How to Choose a Legally Sound Company Name

The company name often feels like the first real step towards your own business. Suddenly the idea has a name, a direction and a face. It is all the more annoying when that very name later fails at the register court or causes trademark problems. That is why it should not only sound good but also work legally.

At a glance

A company name should be distinctive, not misleading and appropriate to the chosen legal form. Only then does it have a good chance of being considered registrable. Those who know the rules early save themselves rejections and costly name changes. The five most common mistakes when choosing a name:

A name that is too general or purely descriptive.
A confusing similarity to existing companies.
No trademark search.
Misleading additions such as “Institut”, “Akademie” or “Zentrum”.
No prior consultation with the Chamber of Industry and Commerce (IHK).

The good news: most of these problems can be avoided if the name is checked early, before money flows into a logo, domain or public presence. A later change is laborious and often costs twice.

If you already have a specific name in mind, a notarial assessment can help avoid unnecessary loops before the register court.

Why the company name is more than a creative idea

Many founders quickly become attached to a name. It may already be in the notebook, on a first website or in the draft logo. That is exactly why it is so frustrating when it later turns out that the name does not hold up legally. Under German law, the company name fulfils an identification function: it clearly identifies your company and protects against confusion with other market participants.

A term first: legally, the “Firma” is the name under which a merchant or company appears in the commercial register. In everyday life, most people simply say company name, meaning the same thing. In this article we stick to the more understandable term company name.

A viable name makes later trademark applications easier, ensures a reliable public image and reduces the risk of a costly name change. That is why a structured check is always worthwhile before the final decision.

Typical problems with company names

So that you know what matters, here are the pitfalls that occur most frequently in practice. They can be roughly divided into three groups:

Problems with registration: A name that is too general, purely descriptive or misleading, or an incorrect legal form suffix, leads the register court to refuse registration. What counts here is explained in the section on legal requirements.

Trademark problems: A name can be permissible under commercial law and still infringe an existing trademark. The consequences are warning letters, cease-and-desist claims and, in the worst case, expensive rebranding. More on this in the section on trademark law.

Practical and digital problems: The matching domain or the names on social networks are already taken, or the name is hard to pronounce and remember. This slows down your public presence. More on this in the section on domain and social media.

The pattern behind this is almost always the same: the problems arise not from the name itself, but from the fact that it is checked too late. It is particularly annoying when the logo, website, domain or even the articles of association have already been prepared and the name then does not hold up. Those who go through the following sections beforehand catch most of these problems in time.

Legal requirements for the company name

For a company name to be registered, it must comply with the provisions of the German Commercial Code (HGB). These provisions serve above all to ensure clear recognisability and protection against misleading names.

Distinctiveness

A company name must clearly stand out from existing companies. Purely generic terms such as “Bäckerei” (bakery), “Pflegedienst” (care service) or “IT-Service” are not sufficient.

Examples of sufficient distinctiveness: “Nordlicht IT-Consulting GmbH” instead of “IT-Consulting GmbH”, or “Berliner Feinkost Manufaktur UG” instead of “Feinkost UG”.

Common misunderstanding
Distinctiveness does not necessarily mean originality. What matters is that the company name remains clearly attributable and distinguishable from existing companies.

Prohibition of misleading names

The name must not create an impression that does not correspond to reality. Designations that suggest qualifications, activities or a company size that do not exist are not permitted. “Deutsche Akademie für Medizin GmbH” without medical activity or “Institut für Sicherheitswissenschaften UG” without scientific authority typically fail.

Mandatory components per legal form

Corporations must include their legal form in full and correctly in the name:

GmbH with the suffix “GmbH”.
UG with the suffix “UG (haftungsbeschränkt)”.
AG with the suffix “AG”.

Special features by legal form

GbR: Personal, descriptive or fantasy names are possible. The suffix “GbR” is not mandatory but customary, and the name should indicate that several persons are acting together.

OHG and KG: Both must carry the legal form suffix. The name may consist of partner names or of fantasy and descriptive terms.

GmbH & Co. KG: Because the general partner is a GmbH, this must be clearly recognisable in the name, i.e. “… GmbH & Co. KG”.

Sole traders: They use the suffixes “e. K.”, “e. Kfm.” or “e. Kfr.”, and the name must be distinctive.

Important: The register court rejects names whose legal form suffix does not match the actual corporate structure. Care from the outset pays off here.

