What is a “Named” Corporation?
Choosing a corporate name is a difficult task since it must conform to a number of legal requirements. Consequently, to increase the chances of your proposed name being accepted, it is recommended that you choose a name that both accurately describes your business and is as specific and distinct as possible. If your proposed corporate name uses common or popular names, the chances of it being accepted decrease. Furthermore, you may be prohibited from using a corporate name which is either identical or deceptively similar to one that is already used by another corporation or competitor in your jurisdiction. In some cases, you may decide to take over an existing sole proprietorship or partnership which has a name that is either identical or similar to your corporation’s proposed name.
Definition – A named corporation is one that is incorporated under a name, as opposed to a number. Name Search – In order to incorporate a named corporation, a name search must first be performed to check the availability of that name. In Quebec, a name search is valid for 60 days from the date of the report. For Ontario and federal incorporations, the NUANS name report is valid for 90 days from the date of the report request. Choosing a Name – If the name you have selected is confusingly similar to another company’s name or contains words that are not permitted, for example UN or obscene words, then it will be rejected. Required Elements – The name you choose must have a distinctive element and a legal element. It may also contain a descriptive element but this is not compulsory. Let us look at the name “Atrexelle Hardware Ltd”. “Atrexelle” is the distinctive element. The more distinctive it is, the better your chance of having the name approved. “Hardware” is the descriptive element,
