Choosing a company name sometimes begins as a creative process and ends with a refusal from the Commercial Register. The reason is usually not a lack of originality, but the use of words that the law allows only in the presence of a license, special regulatory regime, or public status.
A company name is not just a brand. It creates expectations about the type of activity, the level of regulation, and even who stands behind the business. For this reason, legislation sets clear limits.
The law provides that a company name must reflect the truth, must not be misleading, and must not violate public order or morality. In practice, however, there are specific cases where certain words may lead to a refusal of registration, even if they appear formally acceptable.
Words implying licensed activity
Terms such as “bank” or “banking” may be used only by licensed credit institutions. Even if a company intends to provide consulting services, including such wording in the name is not permitted.
The same applies to “insurer” and “insurance company.” These terms are reserved for companies holding a valid insurance license. A company without such a license cannot use these words in its name, regardless of its actual scope of activity.
A similar regime applies to terms such as “investment intermediary,” “fund,” or “investment fund.” These concepts are associated with regulated financial activities and supervision by the Financial Supervision Commission, and therefore cannot be freely used.
Words suggesting public or state status
The use of words such as “state,” “national,” or “agency” may also be problematic. These terms create the impression that the company is part of the public administration or performs public functions, which is not accurate for private commercial entities.
Although companies with similar names already exist, caution is always advisable, as the Commercial Register assesses whether a name may be misleading.
What are the consequences of choosing an inappropriate name?
The most common outcome is a refusal of registration. This results in loss of time, additional costs, and the need to amend already prepared documents. If a company has already been registered under an impermissible name, it may be required to change its name.
How to choose a name without legal risk?
Best practice is to treat the company name not only as a marketing tool, but also as a legal identity. In addition to checking for uniqueness, it is important to assess whether the selected words imply licensed activity or public status that does not actually exist.
If you are in the process of incorporating a company or are unsure whether your chosen name is permissible, the team at G&P Law can advise you at the idea stage – before the Commercial Register issues a refusal. Contact us.
