Legal Aspects of Choosing a Company Name
The choice of a company name in Switzerland is subject to strict legal requirements in accordance with the Code of Obligations. The chosen name must clearly differ from already registered companies and must not be misleading. Furthermore, a company may not consist of a purely descriptive terms.
The legal form suffix must be written in full or specified in the correct abbreviation in the company name. In the case of a sole proprietorship, the owner's last name is a mandatory component of the company name.
Overview of legal form suffixes:
LLC: Gesellschaft mit beschränkter Haftung, "GmbH", "SARL" or "SAGL"
stock corporation: Aktiengesellschaft, "AG" or "SA"
Sole proprietorship: The owner's last name must be included in the company name
The review of the legal admissibility of the chosen name by the commercial registry office only takes place upon registration. In case of uncertainties, a prior clarification is recommended.
Practical Examples
Examples of permissible companies:
Bellerive Consulting LLC
Swiss Innovation Solutions stock corporation
Blumen & Kaffe, Inhaberin Graf
Examples of impermissible companies:
Bank Zürich LLC (misleading, since the term "Bank" may not be used without a banking license)
Schmidt & Co (missing legal form suffix)
Brauerei stock corporation (purely descriptive and therefore impermissible, provided that the purpose of the company refers to the brewing of beverages)
The Role of the Company Name in Branding
A strategically chosen company name shapes the brand identity of your business from the ground up. The legal company name and the trademark must be strictly distinguished: The company is the name under which your business is registered in the commercial register. A trademark is used to identify goods or services. The trademark must be registered in the trademark register to obtain protection. However, your trademark does not necessarily have to be identical to the company name.
The company is the legal name of your business, while the brand is the name under which you appear in the market. For example:
The company "Nestlé S.A." appears with many different brands such as "Nespresso" or "KitKat"
"Meta Platforms, Inc." is the company name behind the brands "Facebook" and "Instagram"
The "Volkswagen stock corporation" carries brands like "Audi", "Porsche" and "Skoda"
Strategic flexibility through separate brands offers companies important advantages. Tailored brand names strengthen emotional customer loyalty and enable clear product differentiation.
Short, concise brand names are easier to remember and are recommended more frequently. Industry-related names directly clarify the field of business.
The separation of company and brand increases competitiveness and enables diversification. This optimises the market positioning of different business areas and promotes sustainable success.
The brand identity develops independently of the legal company name. This separation makes it possible to design both elements optimally for their respective purposes.
Practical Tips for Creative Name Finding
The development of a suitable company name requires a systematic approach. Here are proven methods for creative name finding:
Brainstorming:
Create word fields for your products/services
Combine different terms
Experiment with word abbreviations
Use foreign languages for international orientation
Characteristics of a strong company name:
Short and concise (maximum 2-3 syllables)
Easy to pronounce and remember
Awakens positive associations
Reflects the Unique Selling Proposition (USP) of your company
Creative approaches:
Geographical references: Integration of the location
Important: Here it should be noted that no arbitrary place name can be chosen. The inclusion of a locality in the company name (e.g. Zurich or Biel) is only possible if the registered office of the company is actually located in this locality or political municipality.
Wordplay: Create clever connections
Neologisms: Create new terms
Personal reference: Include names or initials
Perform practical test:
Pronounce the name out loud
Test the spelling
Check the meaning in other languages
Get feedback from potential customers
The chosen name should tell an authentic story and reflect your company identity.
Consideration of Future Expansions: Long-term Planning when Choosing a Company Name
The extensibility of the company name plays a central role in long-term business success. A name that is too specific can limit future business opportunities.
Strategic considerations for a sustainable company name:
Choose neutral terms instead of product-specific designations
Check international usability
Consider potential areas of business
Example: The name "Digital Solutions stock corporation" offers more flexibility than "Smartphone Reparatur Zürich LLC" - it enables expansion into new technology areas and markets.
The right balance between conciseness and flexibility enables your company to develop without compromising brand value.
Conclusion: The Right Company Name as the Key to Success
Choosing a company name is a strategic decision that lays the first foundation stone for your business success.
Careful selection takes time and expertise. Jurata stock corporation stands by your side in this important step - from the first name idea to the legally secure registration in the commercial register. Our experienced experts support you with legal know-how and practical solutions in founding a company. Contact us for a personal consultation.
