Operating a corporation often means building a distinguishable identity for your business. Adding a trade name, operating name, or “doing business as” (DBA) to your corporation is one of the more common ways to do that. The following guide will instruct on how to add trade name to corporation and further define some of the reasons why you might want to. Whether you’re looking to expand your brand or target a niche market, this step-by-step approach simplifies the process.
What is a Trade Name?
A trade name is another name under which your corporation does business. Although your corporation files under a legal name, a trade name allows flexibility with regard to branding and marketing.
For instance, where your firm is legally named “Smith Enterprises Inc.,” you may want to operate under “Smith Digital Marketing” to specialize in some kind of market segment.
Why Add a Trade Name to a Corporation?
Following are some convincing reasons for adding a trade name to your corporation:
1. Market Expansion
When you add trade name to corporation, it allows you to tailor your branding to different customer bases or industries. For instance, a corporation named GreenTech Solutions Inc. may file a trade name such as GreenTech Solar Supplies to service or target a niche area of the solar energy field.
2. Economical Branding
Changing the legal name of a corporation involves more administration and cost than does registration of a trade name, and would be less inconvenient and you can create a specific brand identity for different product lines or services.
3. Simplified Marketing
A memorable merchandise name, specific to the market, will make it easier to relate to your target audience and will build up recognition and customer trust.
How to Add Trade Name to Corporation in a Few Easy Steps
Step 1: Understand Local Regulations
Trade name registration requirements vary across provinces in Canada. Before proceeding, familiarize yourself with the specific rules in your province or territory. For example:
- Ontario’s trade names are processed through Service Ontario.
- Trade name registrations in Alberta are made through the Alberta Corporate Registry.
- In BC, the registry is through BC Registries and Online Services.
Step 2: Choose Your Trade Name
Following are some of the key factors in the selection of a good trade name:
Distinctiveness: The trade name should not be identical or deceptively similar to some other filed business name in your province.
Clarity: A name should not be too general or vague.
Relevance: Choose a name that aligns with your business’s branding and target audience.
Pro Tip: Do a name search through the provincial databases in order to confirm that the desired name is in fact available. Use this tool to do a Name Pre-Search.
Step 3: Register the Trade Name
Following are the general steps how to add trade name to corporation:
a. Gather Required Documents
Typically, you’ll need:
- Your company’s full legal name, and your company’s registration number.
- A completed trade name registration form.
- The applicable registration fee.
b. Filing of Registration
Complete a simple online form on Incorp Pro website and our registration professional will take care of the rest. You can register a new trade name or renew existing trade name within 2 business hours here.
c. Payment of Fees
The registration fee of the trade name is different in each province and can be in the range of CAD 75-295.
Step 4: Amend Your Corporate Records
Once the trade name is registered, update your corporate records to reflect this new operating name. This will keep you in compliance with provincial legislations and avoid possible confusion in case of audit requirements or court cases.
Legal Considerations in Utilizing a Trade Name
1. No Separate Legal Existence
A trade name is not a separate legal entity. Your corporation remains legally responsible for all contracts, liabilities, and obligations associated with the trade name.
2. Trade Name vs Trademark
Whereas a trade name simply allows you to operate under a particular name, a trademark is a mark that gives you exclusive legal protection for your branding elements, including your name, logo, or slogan. If you want additional protection, you may want to consider registering your mark.
3. Tax Considerations
All your corporation will still pay its taxes in its legal name, even if your business operates under a trade name. Just make sure you consult with an accountant to enable this to go through seamlessly.
4. Financial Transactions
When opening a business bank account, make sure to include both your legal and trade name to ensure all payments and transactions are processed correctly.
Maintaining and Renewing a Trade Name
Most provinces require periodic renewal of trade name registrations. Mark your calendar for renewal deadlines to avoid lapses in registration. If you fail to periodically renew your trade name it may be cancelled, which could interfere with your business operations.
