Legal Aspects in Choosing a Company Name
The choice of a company name is subject to strict legal guidelines in Switzerland according to the Obligationenrecht. The chosen name must clearly differ from already registered companies and must not be misleading. In addition, a company name must not consist of a purely descriptive term.
The legal form suffix must be written out or specified in the correct abbreviation in the company name. For 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, "LLC", "SARL" or "SAGL"
stock corporation: Aktiengesellschaft, "AG" or "SA"
sole proprietorship: The owner's last name must be included in the company name
The check 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" cannot 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 company from the ground up. A strict distinction must be made between the legal company name and the brand: the company name is the name under which your business is registered in the commercial register. A brand is used to identify goods or services. The trademark must be registered in the trademark register to receive protection. Your brand does not necessarily have to be identical to the company name.
The company name is the legal name of your business, while the brand is the name under which you appear on 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 benefits. Tailor-made brand names strengthen emotional customer loyalty and allow clear product differentiation.
Short, concise brand names are easier to remember and are more frequently recommended. Industry-specific names directly clarify the business field.
The separation of company name and brand increases competitiveness and enables diversification. This optimizes the market positioning of different business areas and promotes sustainable success.
The brand identity develops independently of the legal company name. This separation allows both elements to be optimally designed 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
Evokes positive associations
Reflects the Unique Selling Proposition (USP) of your company
Creative Approaches:
Geographical references: Integration of the location
Wichtig: Here it must be noted that no arbitrary place name can be chosen. The inclusion of a town in the company name (such as Zürich or Biel) is only possible if the company's registered office is actually located in this town or political municipality.
Wordplay: Create clever connections
Coined words: Create new terms
Personal reference: Include names or initials
Conduct Practical Test:
Say the name out loud
Test the spelling
Check the meaning in other languages
Gather 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 expandability 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 future-proof company name:
Choose neutral terms instead of product-specific descriptions
Check international usability
Consider potential business fields
Example: The name "Digital Solutions stock corporation" offers more flexibility than "Smartphone Reparatur LLC" - it enables expansion into new technology areas and markets.
The right balance between conciseness and flexibility allows your company to evolve without compromising brand value.
Conclusion: The Right Company Name as a Key to Success
The choice of company name is a strategic decision that lays the first foundation block 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 compliant entry in the commercial register. Our experienced experts support you with legal know-how and practical solutions during company foundation. Contact us for a personal consultation.
