How to choose a business name for your corporation

How to choose a business name for your corporation

Choosing a corporate name is probably the most difficult task of incorporating a business. Every corporation must have an acceptable name at the time of their incorporation because the corporation will then exercise its rights and carry out its obligations under this name. All corporate names must conform to various statutory requirements.

The most common concern when trying to select a corporate name is that corporate name cannot be identical to or lead to confusion with another corporation or business already using an identical or similar name.

A corporate name is generally made up of 3 parts:

  1. Distinctive element;
  2. Descriptive element; and
  3. a legal ending.

The distinctive element of the name is the part that makes distinctive from other corporations, i.e. what makes them different. The more different or fanciful the name the better.

The descriptive element describes the main activities or type of business of the corporations.

The legal ending indicates that it is in fact a legal corporation and not just a business registration or partnership. You can choose from the following words: Incorporated, Limited and Corporation, or their respective abbreviations: Inc., Ltd. and Corp.

All corporations MUST have a distinctive element and a legal ending to their names. Some corporations choose not to have a descriptive element.

For example, in the name "Tiger Computers Inc." the word "Tiger" is the distinctive element; the word "Computers" is the descriptive element; and the "Inc." is the legal ending.

Below are other examples of corporations' names:

Type of Name

Distinctive 
Element

Descriptive 
Element

Legal 
Ending

Coined Word

Zazoul
Golem
Entarpa

Video Rentals
Management
Software 

Inc.
Ltd.
Corp.

Family Word

Wilson
J. Fedders
Lee

Holdings
Restaurant
Cleaners

Incorporated
Limited
Corporation

Descriptive Name

Smart
Big and Tall
Budget

Systems
Clothing
Catering

Inc.
Corp.
Ltd. 

Geographic Word

Toronto
Ontario
Montreal

Perfumes
Web Marketing
Computer Depot

Incorporated
Limited
Corporation

General Name

General
AAA
Neighbourhood

Trucking
Rentals
Enterprises

Inc.
Corp.
Ltd.

Distinctive Only

Ashkar
BlueCell
iFast

-
-
-

Incorporated
Limited
Corporation

To increase the chances of your proposed name being accepted or not be in conflict with another business or corporate name or trademark, 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 are decreased dramatically. 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.

What am I not allowed to include in a corporation name?

Your corporate name cannot be identical to or lead to confusion with another corporation or business already using an identical or similar name. The criteria typically used to determine if there is confusion include:

  • distinctive character of each name and each of their elements
  • visual and phonetic similarity
  • similarity in the ideas they evoke
  • manner in which the names are used
  • notoriety of each name
  • actual or potential competition between the corporations
  • nature and quantity of goods and services offered
  • territory and number of persons served by both corporations

Also, there are certain words that are typically prohibited for business corporations. These include:

  • Obscene word or wording
  • Co-op, co-operative or any variation
  • RCMP
  • Parliament Hill
  • United Nations
  • Red Cross
  • Housing
  • Association
  • Any wording that might be confusing with a government institution
  • Engineering, Engineers
  • College, University, Institute
You can conduct real-time preliminary searches from our site before you make a final determination on your business name.  Check it out here: https://app.corpcentre.ca/new-order/nuans-pre-search 


    • Related Articles

    • A name for your corporation

      An important decision to make when starting your business is choosing your business name. This name will become the business’ identity around which you will market your business products or services. Many people already have a business name in mind ...

    • Where should I incorporate my business?

      If you have decided on a corporation, you need to choose between a provincial or federal corporation. There are advantages and disadvantages to both and there is no one best solution. Deciding which jurisdiction to choose may depend on the answers ...

    • Can I use my current business name for my new corporation?

      Yes. If you have an existing business registration, as a sole proprietorship or partnership for example, you can typically continue using your existing business name that is either identical or similar to your corporation's proposed name. Under these ...

    • Should I incorporate my business?

      There are several features that are unique to a corporation which make it the favoured legal structure for many businesses. These include: Limited Liability. A primary advantage to incorporating a business is the limited liability conferred upon its ...

    • How to pick a legal structure or type for your business

      When starting a business or an organization, the first decision you need to make is to choose its legal structure. This legal structure will have an impact on: the personal liability you will have from the debts of the business your ability to raise ...