The main objective of Industry Canada when incorporating a federal company is to have protection for the name across Canada. In order to accomplish this, the federal government must ensure that any name that is proposed does not conflict with any other name being used by an existing business anywhere in Canada. The federal government has established a: FEDERAL NAME GRANTING COMPENDIUM
Procedure for Approval of a Name for a Federal Company
Step 1 – Have a Search House perform Preliminary Name Searches against your Proposed Name.
Step 2 – Have a Search House submit your proposed name for a Federal Name Decision Report.
Preliminary Name Searches
To save yourself time and money you should first do a preliminary name search through an experienced search house. The reason you should have someone experienced perform a preliminary name search is to weed out obvious conflicts to the name. If too many conflicts to the name show up on the preliminary name search a new name can be chosen BEFORE the cost of a NUANS report is incurred.
A search house is trained to look for these types of conflicts. If you do not have a preliminary name search done and the federal government rejects your proposed name search you will be required to order another search and submit another request for approval.
Resources For Canadian Business Owners Inc. performs unlimited preliminary FREE name searches with the purchase of a Federal NUANS report.
For more information on what needs to be considered when you choose a name refer to CHOOSING A NAME FOR YOUR BUSINESS.
Federal Name Decision for a Federal NUANS Report
The federal government can provide you with a Federal Name Decision which can be obtained in advance of filing your articles and save wasted time and money. However, a Federal Name Decision cannot be obtained without first providing a Federal NUANS report.
It is advisable to use a search house to assist you with this request because search houses are aware of how to argue a negative decision. If conflicts to your proposed name are highlighted by the Federal government which provides that the name is rejected, a qualified search house will exam those conflicts and in many cases rule them out as conflicts to your name. A second submission will be submitted for a reconsideration of the original request.
Frankly there really is no guarantee with the Canadian federal government when it comes to names but experience can help make the process go much more quickly and reduce the likelihood of a rejection to a small percentage. We have 30 years experience working with Industry Canada in clearing names.
Once you have your Name Decision Report and the name search report in hand you can then use these to register your federal company.
Federal Name Granting Compendium
The federal government has complex Name Granting Guidelines when accepting a Federal NUANS Name Search.
The name that you pick for your proposed company should contain at least three but preferably five words and be very descriptive of the type of business that you intend to conduct. A preliminary name search should be done to determine if there are any similar names. If any similar names come up from the preliminary name search, the name should be rejected and a new proposed name should be picked.
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Since preliminary name searches are free with the purchase of a Federal name search, when you use our service, you can continue searching names until you have picked one that is sufficiently different than other corporate names. As part of our service, Resources For Canadian Business Owners Inc. will perform an unlimited number of preliminary name searches for you when you purchase a name search or when you purchase a Federal Name Search and Federal Name Decision.
Once we believe that you have a name that is sufficiently different than others, a full NUANS Report can be ordered. There will more than likely be additional names on the corporation name search that are similar in one way or another to the name you have picked. The federal government will query any name that is similar in any way, even if it sounds the same but is spelled differently.
The name search should be submitted to Industry Canada for approval. A very complete description of the nature of business of the proposed company should also be provided to Industry Canada. They will use this description as part of the consideration they give to granting you approval of the name.
Further if any of the words in the name are a combination of letters rather than an actual word, this should be explained and, if any of the words in the name are in another language, Industry Canada should be informed of the language and meaning of the word.
The more information that you provide to Industry Canada, the more likely you will be able to obtain approval of the name. Providing Industry Canada with the City and province in which you are carrying on business will also help.
Further, if you own a business using any similar name such as a sole proprietorship then you should advise them of this as well. The federal government will then provide you with a Name Decision approving your proposed name and you will be provided an approval number.
If Industry Canada rejects your proposed name you will be provided with an explanation as to why. If they feel the name is too similar to another name being used by an existing company, you can look into the nature of business of that company and find out (a) what they do, and (b) whether they are still in business. If the nature of business is substantially different than your proposed company then Industry Canada may provide its consent to you for the use of your proposed name regardless of whether they first said no to your name.
You may be able to determine the nature of business by checking Yellow Pages or calling and discreetly attempting to determine the nature of business. You can obtain more information about the conflicting company by obtaining a corporate search. A corporate search will provide you with the address of the company and the names of the directors and officers so that you have more information to find out whether the company is active.
If, after doing searches you have determined that the existing corporation is no longer in existence, you may, as well, be granted approval by Industry Canada for the use of your proposed name and can request a re-examination.
You would send a further letter to Industry Canada outlining the information that you have researched and ask them to reconsider your choice of name again. In some cases, Industry Canada will allow you to use the name on the basis that if anyone challenges the name at a later date, you will endeavour to change your name. If, after all efforts have been attempted, your name is still rejected you will need to start the entire process over again.
This procedure is best performed by a qualified search house.
Resources For Canadian Business Owners Inc would be glad to assist you with obtaining an available name.