NAME OF THE COMPANY, COMPANY NAME, CORPORATE NAME
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The company name is the The legal name given to a company or business, which appears on official documents and in the relevant registers. It is the name that appears in the company's legal documents, such as contracts, deeds, invoices and other business documents. The business name usually consists of the name of the owner or founder of the company, followed by the main activity carried out by the company, and may include other elements, such as the geographical location or the type of company. For example, "Juan Pérez y Compañía Limitada" could be a company name.
The process for registering a company name varies depending on the country or region where the company is to be established.
The general steps followed in many countries are as follows
- Choice of name: a name must be chosen for the company, which is available and not registered by another company.
- Verification of name availability: it should be verified that the chosen name is available for registration. In some countries, this verification can be done through an online search in the database of the company registration office.
- Registering the name and obtaining the permit: an application for company registration must be submitted with the chosen name and await approval from the company registration office. In some countries, this can be done online or in person at the company registration office.
- Incorporation of the company: after the name has been approved, the company must be formally incorporated. This may involve drafting the company's articles of association, electing the management bodies and filing the necessary documentation with the competent authority.
- Registration in the commercial register: after the company has been incorporated, it must be registered in the relevant commercial register. This registration may vary from country to country or region to region.
It is important to note that the process of registering a company name can be complex and varies from country to country or region to region. Therefore, it is recommended to seek professional and legal advice to ensure that all appropriate steps are taken and all legal requirements are met.
Advantages and disadvantages for an entrepreneur of obtaining a company name
Obtaining a company name for a company has several advantages and disadvantages for an entrepreneur.
Some of them are:
ADVANTAGES:
- Limited liability: The company name allows entrepreneurs to have limited liability, which means that their personal assets are separate from the company's assets, and in case of debts, they are only liable with the company's assets.
- Credibility: Having a company name conveys an image of formality and solidity that can generate more confidence in customers, suppliers and partners.
- Access to finance: A company name can facilitate access to finance, as banks and other financial institutions often require a company name to grant loans and credit.
- Ease of doing business: Having a company name facilitates the process of doing business, such as signing contracts, buying and selling products, among others.
DISADVANTAGES:
- Formalities and costs: Obtaining a company name involves a number of formalities and costs, such as registration and legal fees.
- Fiscal responsibilities: Once the company name is obtained, the entrepreneur must comply with fiscal responsibilities, such as keeping proper accounts, filing returns and paying taxes.
- Loss of privacy: By having a company name, certain public data, such as the address of the company and the names of the partners, must be registered, which may affect the privacy of the partners.
- Exposure to legal risks: Having a company name exposes the company to certain legal risks, such as claims and lawsuits.
In a nutshell, obtaining a company name for a company has advantages and disadvantages, and it is important for the entrepreneur to carefully evaluate each of them before making a decision.
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TASK
CASE STUDY
Juan is an entrepreneur who wants to set up his own company selling organic products. To do so, he knows that he needs to register as a company in the country where he lives and establish a business name.
After researching and obtaining legal advice, John decides that the best option for him is to register a limited company. To do this, he must submit the necessary documentation, including the company's articles of association, details of the shareholders and details of the company name.
Once the company registration application is approved, Juan receives confirmation that his company has been legally incorporated and now has its own company name. With this, he can start his business operations and establish his trademark in the market.
Among the advantages of having a company name, Juan can mention:
- Limited liability: By having a company name, John can limit his personal liability in case of debts or financial problems of the company.
- Access to finance: having a social reason can make it easier to obtain financing from banks and other financial institutions.
- Establishing credibility: Having a corporate name can make the company appear more legitimate and trustworthy to customers and suppliers.
- Possibility of hiring employees: As a legally incorporated company, Juan can hire employees and establish employment contracts.
However, there are also some disadvantages to consider, such as:
- Initial and ongoing costs: the registration and maintenance of a company and its business name involves initial and ongoing costs, such as the payment of taxes and fees.
- More regulations and requirements: by having a company name, the company will be subject to more regulations and legal requirements than an unincorporated company.
- Loss of control: By having shareholders and being subject to regulations and legal requirements, John may feel that he has lost some control over his business and its decisions.
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