Updated: March 4, 2024
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You start working on your business name as soon as you decide to pursue your dream of starting a business. There are those who have the names years before they start working on the business idea. It is a way of keeping your dream alive. Imagine nursing the name, the idea, dreaming of how the logo would look like only for the government to tell you that you will have to use another name. It is heartbreaking.
Your registrar will reject your business name for various reasons. Some governments are kind enough to give you a reason. Other governments will send you a generic rejection letter with little information on why. You will probably make the same mistake if you don’t know what was wrong with the previous name. We can’t cover all the governments in all countries but we have found some of the common reasons for rejection. Let us have a look at them.
It is not unique
If you want to have an easy time registering your business, choose a unique name. We cannot emphasize this enough. The business name registrar will often compare your name to others and decide if it is unique enough. The rejection is quicker especially if another business is in the same line of business as you. Mostly, this is to protect the public from confusion. It also protects you as the business owner or shareholder. Imagine going to court because of something some other guy with your name did. You may explain your case but it could do damage to your reputation.
The registrar may also have a complaints policy. The registrar will accept complaints about your name for some time after approving you. Any business owner will have the chance to complain if they get to learn that your name is like theirs. All they have to prove is that a confusion is arising due to your name. The proof could be something like your customers emailing the other business owner. The registrar may then require you to change your name. Some countries will have fines if you don’t change your name within the specified time. It is better to get a unique name from the get go.
Trademark Violation
A trademark can be registered or unregistered. Registered trademarks are usually in a database. Some countries allow you to do a trademark search by yourself. In other countries, it is the registrar who will do the search. If your country allows you to access the trademarks database, you should confirm that the name you wish to register is not a trademark. In the US, the trademarks database is accessible here.
There are countries where registrars may do a trademark search. They will stop registration if they find that the name you want is a registered trademark. It would be their responsibility to stop you from infringing on another person's trademark rights. They would be protecting you. It is far better to get a rejection in this case than to be sued later on.
Generic Names
Generic names are names that are too broad. We use generic names for a category of objects. Usually generic names are already part of other business names or will be in the future. Having a distinguishing term that accompanies a generic term is okay. An example of a generic name is ‘food’. Most registrars will refuse such a name. You will not be approved for ‘Food Inc.’ or ‘Food Limited’. On the other hand, a business name like ‘Martha Food Inc’ may be acceptable.
Location Names
It is advisable to have a distinguishing word should you go with the name of a location in your proposed name. Do this if the location you are using is part of the country or territory you are registering under. You are going to get a rejection letter if you propose calling your business ‘London LLC’ in the UK. It can’t be the only word. ‘Martha’s London Foods LLC’ may be more acceptable.
Name doesn’t match business activity
A lot of countries will ask what your proposed line of business is when you are registering. The registrar matches the line of business you have stated against the name. Should there be a disparity, the registrar will reject your name. If you are in the food and beverages industry, using a name such as ‘Martha’s Trucking Services’ will lead to a rejection. These policies protect the public from misinformation and you from making a mistake.
False association to a profession
The business name you are applying for may insinuate that you are professionals. Some laws state that one of the founders needs to be a professional. You will need to file the paperwork to prove you are a professional. The registrar will stop the whole business application process if you can’t provide the relevant paperwork. The professional services where you need a certification include Medical, Veterinary, Legal, Engineers, Architects, Accountants, Chiropractors, Dentists and many others. The list is vast and varies by country. Rejection in these cases is not because of the name, it is because of the nature of the business. Your name tipped off the authorities.
Government Impersonation
Impersonating the government is some dangerous water to tread. I cannot think of a country where this would be okay. It is illegal in most countries to impersonate the government, its agencies, institutions or officials. You will get an automatic rejection should you apply for a business name that will give the perception that your business belongs to the government. Common government terms that may get your business name rejected include: national, federal, government, and county. Countries under a monarchy may reject business names that imply a connection to the crown.
Impersonating a Nonprofit
A nonprofit is an organization that exists to provide a service for public benefit. It uses whatever monetary gain it generates to better provide the public benefit, not to increase the wealth of shareholders. A good example is a university. Check this out for more differences.
You now know the main difference between a nonprofit and a for-profit organization. Registering your business as a for-profit organization but with a name that implies it is a nonprofit will result in a rejection. Words that are commonly used by nonprofits are ‘Association’ or ‘Society’. Some localities may allow the word ‘Associated’ instead.
Using an obscene or offending word
Over 60% of the world population is religious. Religious countries will tend to have values that they believe in. Secular countries, even if not guided by religious teachings, will have a set of principles that guide its people. The opposite is a set of practices that these nations shun and are taboo. Most countries will object to obscenity and vulgarity. Registrars will reject a business name that condones or promotes such a word.
People may take offense where none is intended. A name may be normal to you but the public is likely to take offense. It is the registrar of the business who will, at their discretion, determine what consists of an offending word. Foreigners looking to set up a business in another country will not find it obvious. Native speakers of a language or a country will have a good clue of what is likely to offend others. If you know, then avoid such names. An offensive word, or even one that is in a gray area is not the best foundation to base your business on.
Bilingual words
There are times where a word is bilingual. A bilingual word has meaning in two languages. The word may be okay in one language but causes offense in another language. This is a problem especially if it causes offense in the local language. Do your research to ensure the bilingual word is okay in the country or territory in which you are registering your business.
Prohibited punctuation marks
Yes, this is a thing. There is a limit on the punctuation marks you can use on your business name. The frequently accepted ones are ! " # $ % & ' ( ) * + , _ - / : ; < + > ? [ ] \ . Please confirm these with your country’s registrar.
Lastly…
As you have seen, a lot of these reasons are valid. They either protect you or the public from misinformation. Your intentions may be pure but we cannot say the same for the rest of the world. As the saying goes, prevention is better than cure.
Despite what may seem like a million reasons, you can still come up with creative and interesting names for your business. You may find it interesting to check out our discussion on how to choose a business name wisely. Your next step, if you haven’t already, will be to choose a domain name. Here are a few things to know before you buy a domain name.
