It can be difficult for start-ups to find the right name. A striking name that fits the company’s activity can be attractive for future clients and partners. It may also happen that the business with the more ingenious name will be found in the market sooner even though it otherwise carries out the same activity in a similar quality as another company with a less interesting name. Therefore, the issue of choosing a name cannot be neglected in any way.
Finding a good name is not an easy task, as it is in vain for the company to come across the perfect name if it is already occupied or cannot be used in any other way.
The following is an overview of the main requirements that a company should pay attention to when choosing a name:
- The company name consists of the key word and the name of the company form (eg kft., bt., zrt.). The key word can also be a foreign language expression, abbreviation and mosaic word, which must be indicated in latin letters (e.g. Opus Simplex, TruTax). In addition to the key word, the company name may contain only Hungarian words, according to the rules of Hungarian spelling. Abbreviation in the company name is only possible in the case of the key word or when defining the company form.
- The company name must be different from the name of another previously registered company. The discrepancy must be only 3 characters, which in case law is a 3-letter discrepancy.
Businesses can otherwise check this online. All they must do here is enter the name they have chosen and if the search engine does not throw out a hit, they will presumably not have registered a company with the given name yet. It is important, however, that in the case of a three-letter search, the company register does not return a result. In this case, you may want to add company forms to your search, and then the three-letter company names will be verifiable.
- The company name must not give the appearance of being misleading, as regards the scope of the company’s activities and the form of company chosen. The name must therefore reflect in some way the future activities of the company.
- The company name must be clearly different from the official or colloquial names of public authorities and administrative bodies.
Beyond the considerations mentioned above, company name should meet several additional criteria, so it is worth taking some time to familiarize yourself with the rules before making a final decision so that the Registry Court does not refuse registration request.