workstation Listings
http://www.cbs.gov.on.ca/obc/english/4TPSFL.htm.

Note: You can check business names registered in other provinces through the business registration authority of the other provinces.

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5.  Searching Federally-Incorporated Business Names
You can check the names of all federally-incorporated businesses (including those doing business in Ontario) on Industry Canada's Web site at http://strategis.gc.ca/cgi-bin/sc_mrksv/corpdir/dataOnline/corpns_se?h_lang=e.

6.  Searching Registered Trade-marks
A trade-mark is a word, a symbol, a design -- or a combination of these (such as a graphic logo with a slogan) -- used to distinguish the wares or services of one person or organization from those of others in the marketplace. Trade-marks come to represent not only actual wares and services, but the reputation of the business. As such, they are considered valuable intellectual property. A registered trade-mark can be protected through legal proceedings from misuse and imitation.

Trade-marks can be searched through certain reference libraries and via the Internet on Industry Canada's Web site or you can hire a registered trade-mark agent to do a search (listed on the Internet on Industry Canada's Web site (see below).

For further information:
visit  these Web sites:
Canadian Trademarks Database
http://strategis.ic.gc.ca/cipo/trademarks/search/tmSearch.do
Trade-Mark Agents List
http://napoleon.ic.gc.ca/cipo/agentdb.nsf/Trade-marks+Table+Of+Contents+English?OpenForm

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7.  Choosing a Business Structure
The business structure you choose will determine the way in which you establish your business name.  Before deciding on a name you must first decide whether your business will be a, Sole proprietorship, Partnership, Corporation, or a Co-operative as this could affect what the name of your business will be.

For further information:
see the document  Forms of Business Organization

8.  Registering a Business Name
If you choose to register a business, the name you have chosen must be registered before you begin using it.  Upon registration with the Companies and Personal Property Security Branch you will receive a MBL (Master Business Licence), this licence is proof of your business name registration to present to a financial institution or with other business related transactions with the Government of Ontario.

For further information
please call (416) 314-8880 or 1-800-361-3223
visit the Web site
Business Name Registration
http://www.cbs.gov.on.ca/mcbs/english/5HSRSR.htm
Guide to Registering your Business Name in Ontario
http://www.cbs.gov.on.ca/mcbs/english/273a_3ea.htm

9.  Incorporating Your Business
Some entrepreneurs choose to incorporate (rather than register) because it provides for greater name protection under the law.  If you choose to incorporate your business, you will also have to choose its jurisdiction: federal or provincial.  There are both advantages and disadvantages to incorporation, before incorporating your business;  so you should consult a lawyer with corporate experience.

For further information
please call (416) 314-8880 or 1-800-361-3223
see these documents: 
Federal Business Incorporation - Canada Business Corporations Act (CBCA),
Ontario Business Incorporation.
visit the Web site:
Incorporating
http://www.cbs.gov.on.ca/mcbs/english/5HTTBT.htm

Note:  Trade-marking a business name also provides a measure of protection.  For more information on trade-marks, please see the document  Trade-marks .

10.  The Bottom Line
A name that is easy to remember and provides information about the products or services you offer is always a good choice.  Whether the name uses a straightforward description or imagery, ultimately it should answer the customer's question:  "What can I expect?"

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• Important Notices
• List of Fact Sheets

Adapted with permission from "Naming Your Business" : © Saskatchewan Economic and Co-operative Development, Regional Economic Development Services