How to choose a name for your business is one of the first questions that comes to mind after you have indulged in the process of opening a company in Serbia.
After you have made a decision of opening a company or entrepreneurship in Serbia and you have chosen your business activity, next step is definitely determining and choosing your company’s name.
Choosing the most suitable name for your company can sometimes play a key role in successful business operations. However, it is important to know that certain rules and restrictions apply during this process, which we will clarify in detail in this text.
The rules governing the selection of a business name for your company in the Republic of Serbia are regulated by the Company Law and the Law on the Registration Procedure with the Business Registers Agency.
However, when registering a company in Serbia and choosing business name there are also some practical rules that should be considered, which we will also emphasize in following lines.
What does a business name consist of?
The business name of a company consists of several key elements:
- company name,
- legal form (for example ‘doo’ which is form of limited liability company or ‘llc’),
- and the location of its registered seat.
The business name of entrepreneurship consists of:
- proprietor’s full name,
- the designation ‘preduzetnik’ or ‘PR‘ and
- the location of the entrepreneurship’s registered seat.
Therefore, difference between company’s and entrepreneurship’s business name is that in case of entrepreneurship there is no obligation to indicate the name, as it is not a mandatory element of a sole proprietorship’s business name.
Differences between a business name and a company name
As seen above, a company name is only one of obligatory elements of a business name of a company. The business name of a company consists of a company’s name (which is the most specific part of a business name), indication of a legal form and location where the company’s seat is registered.
For example, full business name would be: ABC doo Beograd (Stari grad) / ABC doo Belgrade (Old town). In our example, ABC is a name of a company, doo is legal form (limited liability company) and Beograd (Stari grad) represents the indication of company’s location.
A name of the company is the element of a business name which helps company to be recognizable and reach uniqueness in the market. It is what sets one company from another, and what makes one business stand out and it is where you should be creative when thinking about a company’s name.
Rules in practice when choosing business name
However, there are strict rules when choosing a company’s name and those rules are intended to protect other businesses on the market who are already registered under same or similar business name.
In that sense it is not possible to register a company before Serbian Business Registers Agency under same business name, i.e. company’s name that is already registered.
When reviewing registration form for opening a company in Serbia, Serbian Business Registers Agency also conducts the examination of a business name and checks whether there is already a company or sole proprietor in the with the same or a similar business name.
Also, the Business Registers Agency also considers whether the two entities are engaged in the same business activity. If this is the case and if their business name is same or similar, then the registration will be declined.
Business name reservation
Then what should you do to be sure that you will be able to register a company with business name you want? There is a possibility to conduct the reservation of a company’s name before even registering company.
The name reservation process is initiated by submitting an application to the competent register along with proof of payment of the name reservation fee. Fee is 1.670,00 RSD (approx. EUR 14) for limited liability company and 1.050 RSD (approx. EUR 9) for entrepreneurship.
If the conditions for name reservation are met, the registrar issues a confirmation of name reservation within five working days from the application submission date and enters the reserved name into the database of reserved names. The name is reserved for a period of 60 days from the publication date. This period can be renewed for an additional 60 days before the initial reservation period expires, upon payment of the reservation fee.
This option gives you security that you will be able to establish a company in Serbia with chosen business name, since also in the process of name reservation Serbian Business Registers Agency reviews business name and if it meets criteria, it approves reservation.
Further to this, it is very common in practice to register also a short business name which consist only of company’s name and indication of legal form. Therefore, in this case there is no indication of company’s location.
Next common question in practice is whether it is possible for a company’s name to be registered in foreign language? Answer to this question is – yes!
Although it is a rule that the business name of a company must be in the Serbian language, using either the Cyrillic or Latin script, there is also a possibility that the company name may be in a foreign language or include certain foreign words or characters, using the Latin script of the English language, as well as Arabic or Roman numerals.
What you should be aware of is the fact that business name must be indicated and written in the same manner in Memorandum of Association as well as in registration form. If the business name is written using Latin script in Memorandum of Association than it must be identically written in registration form.