Checking the company name: IHK and commercial register

Before you commit, you should check two sources. The Chamber of Industry and Commerce (IHK) offers a voluntary but highly recommended preliminary check. It follows the standards of the register court and gives you an early assessment of whether the name could be registrable.

At the same time, you can search the commercial register for identical or similar company names.

For formations in Berlin, IHK Berlin offers a digital preliminary check of your desired name: IHK Berlin, check company name (in German).

Good to know: Positive feedback from the IHK provides important guidance but does not replace the decision of the register court. If the assessment is negative, the name should be revised again before filing.

The most common reasons for rejection are lack of distinctiveness, purely descriptive activity terms, risk of confusion with existing companies, misleading additions and impermissible geographical emphasis.

Trademark law: company name is not the same as trademark

A common and expensive mistake: even if a name is permissible under commercial law, this does not mean trademark protection. The commercial register and the trademark register operate independently of each other. Registration in the commercial register primarily protects the company name as a business designation. It does not replace a trademark search or a trademark application.

Company name: the legal designation of your company in the commercial register.
Trademark: the protection of your goods and services under trademark law.

You can carry out an initial trademark search in the register of the German Patent and Trade Mark Office: DPMAregister. For EU-wide protection, a search at the EUIPO is also advisable, and for international protection at the WIPO.

Practical tip: A name registered in the commercial register does not automatically protect you from trademark conflicts. Anyone who wants to build a brand should research before committing rather than risk a warning letter later.

Do not forget domain and social media

A modern company needs a coherent digital presence. In practice, a three-step check has proven useful:

Check the commercial register for identical or similar company names.
Check the trademark registers at DPMA, EUIPO and WIPO for conflicts.
Check the availability of the domain and matching user names on social networks.

You can check domain availability with any domain provider. If the domain and company name do not match, a short, concise and brandable variant is usually the better choice in the long term.

Examples from practice

How this looks in individual industries makes the rules more tangible:

Catering: Terms such as “Manufaktur”, “Feinkosthaus” or geographical designations are permissible as long as they correspond to the actual circumstances and are not misleading.

Coaching and consulting: Here, designations such as “Institut”, “Akademie”, “Klinik” or “Zentrum” can become problematic if they suggest a particular size, a scientific institution, proximity to the state or a professional authority that does not actually exist.

IT and software: Fantasy names and new word combinations are generally permissible, but should be checked under trademark law, because many names are already protected in the technology sector.

Names like these can cause problems in practice: “Berlin Consulting GmbH” because of a purely descriptive industry term, “Premium Pflege Akademie UG” because of the academy without corresponding authority, or “Mediklinik24 GmbH” because of a medical claim without actual care provision. Whether a name is ultimately rejected is always decided on a case-by-case basis.

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Clarify the next step of your company formation with legal certainty

Book an appointment and discuss your questions directly with the notary, often within a few working days.

Frequently asked questions about the company name

Does the company name have to be protected?

An entry in the commercial register does not replace trademark protection. A trademark application offers extended protection and can help to take action against identical or similar names for comparable services.

Is the IHK check sufficient?

It is very helpful for an initial assessment under commercial law. However, the register court decides with binding effect. Trademark conflicts are not excluded by the IHK check anyway; a search at DPMA, EUIPO and WIPO is required for that.

What does a trademark application cost?

The fees for a national trademark application start at a few hundred euros and depend, among other things, on the number of classes. The current amounts are published by the DPMA in its fee schedule. International applications via EUIPO or WIPO are more expensive.

Can I change my company name later?

A change of company name is possible, but involves administrative effort and possible rebranding costs. A careful check in advance therefore pays off.

May I use geographical terms?

Yes, as long as they are accurate and not misleading. “Berliner Manufaktur GmbH” may be permissible, while “Deutsche Forschungsakademie GmbH” without corresponding activity is regularly objected to.

What happens if my company name is confusingly similar?

Then cease-and-desist claims, warning letters and possibly claims for damages are looming. A thorough check in advance protects against these risks.

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Notarial support in choosing a company name

When forming a GmbH, UG or another company subject to registration, the notary checks whether the planned company name meets the requirements of register law. An early check can avoid queries from the register court and delays in registration.

However, the notarial check does not replace a trademark search or trademark application. Specialised lawyers or patent attorneys should be consulted for that.