Tweet

Choosing the right name for your business

Guest post by: Rene Truter

Article Overview: It's amazing how few entrepreneurs put thought and research into naming their business. There are certain guidelines to follow to ensure you not only choose a good name, but that there won't be negative consequences for your choice. These are the rules for naming a company in South Africa.

Choosing the right name for your business

No matter what type of venture you're setting up, the key is to opt for a name that distinguishes you from other businesses. It's a lot harder to use the name that describes your products or services, as it may be very common and stops other traders from using the same or a similar name.

Finding the right one

There are various limitations to what is allowed when it comes to naming your business. Here is a basic guide of what you need to know.

• Companies and close corporations (CCs) must have a name and be allocated a registration number by the Registrar of Companies
• This name and its registration number must be displayed clearly in easily legible characters outside the registered office and every place in which the business is conducted
• The registration number and the name must be used in official publications, letters, invoices, receipts, delivery notes, and 'all bills of exchange, promissory notes, endorsements, cheques and orders for money or goods'
• If the name of the company is not used correctly on 'all bills of exchange, promissory notes, endorsements, cheques and orders for money or goods', the person who signs the document commits an offence and will be fined
• The person can held liable for the stated amount unless it is paid by the company. This means that the signatory would have to pay out of his pocket should the company fail to pay for any reason
• It is possible for a company or a CC to register a literal translation of its name into another official language and then use the name as well

A sole proprietor, partnership and business trust is only required to state its 'name, title or description' on all trade catalogues and circulars, business letters, orders for goods and statements of account.

Words you can't use

There are a number of statutes that prohibit the use of certain words in business names. For example:

• You may not use a name implying that you are an attorney, notary or conveyancer unless you are one
• A business name may not include the words 'government', 'state' or 'United Nations'
• The use of the word 'bank' is prohibited unless the person using either or both of those terms is registered as a deposit-taking institution or unless the business is incorporated under the Banks Act or some other law relating to a particular type of company
• The word 'Limited' (Ltd) or 'Incorporated' (Inc) may not be used as the last word of its name

Words that must appear in names

Certain words must appear in, or at the end of, the names of companies and CC.

• The name of a public company must end with 'Limited' or 'Beperk'
• The name of a private company must conclude with '(Proprietary) Limited' or '(Eiendoms) Beperk'
• The name of a company or CC being wound up must have the words 'In Liquidation', 'In Likwidasie', 'In Voluntary Liquidation' or 'In Vrywillige Likwidasie' appended to it
• The words 'Under Judicial Management' or 'Onder Geregtelike Bestuur' must appear immediately after the name of a company under judicial management
• The name of a close corporation must end with the abbreviation 'cc' or 'bk' (the abbreviation for 'beslote korporasie')

Name no-no's

Apart from what we've already mentioned, the name used by a sole proprietorship, partnership or business trust must not imply that the business enjoys government patronage.

It may not be one prohibited by the Registrar of Companies on the basis that it can deceive or mislead the public, that it causes annoyance or offence to any person or class of persons, or that it is suggestive of blasphemy or indecency.A name must not, in the opinion of the relevant registrar, be 'undesirable'. Some examples of what is considered undesirable are:

• Names identical to, or nearly resembling names already registered
• Names containing descriptive words conveying an impression of a company's business that differs materially from the company's main business
• A name consisting of fewer than three letters of the alphabet

To make sure your company's name doesn't already exist or break any rules, you can go to Companies and Intellectual Property Registration Office(CIPRO) to conduct searches on the Trade Marks Register, Companies and Close Corporations Registers and .CO.ZA Domain Name Register. None of these registers are currently cross-referenced, so you must check all of them.

Once you have the go-ahead to use the name, you can instruct CIPRO to register your business name, domain names, slogans, logos and product names as trade marks to obtain proper protection. The cost of registering your trade mark is much lower than having to go to court to prove that you used or thought of the name first.

Now who thought naming their business was as easy putting the words together and start painting the shop signs?

Source: The Companies and Intellectual Property Registration Office (South Africa)

Related Articles
  How To Choose Best Network Marketing Company!~ ONLINE SUCCESS SECRET
  CAN TWO SALESPEOPLE REALLY BE THAT DIFFERENT?
  Choosing Powerfully.
  Strategic Branding
  Top 5 Parameters to choose the right Freelance Copywriter
  What Counts Most
  What NOT to Choose as a Domain Name for Your Business
  Marketing Strategies - Banner Advertising and How to Choose Your Placements
  3 Tips to Choosing the Right Affiliate Marketing Products
  Best Internet Business Lesson 1 - Target Your Market
  Mistakes Clients Make When Choosing an Agency
  Selling to Hostile Franchise Buyers is Never a Good Idea
  Choosing the Mortgage Term That’s Right for You – Helpful Hints
  Displaying your canvas artwork
  Top Three Common Mistakes to Avoid when Choosing a Nurse Staffing Payroll Factoring Company
  Choosing and Claiming It!
  Maximizing Differentiation Opportunities
  Web Domain Name
  Declaring an Authentic Market Niche
  Choosing the right payroll vendor

