Should I choose a numbered company or a custom name?
Inked by Blinc
February 5, 2024The question of the century: numbered company or custom name? Answer: it depends on what you’re doing, either way they’re both legal.
It’s automatically generated for you by Corporations Canada (i.e. 1234567 Canada Inc. or 1234567 Ontario Inc., etc.). Usually people choose these for businesses that don’t have branding associated with them or they don’t care to reserve their name in the system (i.e. a holding company or real estate . Registration is usually more speedier and simple and the name is more private if you choose a numbered company. Usually the types of companies include real estate investment, professional services (lawyers, accountants, dentists), contractors, subsidiaries.
This is probably the most fun you’ll have during the setup process: choosing a name for your business! Your company’s name has to be distinct and follow Corporate Canada’s framework around naming your business:
[Distinctive element] + [Descriptive Element] + [Legal Ending]
Example: Amy’s Cafe Inc.
Other examples include:
| Distinctive | Not distinctive |
|---|---|
| Bieber Transport Inc. | Transport Inc. |
| Swift Carwash Corp. | Carwash Corp. |
| Dhillon Import Ltd. | Ali Ltd. |
| Bunny Masonry Inc. | Bunny Inc. |
| Drake Consulting Corp. | Drake Corp. (probably taken anyways) |
On our setup wizard, we will immediately notify you if the name you are searching for is taken, so feel free to experiment with different names.
The Legal Ending (Company Suffix)
Every corporation must have a legal ending to their name as to show it’s a corporation. Your options include: Inc., Ltd., Corp., Incorporation, Limited, or Corporation.
As long as you choose one, it does not matter which one you choose. It’s mainly for legal purposes, formality and whichever is most aesthetically pleasing to you at that point.
Prohibited Words
Thankfully we are fully staffed with professional CPAs that will help you decide on the best name for your business. Contact us today!