Mandatory legal rules regarding the selection of a business name and company name
During the process of selecting a company name, various irregularities often occur in practice, which you should be aware of, whether you are a legal entity or a sole proprietor.
The mandatory legal rules regarding the selection of a business name and company name are:
- The business name of a company cannot:
- Offend public morals;
- Create confusion regarding the legal form of the company;
- Create confusion regarding the company’s predominant activity;
- The business name of a company may include the word ‘Serbia’, but only with prior approval from the competent authority;
- The business name of a company may also include the name of a foreign country or an international organization, with the consent of the competent authority of that country or international organization;
- A company may use a translated version of its business name or a translated version of its abbreviated business name in its operations.
How to check if your company name is available to register
Serbian Business Registers Agency (SBRA) has the option to check whether there is already a company or sole proprietor in the unified register with the same or a similar business name, engaged in the same or related predominant activity.
Such option is available through the search of data base of registered business entities on the SBRA’s website.
Tips and ideas on how to choose a business name for your company
When choosing a business name use these advices to help you make sure the solution you land on is memorable, connected to your core business, easy to pronounce on a call, and simple to spell via text:
Choose a name that describes your business as literally as possible
When choosing a name for your company it is important to reflect the core of your business, in order for your potential clients and customers to connect it easily with exactly your company.
That is why it is a good idea to insert a word or two in your business name that will in a specific way link it with your business.
Make up a company’s name that’s unique, memorable, fun & fresh
The process of choosing a business name can be tricky, which is why you should pay additional attention when making this choice. In order to stand out on the market, business name of your company should definitely be unique and memorable.
The idea is that when a potential customer or client reads a company’s name it automatically associates them with your business.
Make it sure it’s easy to spell and pronounce, short and simple
One more advice when it comes to choosing a business name is to make it as concise as possible. Concise name is easier to remember, spell, and pronounce. That is why it is our suggestion to avoid complicated words or long phrases.
In that way you can prevent confusion among your potential clients when searching for your business.
Leave room for growth and consider overseas hurdles
If you plan to operate internationally, then try avoiding names that might limit your business expansion.
Consider that a highly specific name connected to one territory may not be good choice if you decide to broaden your services or enter new markets.
Test the company’s name’s longevity, avoid trendy terms or slang
One important tip when it comes on determining your business name is to choose a name that will stand the test of time.
That being said, try avoiding names that are too tied to current trends or contain slang words. Rather opt for a name that remains professional and appealing for years to come.
How to protect a business name in Serbia?
Even though choosing a business name is important process, the process of protecting a business name should not be overlooked. The protection of business name actually included the protection of its part – company’s name.
Although Serbians Business Registers Agency examines the eligibility and availability of business name registration in the process of registering a company, it is important to note that this mechanism is not the only available in this regard and sometimes it cannot be reliable.
One mechanism that we also mentioned is reservation of the business name.
However, there are also other mechanisms of protection of a company’s name:
- protection through trademark registration in Serbia and
- claim.
It is clear that intellectual property rights are tightly connected with the brand of the company, including company’s name. Trademark registration is conducted before The Intellectual Property Office of the Republic of Serbia.
The claim can be submitted in case that the registration of a company with the same or a similar name is mistakenly approved. In that case, the party or company suffering the infringement can request the change of the infringing company’s name and/or compensation for the incurred damage.
When considering this option bear in mind that the deadline for submitting the lawsuit is three years from the date of registration of the infringing company’s name.
Conclusion on choosing a business name in Serbia
Considering all above mentioned it is clear that choosing and protecting a business name, i.e. company’s name is important step when deciding on opening a company in Serbia.
Besides legally prescribed procedures related to the rules on the choice of company’s name and mechanisms for protection of company’s name, it is important also to be aware of the current practice and some practical points. That is why our legal team is eager and ready to provide full legal assistance and guidance in every step of this process.
