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Ontario|Business LawCorporations 218 Selecting a corporation name All corporations must have and use a corporate name. The corporate name may either be the corporate number which is issued by the Ministry of Consumer & Business Services upon incorporation, or a distinctive corporate name which has been properly searched and appears on the Articles of Incorporation. In addition to having a corporate name, it is possible for corporations to register and use business names.
- Corporate number as name
In some cases, companies do not want to use a descriptive name for the business and simply choose to use the corporation number followed by the words Incorporated, Corporation, Limited or one of their abbreviations.
- Descriptive corporate name
If the company does want to use a descriptive corporate name, then that proposed name must be searched. A formal NUANS search must be conducted and submitted to the Ministry. NUANS stands for New Upgraded Automated Name Search. A NUANS report will show all businesses and trademarks that have similar names to the one you propose to use. However, it is a good idea to first conduct searches using the telephone book, internet, and trade directories. If you do not find a name too similar to the one that you propose to use, then you can go forward with a NUANS search. The NUANS search is usually conducted by a private search company and costs about $65. You can obtain the name of a searcher of records from the Legal Line Guide or website, or from the Yellow pages of your telephone book.
You must be careful not to copy or come too close to copying another registered business name. If your corporate 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.
- Business names for corporations
A corporation may also want to use an abbreviated version of its legal corporate name, or a totally different name for advertising or marketing purposes. For example, a shorter name on a storefront sign may attract more public attention. To legally use a different name from the corporate name, it must be properly registered to the corporation. It is important to understand that a registered business name does not replace the legal corporate name, but is used in addition to the legal corporate name.
- Business name searches
If you are registering a business name, there are four main types of searches that can be conducted. First, you can begin by searching the telephone book and other similar directories. Second, you can conduct an informal search yourself at the Ministry by using their computers. Third, you can use the Ministry's name search service for a small fee. And fourth, you can have a NUANS search conducted by a private search company.
Although corporate names do not expire, business names are only valid for five years. If you plan to use a business name for longer than five years then you must renew the registration before it expires. The Ministry will not notify you of the expiration date. It is your responsibility to renew your business name.
- Names must be registered
Corporations are legally obligated to register all names that they use. If a corporation does not register one of the names being used, and a legal problem arises, the limited liability of the corporation may not be valid under the unregistered business name. This means that the owners and the employees of the corporation may be held personally responsible for corporate liabilities.
Incorporating a company and selecting corporate and business names for a corporation are complex legal issues. You should consult a lawyer for more information and assistance.
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