Area of Law: Business Law
Answer # 212
Choosing and searching a partnership nameRegion: Ontario Answer # 212
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 (or their abbreviations) 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 three main types of name searches. You can perform one of the searches yourself, or you can order a search from the Ministry of Government and Consumer Services, or you can pay a search company to do it.
The first search you should conduct is a search of various directories such as online telephone directories and business listings.
Second, you can conduct a search by using the Ministry of Government and Consumer Services Enhanced Business Name Search to see if the business name has been registered with the Ontario Government. You can conduct the name search online or by mailing in the form. There is a small fee for each name searched. 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.
Because the public records available at the Ministry may not be completely up-to-date, if you do not find another business using your proposed business name, you should still conduct a further search through a search company.
The third 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. There is a small fee for this service. 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 Ontario, as the search reveals all existing names that have been registered in Canada.
Why register a partnership name
Although by law most partnerships must be registered, there are at least three other important reasons for registering a partnership name:
- By registering a name you are giving notice that the name is being used. This will help prevent others from using your business name.
- 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.
- 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.
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