To Name or Not to Name Your Business? That Is the Question We Get at AMA.

Written by Robert Tuazon, AMA Business Registry Agent

When entrepreneurs come to us to register their business, one of the most frequent questions we get asked is: to name or not to name?

To sum up—it all depends on your needs.

Numbered companies don't require a descriptive name or unique name. The corporate registry simply assigns numbers as the first part of the name. Then, "Alberta" always forms the second part of the name. The last part of the name is a legal element. This is a crucial part of your company's name, as it indicates the type of legal entity your company is. The legal element could be any of the following: limited (LTD.), Incorporated (INC.) Corporation, or corp. It could also be ULC or a Limited Liability Corporation. It could also be a French equivalent, such as Ltee, Limited, or Corporation. Each of these legal elements has its own implications and requirements, so it's important to choose the one that best suits your business needs.

The Name Makes Your Business Unique

On the other hand, named companies consist of a distinctive word or location that makes the corporation unique from others. The process of choosing a name for a company involves several steps. First, you need to select a unique and distinctive word or location that is not already in use by another corporation. A descriptive element is also needed to describe what the company is or what it does. Finally, like a numbered corporation, it must have one of the legal elements.

Numbered companies are cheaper as they do not need a Newly Upgraded Automated Name Search or NUANS. NUANS report lists names and tradenames similar to what you want or proposed vs. what already exists.

Both named and numbered, they legally offer the same liability, buying and selling assets, requirements to maintain, and tax advantages.

Whether numbered or named, they are still being monitored and tracked by the government to ensure they abide by rules and regulations. This includes regular audits, compliance checks, and the enforcement of laws related to business operations and taxation.

Want Anonymity? Choose a Numbered Company.

Some prefer numbered companies as they offer more anonymity by not having a recognizable name. Some business owners prefer to do numbered companies and then operate as Tradename, which they could use for the public to identify.

Some business owners prefer named companies as they offer public recognition, branding by the owner or stakeholder, or even potential protection for their trademark.

But the good news is AMA has recently created a business package that helps to open new named corporations or any new entrepreneurs wanting to incorporate. This comprehensive package includes a Business Account for managing finances, a NUANS report for ensuring the chosen name is unique, a Legal Ease kit for understanding legal requirements, a Minute Book for keeping corporate records, and the first filing of an Annual Return. Plus, with Business Specialists ready to help and answer questions, you'll have the support you need to navigate the process of incorporation. This package is designed to make the process of incorporating as smooth and hassle-free as possible so you can focus on growing your business.

AMA offers all the registry services you need to start, grow, and protect your small business. To learn more, visit ama.ab.ca/registries/business or book an appointment with a dedicated Business Registry Specialist today.