Business name

What it means

A business name is the name under which an entrepreneur acts in legal relations and which is entered in the commercial register or the trade register. Under this name the company signs contracts, issues invoices and deals with authorities.

The business name of a company must include an indication of its legal form, for a limited liability company spol. s r. o. or s. r. o. A sole trader’s business name consists of their first name and surname, to which they may add a distinguishing suffix.

A business name must not be confusable with another entrepreneur’s name or give a misleading impression of the business. It is protected by the Commercial Code, but this is different protection from a trademark, which protects the designation of goods and services.

How it works in practice

When a company is set up we first check that no similar name already exists in the commercial register, that the matching domain is free and that no similar trademark is registered. A later dispute over a name costs more than changing it at the start.

The business name, registered office and company ID must appear on every invoice, on the website and in business correspondence, and for a company also the details of its registration. When a name changes we therefore prepare a list of everything that needs updating.

A change of business name requires a decision of the general meeting or the sole shareholder, an amendment to the articles and an application for entry in the commercial register. The change takes effect on registration; until then the company trades under its old name.

What to watch out for

The brand a company sells under often differs from its business name. Invoices and contracts, however, must always show the exact business name from the register. A contract signed under a brand without the correct name can lead to disputes over who the contracting party actually is.

If a company uses a name confusable with someone else’s, the injured party can demand that it stop and claim damages. When expanding abroad it is worth checking the name in the target country’s registers too and considering an EU trademark.