Article Tags: name, naming a company, south africa



Related Forum Posts
Re: Bad SEO techniques? - [quote="jacksonp":1y3g8bot]that is quite true.We all should avoid these kind of techniques.I am here sharing few more points which we should take in mind..As an experienced person of SEO I want to share here some facts which should be avoided by us.I hope that these will help some of the newcomers a lot.. Choosing a title that has no relation to the content on the page Using extremely lengthy titles that are unhelpful to users Using a single title tag across all of your site’s pages or a large group of pages Stuffing unneeded keywords in your title tags Writing description meta tag that has no relation to the content on the page Multiple domains Multiple identical sites Cross Linking[/quote:1y3g8bot] re: Cross Linking, how do you define that? I thought linking to other pages on your website (that are related) was a good thing...maybe that's not what you meant.
Avoid Franchise Mistakes - I Came across these 7 tips for helping you avoid costly mistakes when buying a franchise & thought they would be helpful... It takes a lot of money to build a business, and you certainly don't want to waste any. Check this list of 7 costly mistakes to avoid. 1. Letting emotions rule. Falling in love with a franchise concept is a common mistake. Don't let your emotions guide your decisions. Use your head, do your due diligence and take the time to thoroughly investigate the franchisor's offering. 2. No professional team. Don't try to do your own financials, contract reviews, or negotiating. The cost of professional franchise attorneys, accountants, and advisors is money well spent. 3. Too little cash. Lack of capital is the number one reason franchisees fail. Item 7 in the UFOC will tell you how much money you'll need with a low and high range. Be smart-go with the high range. Then ask current franchisees if the numbers are high enough. 4. Penny wise and pound foolish. Choosing one franchise over another because the initial franchisee fees are lower is shortsighted. It assumes that all franchises are alike and nothing could be further from the truth. Choose the franchise with the proven concept and strongest track record. 5. Too much help. Payroll is the biggest part of overhead for most franchise businesses. New franchisees often hire too many people or pay too much in wages. A good franchisor will provide a good staffing plan. Stick to the plan. 6. No comparison. Never buy expensive equipment, supplies or inventory without shopping around first. Even if your franchisor offers group purchasing, do your own research, shop as many vendors as you can, consider aftermarket suppliers, and weigh different financing options (loans or leases). 7. Marketing blunders. As a new business owner, you're going to be targeted by every ad salesperson around. Ignore them. Follow your franchisor's marketing plan to the letter to avoid wasting thousands.
Re: Avoid Franchise Mistakes - [quote="BizLoanz4u":311o7qo8]I Came across these 7 tips for helping you avoid costly mistakes when buying a franchise & thought they would be helpful... It takes a lot of money to build a business, and you certainly don't want to waste any. Check this list of 7 costly mistakes to avoid. 1. Letting emotions rule. Falling in love with a franchise concept is a common mistake. Don't let your emotions guide your decisions. Use your head, do your due diligence and take the time to thoroughly investigate the franchisor's offering. 2. No professional team. Don't try to do your own financials, contract reviews, or negotiating. The cost of professional franchise attorneys, accountants, and advisors is money well spent. 3. Too little cash. Lack of capital is the number one reason franchisees fail. Item 7 in the UFOC will tell you how much money you'll need with a low and high range. Be smart-go with the high range. Then ask current franchisees if the numbers are high enough. 4. Penny wise and pound foolish. Choosing one franchise over another because the initial franchisee fees are lower is shortsighted. It assumes that all franchises are alike and nothing could be further from the truth. Choose the franchise with the proven concept and strongest track record. 5. Too much help. Payroll is the biggest part of overhead for most franchise businesses. New franchisees often hire too many people or pay too much in wages. A good franchisor will provide a good staffing plan. Stick to the plan. 6. No comparison. Never buy expensive equipment, supplies or inventory without shopping around first. Even if your franchisor offers group purchasing, do your own research, shop as many vendors as you can, consider aftermarket suppliers, and weigh different financing options (loans or leases). 7. Marketing blunders. As a new business owner, you're going to be targeted by every ad salesperson around. Ignore them. Follow your franchisor's marketing plan to the letter to avoid wasting thousands.[/quote:311o7qo8] Sometimes, or most often financial stability is the most core problem. That's why, in business capital, investments is truly important to save to in every risk that can be possibly avoided.
Creating Your Advisory Board - Part 1 Steps 1 & 2 - Thanks Kevin, I will go through each step in detail, starting with this post. 1) determine the objective of your advisory board. Why do you want an advisory board? to generate better ideas, open up new markets, launch new products? brainstorming, problem solving, fiduciary duties etc? Whatever you need from your board, be very clear in presenting what you want to accomplish by building this team. A good advisory board can be general in scope or targeted on specific markets. know how often you want to run meetings and set agendas appropriately. 2) Choosing the Right People once you are clear in what you want to accomplish it will be substantially easier to find the right people. Consider this a full time recruiting process to begin with. Start with your dream list of advisors. Perhaps you want to launch a new junk removal service, wouldnt it be great to have the CEO of 1-800 Got junk? start there. determine the areas of expertise that you need to recruit. Big names can be a bonus but not always. Find people who are going to be able to give you the time you need. People who will be honest, open and free with their ideas, resources and connections. You will want problem solvers with diverse skills, expertise and experience. If you need help approaching people, email me and I will give you some direct assistance. Until next issue, items 3 & 4 Jude
Re: Is A Business Plan A Waste Of Time? - I don't see a business plan a waste of time. Actually it's a great goal-setting tool for a business and it also helps evaluate a business' performance which allows the business owner to see where the business is going. Others say that it is only important when seeking funding from lenders or banks, but I believe it is more than that, that's why I have mine written and it's a work in progress since I first started in business.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

SEO and the Entrepreneur

Pay Per Click Advertising

Expanding Your Business By Franchising

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.