How do you come up with a company name, and what is a trade name?

Are you starting a new company and not sure what to name it? And what exactly is a business name? We’ll tell you all about it! First, we’ll look at company names from a creative perspective, and then from a legal standpoint. The right name will set your company apart from the competition and help make you memorable.

How do you come up with a name for a new company and brand?

You can come up with a company name on your own or hire professionals—whether a creative agency or an individual—to do it for you. It’s important to note that a company name (unlike that of a sole proprietorship) doesn’t have to be the same as the brand name. For example, the e-shop Rohlík.cz is owned by Velká Pecka s.r.o. So if you don’t want to spend a lot of time thinking about the name of your s.r.o. or a.s. (i.e., your business name) and need to set up the company quickly, that’s not a problem. Feel free to come up with a suitable brand name later; for now, the important thing is to secure an available business name.

Brainstorming is key

A brand name doesn’t have to precisely describe the nature of your business. On the contrary, a sufficiently vague name allows for expanding your product range in the future. If you don’t use the services of experts, discuss your choice of name with others and ask them what they think of your idea.

Coming up with the right name is a creative process, so brainstorming is a good approach —no idea is too far-fetched; the important thing is to have a starting point. Write down all your ideas. Aspiring entrepreneurs usually involve a future business partner, family, or friends in the brainstorming process. Do you know your target audience? Great—try to find out what they think of the name, or create a survey asking them to rate the alternatives you’ve come up with.

And how can you tell if a company name is good? Of course, this is subjective, but there are still several basic attributes that a quality brand should meet. The ideal name is:

• simple,
• short (5–12 letters),
• pronounceable both in the Czech Republic and abroad,
• memorable,
• unique.

Once you’ve chosen a company name, we strongly recommend registering a trademark for it. This will prevent anyone from freeloading off your brand.

Techniques for Coming Up with a Company Name

So how exactly do you come up with a new company name? Here are a few methods that can help you during brainstorming:

• Wordplay. Start with a list of words you want your company to be associated with, or that describe its activities. Then start mixing them up, adding letters or prefixes. An example of a successful brand name created using this method is Slevomat.
• Acronyms. Take the first letters or syllables of words relevant to your company and combine them into a pronounceable acronym. These could be the first syllables of your products or even your child’s initials. You can also use generators like Acronymify. For example, IBM (International Business Machines) got its name using this method.
• The founder’s name or place of origin. Among the 100 most valuable brands in the world, 37 include the founder’s name, so this is a popular technique. The Bernard Brewery and the Kunín Dairy have both used this approach. However, ask yourself whether you plan to expand abroad; not all Czech names or town names are easy to pronounce in other countries. The person in question must consent to the use of their name. And be careful: if the ownership structure changes in the future, the name may no longer reflect reality.
• A foreign word. You can come up with an original company name by adopting a term or phrase from a foreign language. Look among less commonly used languages—this will give you a better chance of standing out. For example, the company Hamé got its name through translation; in Irish, the name means “home.”

No matter which approach you choose, it’s important to set a reasonable time frame for coming up with a name. There’s no point in getting “stuck” on a company name for months; for customers, the price and quality of the product or service will always be more important. Devote a maximum of 14 days to this task. If you’re still unsatisfied after that, don’t despair. You can easily change the name in the early stages. Even Amazon was originally called Cadabra.

Research the competition and trademarks

While brainstorming names , review the names of companies that offer similar or identical products or services. You can find inspiration and, at the same time, check whether the name you’re considering is a registered trademark. However, checking company names won’t reveal all potential conflicts—a trademark may be registered only for a specific product, for example.

If you want to be sure that your brand is original and that you won’t find a letter from lawyers in your mailbox soon after, order a professional search. We’ll be happy to conduct this for you as part of the trademark registration process.

Check for Available Domains

Before you decide on the final version of your name, check for available domains. Don’t underestimate the importance of this step for any business—not just an e-shop. You’ll definitely want to create a website or email addresses on your own domain. If you check availability early—and ideally purchase the domain right away—you’ll save yourself a lot of headaches.

Are you planning to do business only in the Czech Republic? Even so, be sure to also get the international .com version of the domain. The investment isn’t high, and if you decide to expand, you’ll have the assurance that the domain is yours. That way, you won’t have to deal with potential disputes or buying it from a third party later on. You can check domain availability on the CZ.NIC website or, for international domains, on the Instant Domain Search page.

What Is a Trade Name?

We’ve discussed how to choose a company name, and while creativity is certainly an important part of the process, the name must also meet legal requirements. A company name is referred to as a “trade name,” which, according to the Civil Code, is the name under which the company is registered in the Commercial Register. A “business name” is usually the same as the name under which the company operates publicly, but this is not always the case.

All companies in the Commercial Register must have a trade name, and each may conduct business under only one name. A mandatory part of the trade name is a legally required suffix indicating its legal form (e.g., s.r.o. or a.s.).

Do you need help registering a trademark or starting a business?

You should protect your unique name. Take advantage of our trademark registration service and become the true owner of your brand. Want to know more? Don’t miss our article on why it pays to have a trademark. You’ll quickly realize that a business name alone isn’t enough.

Are you planning to start a business and don’t want to deal with the paperwork involved in setting up a company? Contact us. We’ll set up your company entirely online, exactly according to your specifications, and advise you on how to choose a business name. And if you have any questions, fill out the contact form, and we’ll get back to you.