Choosing the right company name: tips and tricks

Choosing the right company name: tips and tricks for founders

The choice of company name is one of the most important strategic decisions when starting a business. The company name significantly shapes the identity of your company in the eyes of business partners and customers, which is why it is worth making a considered decision.

In this guide, you will learn:

• What legal requirements your company name must meet

• The role your company name plays in brand building

• Practical methods for creative company naming

• Strategies for a future-proof company name

• Conclusion

1. Legal aspects of choosing a company name

The choice of a company name in Switzerland is subject to strict legal requirements according to Obligations Law. The chosen name must be clearly distinguishable from already registered companies and must not be misleading. Furthermore, a company may not consist solely of a purely descriptive term.

The legal form suffix must be stated in full or in correct abbreviation in the company name. For a sole proprietorship, the last name of the owner is a mandatory component of the company name.

Legal form suffixes at a glance:

• GmbH: Limited Liability Company, "GmbH", "SARL" or "SAGL"

• AG: Public Limited Company, "AG" or "SA"

• Sole Proprietorship: The owner's last name must be included in the company name

The examination of the legal admissibility of the chosen name by the commercial register office takes place only upon registration for entry. If there are uncertainties, a prior clarification is recommended.

Practical Examples

Examples of permissible companies:

• Bellerive Consulting GmbH

• Swiss Innovation Solutions AG

• Flowers & Coffee, Owner Graf

Examples of impermissible companies:

• Bank Zurich GmbH (misleading, as the term "Bank" may not be used without a banking license)

• Schmidt & Co (missing legal form suffix)

• Brewery AG (purely descriptive and thus impermissible, if the purpose of the company relates to brewing beverages)

2. The role of the company name in brand building

A strategically chosen company name fundamentally shapes the brand identity of your company. The legal company name and the brand must be strictly distinguished: The company is the name under which your company 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. However, your brand does not need to be identical to the company.

The company is the legal name of your business, while the brand is the name under which you operate in the market. For example:

• The company "Nestlé S.A." operates with many different brands such as "Nespresso" or "KitKat"

• "Meta Platforms, Inc." is the company name behind the brands "Facebook" and "Instagram"

• The "Volkswagen AG" has brands like "Audi", "Porsche" and "Skoda"

Strategic flexibility through separate brands offers companies important advantages. Tailor-made brand names strengthen emotional customer loyalty and enable 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 and brand increases competitiveness and allows for diversification. This optimizes the market positioning of different business areas and promotes sustainable success.

Brand identity develops independently of the legal company name. This separation allows both elements to be optimally designed for their respective purposes.

3. Practical tips for creative naming

Developing a suitable company name requires a systematic approach. Here are proven methods for creative naming:

Brainstorming:

• Create word fields related to 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

Important: It should be noted that no arbitrary place name can be chosen. The inclusion of a municipality in the name (e.g., Zurich or Biel) is only possible if the company's registered office is actually located in that municipality or political community.

• Word Plays: Creating clever connections

• Invented Words: Creating new terms

• Personal Reference: Incorporating names or initials

Conduct a practical test:

• Say 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's identity.

5. Consideration of future expansions: Long-term planning in choosing a company name

The expandability of the company name plays a central role in long-term business success. A too specific name can limit future business opportunities.

Strategic considerations for a future-proof company name:

• Choose neutral terms instead of product-specific designations

• Check the international usability

• Consider potential business areas

Example: The name "Digital Solutions AG" offers more flexibility than "Smartphone Repair Zurich GmbH" - it enables expansion into new technology areas and markets.

The right balance between conciseness and flexibility allows your company to grow without jeopardizing brand value.

Conclusion: The right company name as the key to success

The choice of company name is a strategic decision that lays the first cornerstone for your business success.

The careful selection takes time and expertise. Jurata AG is here to assist you 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 for founding your company. Contact us for personal advice.