Parameters of legally naming that business

One of the things that make a business stand out is a name. Some names are very catchy that a company quickly becomes a household brand.

However, other businesses realise that their names have become boring or outdated and try to imitate or create names close to the already existing ones. But experts say it is better to do research if the name you are about to use in your business is not used by someone else.

Many company names have been imitated, for instance, famous brands such as Sony, Panasonic, Nike, and Puma with brands like Sqny, Pansonic, and Nike among others.

Tussling it out

Currently, two funeral service firms are locked up in a court battle over a trading name where Uganda Registration Services Bureau (URSB) was sued for registering a name similar to theirs. A-Plus Funeral Management Limited sued A-Class Funeral Services Uganda Limited and Uganda Registration Services Bureau for registering a name similar to theirs.

Business coaches and lawyers say a business name is important and it should jealously be protected right from the beginning.

Mr Kato Mukasa, a lawyer with Mukasa Lugalambi & Company Advocates, says a business name is given to companies or firms not incorporated, for example, law firms.

He also explains that ‘company names’ are for companies that are incorporated in Uganda. What matters is that both a business and company name must be registered. It is important to register them before doing business.

Mr Mukasa says when you register your company name it gives you identity and that identity gives you individuality, character and distinctiveness.

 “When you are registered, it is hard for the registrar to give your name to someone else; the laws of Uganda explain that if you want to register a name, you have to go to the registrar,” he says.

Securing name

Is your intended business name similar to the existing?”

 Most importantly, if any business owner is trading informally, it is important to secure the business name to compete favourably in the market and access other opportunities such as bidding for bigger jobs. This can only be achieved once your business is formally registered.

 Ms Provia Nangobi, the head of public relations and corporate affairs at URSB, explains that before a business name certificate is issued, clients are expected to go through a name reservation approval.

 She explains that by this process, a client is requesting to provide three names in order of priority that go through the name check system and once cleared, they can proceed with the process of registration.

 “Once a name is found to be similar to any in existence, a client will be informed and will not be able to complete the registration process. The name reservation can be done on our website- eservices-name reservation; forms can be filled online,” she says.

Process

 Ms Nangobi adds, “You start with name reservation. Once approved, you proceed to make payments, and submit the form for business name registration and receipt for proof of payment online. Once processed, you receive a certificate of registration. A business names cost Shs24,000.”

 Mr Mukasa says URSB issues a name reservation form which gives you options of three names, within hours they will tell you if the name exists or not. Once your name is cleared and reserved, you will be given 30 days to have the company registered.

“Sometimes you could be having challenges that you might not be able to register that company in 30 days, the registrar can given another 30 days on request and once registered the Registrar will decline any other name that resembles yours,” he says.

Mr Mukasa further says within the 60 days of reservation, no company can be given a name similar to yours.

URSB agrees that similar names cannot be registered due to the fact that they will be flagged off by the system.

“There might be circumstances when one or two words seem or sound alike but when the area of work is completely different,” Ms Nangobi says.

“However, the Business Name Act provisions on registration are different from the Trademark Act Provisions. There might be circumstances where a business name might be rejected on grounds of similarity to existing names and it passes and is registered as a trademark.”

Challenge

Mr Mukasa says the conflicts come in when one registers with URSB and does not register with the Trademarks Registrar.

“If you are going to register a company name, with URSB, it is also good to go to the Trademark’s Registrar. What happens in Uganda is companies don’t go to the Trademark Registrar,” he says

It should be noted that the Registrar of Companies and the Registrar of Trademarks are two different entities and registration details at one are not captured on the other.

“A trademark gives the authority to use that name as a business; for instance, MTN Uganda has a trademark and a logo and nobody can trade or create such a name, “Mr Mukasa says.

He adds, “Before you do business, you have to register your name with the Registrar of Companies and Registrar of Trademarks, conduct a search of the Registrar of Trademarks to avoid litigation.”