The choice of the corporate name is one of the first steps in formalizing a business and directly impacts the legal identity of the company. Although it is a term widely used in the business world, many entrepreneurs still have doubts about what it means and how to define it correctly.

In this article, we will clarify the concept of corporate name, its function, and how to choose an appropriate name for your company.

What is Corporate Name?

The corporate name is the registered name of a company with the competent authorities, such as the Commercial Registry and the Federal Revenue Service. This name is used in contracts, tax documents, and official records. Unlike the trade name, which is the brand used in the market, the corporate name legally identifies the company.

Example: A company may have the corporate name "Almeida & Souza Commerce of Food LTDA" and operate in the market under the trade name "Supermarket Almeida".

What is the Purpose of the Corporate Name?

The corporate name serves important functions for the operation and legality of the business, including:

• Legal registration: Necessary for obtaining the CNPJ and tax registrations.

• Issuance of Invoices: Every invoice must include the corporate name of the company.

• Opening business bank accounts: Financial institutions require the corporate name for opening business accounts.

• Contracts and bidding: Official documents and contracts require the use of the registered legal name.

• Legal responsibility: The corporate name defines who is the owner of the company and its partners, if any.

Difference Between Corporate Name and Trade Name

Many companies have a trade name different from the corporate name. This difference is common and serves distinct functions:

• Corporate Name: Official name of the company, used for records and legal documentation.

• Trade Name: Commercial name, used for identification and marketing in the market.

For example, "Lojas Americanas S.A." is the corporate name, while "Americanas" is the trade name.

How to Define Your Company's Corporate Name

When choosing the corporate name, it is essential to follow some guidelines:

1. Check availability: Before defining the corporate name, consult the Commercial Registry to see if the name is already registered.

2. Include the business type: Companies need to indicate their legal nature, such as "LTDA" (Limited) or "S.A." (Corporation).

3. Be descriptive but objective: The corporate name should reflect the company's segment without being overly long.

4. Avoid generic names: Choose a unique name to avoid legal conflicts and issues with trademark registration.

5. Consider the business image: The name should convey credibility and professionalism.

How to Change the Company’s Corporate Name

If you already have a registered company but wish to change the corporate name, it is possible to make this alteration. The process involves:

• Registration of the change in the Social Contract at the Commercial Registry.

• Updating the data with the Federal Revenue Service and tax authorities.

• Notifying customers, suppliers, and banks about the change.

Importance of Having Specialized Accounting

Defining the corporate name and maintaining the tax compliance of the company are tasks that require planning. Having reliable accounting services ensures that your company is compliant with the law and avoids future problems.

At Beorange, we offer complete support for opening, regularizing, and accounting management of your company. Our digital platform allows you to organize documents, issue invoices, and manage your business in a safe and efficient way.

If you need to open or change the corporate name of your company, count on Beorange to simplify this process. Get in touch and find out how we can help!