Choosing The Company Name – What Should You Consider?

There are many decisions to be made when starting out on your own. Choosing your own company name is an especially important decision. Once a company name has been determined, it can no longer be easily changed once it has been entered in the commercial register. But even a company name that is not registered should no longer be changed because this leads to irritation for customers and suppliers. Therefore, one should not rush to choose the company name and plan carefully.

Legal requirements

In addition, there are some legal requirements that should be considered when choosing the company name. According to Section 17 (1) of the Commercial Code, the name of a merchant’s company is the name under which he conducts his business and gives his signature. Basically, there is freedom of naming. However, the legislature restricts this freedom in some areas because the basic principles of honesty, security and trust are to be protected in business life. When choosing the company name, you have to make sure that it does not violate the naming rights of other companies. This can be checked, for example, by the Chamber of Commerce and Industry (IHK). A business name generator free can be extremely helpful when choosing the company name. In the following, we provide a brief overview of the requirements that must be observed when choosing a company name:

The company name for freelancers and traders

Freelancers and traders are self-employed who are not entered in the commercial register.

Basically, the proper name must appear in the company name. The proper name can be supplemented by a name or a fantasy name.

For freelancers, only the surname needs to appear in the company name, for tradespeople (sole proprietorships) it must be the first and last name.

Examples:

“Fashion boutique Petra Müller” (tradesman / sole proprietor)

“Graphic design Schmitz” (freelancer)

“MS Wohnabiente Markus Schmidt” (with an imaginary name)

The company name for partnerships

In the case of partnerships, such as OHG or GbR, the same requirements apply as for freelancers and traders.

In the GbR, however, at least the first and last names of two shareholders must be listed. In the case of a general partnership, the surname of a partner is sufficient.

Examples:

“Elektroservice Peter Schmidt, Bernd Meyer and Co. Gbe (GbR)

“Meyer OHG” (OHG)

The company name for registered companies

Registered companies are, for example, an AG or a GmbH. In these companies, the legal form must always come after the proper name or imaginary name.

These companies are relatively free to choose their own names. However, the company name chosen must always be unique.

In the case of merchants who are registered in the commercial register, the company name must always be followed by the designation “eK” or “e.Kfr.”

Examples: “Maintenance Kön GmbH” “Computer-Service Müller eV Conclusion A company name should be distinctive and distinctive. It makes sense that the company name does not only contain a pure industry name for the job description. In addition, it is important that the business and liability relationships (if any) are evident from the addition of the legal form to the company name.

Conclusion

A company name should be distinctive and distinctive. It makes sense that the company name does not only contain a pure industry name for the job description. In addition, it is important that the business and liability relationships (if any) are evident from the addition of the legal form to the company name.

You also must make sure that the company name is not misleading. A company name that contains terms such as institute, finance or bio without the company demonstrably being oriented in this way is not permitted. If you are unsure whether a company name has been chosen correctly from a marketing perspective as well as from a legal point of view, you should consult appropriate experts.