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Definition of Trade Name
A trade or fictitious name is any name used in business that does not include the full legal name of all the owners of the business. Your trade name is different from your corporate name; your business may have only one corporate name but as many trade names as you desire.
"Trade name" means a word or name, or any combination of a word or name, used by a person to identify the person's business which:
(A) Is not, or does not include, the true and real name of all persons conducting the business; or
(B) Includes words which suggest additional parties of interest such as "company", "and sons", or "and associates".
A trade name is also referred to as a 'doing business name' or a company name or a fictitious name. This means that the name with which an entity does business is called a trade name.
Why is a trade name important?
A trade name is important because it is the medium that connects the company to the public. It is used in advertisements and for sales purposes, to enable the public to recognize the entity.
A company or an LLP needs to register its trade name under the government body, as the case may be. Registration endows recognition on the company as a separate legal entity. After registration, the company or LLP can enter into contracts and do business in its registered trade name.
It is always advisable to register your trade name as your trademark. This will prevent other companies from using the trade name of a company for their own products. Trademark registration provides holistic protection, giving the owner of a trademark a right to prevent the infringement.
While trade name registration is important for the company to become a legal entity, trademark registration is equally, if not more, important to protect the reputation and goodwill of that company. So the next time you get your trade name/business name registered, be sure to get the trademark for your business name, and connect with trademark experts at Trademarksinn.
Can my trade name be the same as my corporate name?
The answer is no. However, under certain circumstances Corporations Division will allow for organization to register their name as the trade name (ex, "ABC Inc." will be permitted to register "ABC" as a trade name even though it is not required).