What is a company name?

Company name: definition

A company name is its official name. It is a term used to identify a company registered on the National Register of Companies (RNE). In France, the choice of a company name is left to the discretion of its founders.

The corporate name is the legal name under which a SAS, SARL or SCI is identified as a legal entity. In everyday language, the term dénomination sociale is used for commercial companies. The term corporate name is more commonly used for non-trading property companies.

Micro-businesses do not have a company name. A microenterprise is identified by itsowner's surname. Even if the entrepreneur can give a commercial name to his or her company, the public administration recognizes him or her solely by his or her first and last names.

The corporate name is mentioned in the company's articles of association and on all administrative documents: documents sent to the authorities, suppliers and customers. It is through this corporate name that the company is recognized by the latter.

The differences between company names and common names

A company has a trade name, used to identify itself and its activity. It is identified by the public under this name. The trade name can be registered to protect it from use by third-party companies. It is defined as an intangible element of the company, and can be registered by management with the RCS ( Registre du Commerce et des Sociétés).

Another common name is thesign. It is used to communicate the company's image to the public: customers and suppliers. It is installed on shopfronts and sometimes includes a logo. The logo is a graphic representation of the company's identity.

How do you choose a company name?

A company 's name can be freely defined by its founders, subject to certain conditions. The name chosen is often related to the business activity. For example, Décathlon, a company specializing in sports retail, chose its trade name in connection with the athletics discipline, which includes ten events. In other situations, founders choose to use their own name as the company name. A good example is Leroy-Merlin, the French DIY chain.

Before selecting an official company name, there are a number of factors to consider:

• Choosing an eloquent trade name
• Check that the name complies with the law
• Carry out a prior art search on the trade name

Choosing an eloquent trade name

Before selecting a company name, it's important to consider its marketing impact. It must be powerful and have certain characteristics:

• Stand out from the competition
• Be easy for customers to remember
• Describe the company's activities

The corporate name or denomination must be exportable if the company aims to expand abroad.

Checking compliance with the law

The company name must comply with the law. It may not be used in a context unrelated to the company's activity. For example, if a société civile immobilière wishes to choose a business name, it cannot use terms related to medicine, architecture, aeronautics, etc. The name used must be related to the business activity, so as not to mislead the company's customers. The name used must be related to the business activity, so as not to mislead the company's customers.

Any alphanumeric character can be used to create a company name. The abbreviation "@" is authorized. However, specific symbols are prohibited:

• Currency acronyms, such as € (Euro), CHF (Swiss Franc), £ (British Pound), $ (Dollar), ¥ (Japanese Yen) or ¥ /元 (Chinese Yuan).
• Punctuation marks: !, ?, ...
• The asterisk : *

Carry out a prior art search on the trade name

When selecting a company name, founders should carry out a prior art search to check that their selection does not correspond to a registered trademark that could expose them to legal action. Intellectual and industrial property is well protected by public and international bodies. To carry out a prior art search on a trade name, founders can use the databases of the Infogreffe website andINPI, the French National Institute for Industrial Property.

How to protect a company name?

Protecting a company's name is necessary to prevent it being used by another company. The latter could protect the company name to the detriment of the former. Managers can register their company name with the INPI. The corporate name is then protected for a period of 10 years. This protection is renewable indefinitely.

How do I change my company name?

A company's name can be changed at any time during its existence. The partners of a company may feel the need to change the official name for a variety of reasons:

• A new partner joins the company
• Merger between two companies
• Addition or change of commercial activities, etc.

Changing the name under which a company is recognized follows a strict, multi-step procedure. The partners must hold an Extraordinary General Meeting. The decision must be published in a Journal d'annonces légales (legal gazette) linked to the company's local commercial court. Finally, the application to change the company name must be filed with the Guichet unique.

The process involves payment of a registration fee, which validates transmission of the company name change information by the Guichet unique to the Registre national des entreprises (RNE). Managers can then use their new company name on their administrative documents, quotes and invoices, etc.

As a reminder, auto entrepreneurs cannot change their company name. Microentrepreneurs use their first and last names for all procedures, from creation to closure.