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Ontario|Business LawPartnerships 212 Choosing and searching a partnership name There are several guidelines to follow when choosing a name for your partnership. The name should be distinctive and describe your business in some way. The name must not be misleading to the public and it cannot include obscene words. The words corporation, incorporated, or limited cannot be used, because these words are reserved for corporations only.
You must be careful not to copy or come too close to copying another business name. If your business name is too similar to a name that is already being used, you may have to change your business name, and you may be sued. To make sure your business name is not already being used, you should conduct a name search.
- Conducting a name search
There are four main types of name searches. You can perform two of the searches yourself, or you can order a search from the Ministry of Consumer & Business Services, or you can pay a search company to do it.
The first search you should conduct is by looking in your telephone book and other similar directories. Second, you can conduct a free search yourself by using the computers at the Ministry of Consumer & Business Services Office. It is a good idea to start with these searches because if you find a company with the name you intend to use, you will know right away and be able to start thinking of a new name without having paid for a formal search. However, because the public records available at the Ministry are not completely up-to-date, if you do not find another business using your proposed business name, you should still conduct a further search at the Ministry or through a search company.
The third type of search is the Ministry's name search service. To use this service, you must fill out a form called "Services Requisition in Respect of Unincorporated Business". This form is available from the Companies Branch of the Ministry and from local land registry offices. You can conduct the name search in person or by mailing in the form. The fee for each name searched is approximately $12. This service is affordable and easy to use. This type of search is usually sufficient for a partnership that only plans to do business in Ontario.
The fourth type of search is the NUANS search. NUANS stands for New Upgraded Automated Name Search. A NUANS search is the most thorough type of search. The cost is usually about $65. The NUANS search will reveal all registered business and corporation names and trademarks that are similar to the business name you propose to use. This search is necessary if you want to conduct business in Provinces outside of Ontario. You can find a search company on the Legal Line Guide or website, or in the Yellow pages of your telephone book under Searchers of Records.
Although by law most partnerships must be registered, there are at least 3 other important reasons for registering a partnership name. First, by registering a name you are giving notice that the name is being used. This will help prevent others from using your business name. Second, by searching and registering a business name you can ensure that you are not using someone else's business name. This is important because if you do use someone's business name you could be forced to stop or even be sued. Third, by registering a business name you are helping to establish the goodwill or familiarity that goes with a particular business name. This is important in securing new business and can increase the value of your business if you decide to sell it.
For assistance in determining the form of business you should have, or for help with your partnership legal issues, you should consult a lawyer.
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