HOW TO CHOOSE A LEGALLY COMPLIANT NAME FOR YOUR BUSINESS
- Posted by Admin1
- On June 26, 2020
Choosing a name for your business is very important, your name is the first thing used to distinguish your brand. The right name can be a trademark and a name is an asset. You have the liberty to choose a name for your business but;
There are words and phrases you are never to use while forming a name for your business, really?
Yes, section 30 of the Companies and Allied Matters Act(CAMA) regulates the choice and use of names.
These names fall under two categories;
- Prohibited names and words; you are completely barred from using these words or names.
- Restricted names and words; you may use only with the consent of the registrar general of the Corporate Affairs C
Prohibited names and words; you are totally barred from using these words and phrases to your name
- Words that infringe a registered name or trademark, once a name is registered either with the corporate affairs commission or as a trademark you are no longer permitted by the law to use that name or a name too similar to such name, otherwise you will be liable for a passing off action or an action for trademark infringement. This is the main reason why you should research a name properly before using it.
- Names that are against public morality and interest For instance “using words like armed robbery association” igbo smokers gang” These names are against public morality, you should refrain from using such nsmes.
Restricted names and words;
- You may only use only these words with the consent of the registrar general of the Corporate Affairs Commission and have met the conditions in section 30 of the Companies and Allied Matters Act (CAMA) regarding the choice of names.
- Words like, “ministry, federal, municipal, government, state, national and any other name which suggests government patronage or ownership, since you are not the government you should not mislead the public to assume you are a government agency.
- Words like building society, holding company, subsidiary company, chamber of commerce, chartered, co-operative.
EFFECT OF USING THE WRONG WORDS
- When you use such names the commission reserves the right to refuse registering your business or association.
-KINDNESS NDUBA Esq.
Is a business lawyer and the founder bizreg.ng