How Adding a Trade Name Fosters Growth: Success Story
GreenTech Innovations Inc. is a fast-growing Canadian corporation, specialized in the rechargeable energy solution area, created with a mission to change the regular approach toward sustainability by businesses and households. The company has had years of experience and earned a prestige for being able to offer industrial clients large-scale solar and wind energy installation. However, this leadership team started to notice there was a gap within their business strategy that meant some lagging behind in their output.
Identifying the Problem
One day, at a quarterly strategy meeting, CEO Sarah Bennett noted with pride:
Our industrial segment is great, but we’re losing with the big market of residential homeowners. They, too, have to be catered to for solar solutions, and they wouldn’t relate to the branding we have since it sounds too corporate.
The problem was clear: GreenTech Innovations Inc. was a name of immediate trust for industrial clients but needed an identity that was friendlier to approach residential customers.
The team brainstormed on how to venture into the residential market without confusing or alienating their current client base.
Choice of Trade Name
After extensive market research, the team decided to add trade name to corporation: “SolarEase.” Simple, relatable, it said just what they wanted residential customers to feel: ease, simplicity in adopting solar energy.
The name would be legally ‘GreenTech Innovations Inc.’ for industrial operations and administration, although it would do business in the residential marketplace under the trade name of SolarEase to offer a new, consumer-friendly brand identity.
The Process of Adding the Trade Name
With the help of her team, Sarah registered the trade name with the state’s legal and marketing departments. They did the following:
- Conducted a name search to verify the uniqueness of the name “SolarEase” and its possible availability.
- They applied for getting their trade name registered with the provincial registry through Service Ontario.
- They updated their corporate records to reflect the new name of operation.
In a matter of weeks, the documents were in place, and SolarEase was now ready to launch into business.
How the Trade Name Helped the Corporation
1. Business Segment Differentiation
By adding the trade name, GreenTech Innovations Inc. could keep their established industrial brand identity and create another identity for residential clients. The industrial clients were still counting on Greentech to provide big solutions, while the homeowners like the friendly approach of the SolarEase brand.
2. Boosting Marketing Effectiveness
The SolarEase name provided a solid foundation for targeted marketing campaigns, locally targeted advertising, and social media campaigns featuring family-friendly imagery. Homeowners found SolarEase’s branding relatable, inclusive, and more engaging.
3. Diversifying Revenue Streams
In less than one year since its registration, SolarEase trade name helped GreenTech Innovations Inc. grow revenue for 25%.
The trade name gave the corporation the flexibility to expand into a new market while retaining the same brand entity.
This is the story of how to add trade name to corporation and get a strategic tool to operate in the competitive market, adapt and expand. Be it entering new industries or targeting new audiences, or even refining your brand image, a trade name can bridge the path to greater success.
FAQs Adding a Trade Name to Your Corporation
1. Does a Corporation Can Have Multiple Trade Names?
Yes, a corporation can register multiple trade names as long as each is different and duly registered.
2. Is Registration of Trade Name Compulsory?
Yes, in most states you have to register the name if you plan to use something other than the legal name of your corporation while dealing with business transactions or operations.
3. With a Trade Name, Can I Operate Nationwide?
Trade names are a provincial registration, and you may be required to add trade name to corporation separately in each province within which you will operate under that name.
Conclusion
Adding a trade name to your corporation in Canada will be a great way of expanding your brand, targeting niche markets, and operating flexibly without changing your corporation’s identity in law. If you follow the steps above, then you will have effectively executed the trade name registration process and set your business up for success. Ready to take the next step? Begin the process now and discover how operating with a versatile trade name can benefit your corporation. By strategically taking advantage of your operating name and correctly processing your requirement for how to “add trade name to corporation,” you will open up new doors to your business. For more information about business registrations and branding in Canada, and to learn about other resources on trade name registration and compliance for your corporation, be sure to check out the other related articles on our website.