The name of a business does not have any legal existence. It simply represents a business entity to the public. In other words, it’s not the business entity that can be held responsible for debts and obligations but rather the owner(s).
So, if the business name does not has any legal existence in its own right, why do you need one?
Though the business name is not a necessity, it is still recommended. And, of course, there are several reasons for the same.
For instance, it helps in creating a brand name before your customers. As a result, the customers can trust your business and make valuable contributions (sales) to it.
Besides, having a business name helps distinguish your business from your competitors. Thus, giving you an edge in the market share.
Note: A business name is not the same as the trade name. So, you should rather not confuse these two terms.
Once you’ve decided to register your business name in Alberta, you’ll need to follow some provincial obligations and guidelines.
The steps involved are as follows:
When choosing a name for your business, you are not required to be unique. However, it does help when you wish to create a brand out of it.
There are specific rules to choosing a business name. For starters, the corporate law in Alberta recommends not using words like ‘limited’, ‘incorporated’, or ‘corporation’ in the title. It would, otherwise, imply that you’re setting up a corporation.
Also, using any french form or abbreviations for these words is not allowed.
It is not mandatory to get a business name report for registering your business name. However, having a report can warn you of the potential dangers.
For instance, if there are other businesses named similarly, you may face infringement charges in the future. Or, at worst, the other company can charge you for reputation damage.
Besides, the report would also suggest trading names that could help your business avoid any legal troubles in the future.
The next step is filling out the necessary forms. Essentially, the form templates may vary from business to business.
For instance, the forms to be filled for a sole proprietorship would differ from those for a Limited Liability Partnership. You’d need to fill out the details for every partner and their contribution to the business in the latter.
This is mandatory as the ordinances would treat your business accordingly. And any discrepancies in the information you supply can land you in legal trouble.
The last step is taking all your information to an Alberta registration service provider. You’ll need to hand over the name you propose for your business, the business name report (if you have one), and the forms.
The service provider would then enter your business name into the register. And handover a receipt or acknowledgment of receipt for the same.
And it’s done. Your business name is now legally registered in Alberta, Canada.