How to choose your company's business name

The business name is the company’s official name, the one entered in the commercial register. Choosing it well is not just marketing: it is a decision governed by precise legal rules. A non-compliant name gets the registration rejected and wastes time. Here is how to go about it.

What the law says

In Switzerland, the formation of a business name is governed by the Code of Obligations. There are three fundamental principles:

• truthfulness: the name must not mislead as to the type, activity or size of the business;
• absence of deception and no conflict with the public interest;
• sufficient distinctiveness from business names already registered.

For corporations (GmbH and AG) there is broad freedom of choice: you can use invented names, personal names, thematic indications or a combination. There is greater freedom than for a sole proprietorship.

The legal-form suffix is mandatory

The business name must indicate the legal form. For the GmbH the suffix “GmbH” is used (Sagl in Italian, Sàrl in French); for the AG the suffix “AG” is used (SA in French). The suffix is an integral part of the official name and cannot be omitted.

This indication has a purpose: anyone dealing with the company must know immediately that they are facing a company with liability limited to its capital, not a sole proprietorship.

Check availability before falling in love with the name

The most important and most neglected step is checking that the name is free. The business name of a GmbH or AG enjoys protection throughout Swiss territory: it cannot be identical to one already registered, and it must be sufficiently distinct.

Before proceeding:

1. consult the central business-name index (Zefix) to see whether the name is already in use;
2. check variants that are too similar, not just identical ones;
3. verify the availability of the internet domain and the corresponding social media accounts;
4. consider a registered-trademark search, so as not to infringe others’ rights.

Discovering too late that the name is taken means redoing articles of association, business cards and communication materials.

Distinctive name or descriptive name?

Two opposing strategies, both legitimate:

• an invented name (distinctive) is easier to protect and to turn into a trademark, but requires more investment to become recognised;
• a descriptive name (evoking the activity) immediately communicates what you do, but is harder to protect, because generic terms cannot be monopolised.

Many companies combine the two: a distinctive element plus a reference to the activity.

Mistakes to avoid

• Regulated terms: words such as “bank”, “insurance” or references to an official/state character are subject to restrictions or authorisations.
• Geographical names used in a way that is misleading about the actual seat or activity.
• Similarities to well-known trademarks, which expose you to challenges.
• A name that is too long or difficult, impractical in the company’s day-to-day life.

Change the name later? You can, but it costs

The business name can be changed later, but it requires a shareholders’ resolution, a deed and a new registration, plus redoing all communication materials. Better to choose well from the start.

How we help you

We check the availability and compliance of the business name, flag the risks (namesakes, trademarks, regulated terms) and enter it correctly in the deed of incorporation — with incorporation from CHF 0 (combined with a 12-month accounting mandate) and terms set out in plain language. Check your company’s name.