Adding a Trade Name/DBA to an Existing Corporation
Adding a Trade Name or Doing Business As (DBA) to an existing corporation involves legally registering a secondary name under which the corporation can do business. example: Register a Trade Name for Walmart is a good example of a trade name. Walmart’s trade name is just Walmart—that’s the name it uses on its advertising and website, and what most people refer to it as
What is a Trade Name?
Before diving into the process, let’s answer a fundamental question: what is a trade name? A trade name, also known as a business name or operating name, is the name a corporation uses to conduct business that differs from its registered legal name. For example, if your corporation is named “XYZ Technologies Inc.” but you want to brand yourself as “Tech Solutions,” “Tech Solutions” would be your trade name.
Unlike a corporation’s legal name, a trade name is not subject to the same rigorous rules and can offer more flexibility for branding purposes.
Benefits of Adding a Trade Name
- Legal Recognition: The trade name/DBA allows the corporation to operate under a different name while still maintaining its legal status.
- Expansion: Allows the company to grow into new markets or provide more services under a different brand.
- Customer Trust: Having a registered trade name/DBA can increase customer trust and credibility. It allows customers to easily identify and differentiate the corporation’s various business operations or brands.
- Marketing and Branding Opportunities: With a trade name/DBA, corporations can carry forward targeted marketing strategies, develop branding campaigns, and create specific messaging for different product lines or services.
Steps to Add a Trade Name to an Existing Corporation in Ontario
Below are steps for the registration of a trade name in Ontario for your corporation.
Step 1: Understanding the regulations governing the trade name.
First, one needs to know that in Ontario, the trade names are regulated under the Business Names Act. Trade names are different from the legal corporate names since no exclusive rights or protections will be offered against any name. That means it might be used by some other business as well.
Step 2: Search of Name
It is not a necessity but a good practice to conduct a name search in order to avoid conflicts with any already existing businesses. You may use the business name registration Ontario database to check the availability of your desired business name. You can also use the NUANS Canada portal to conduct a business name search.
Step 3: Registration of Trade Name
You can register a trade name in Ontario using the Online Business Registry. Here’s how:
Online Application/Registration:
1) Go to the Online Business Registry.
2) Select the option to register a business name under an existing corporation.
3) Complete the online application form, by providing the following information:
– Legal name and number of your corporation.
– The proposed trade name.
– Business address and contact details.
4) Pay the applicable fee with about $60 for online registration.
In-Person or Mail Registration
If you don’t want to register online, you can also do it in person or by post. You need to fill out a Form 1 “Registration of a Business Name” and submit it with the relevant fee.
Key Considerations for Trade Name Registration
1) Trade Name vs. Legal Name
Your trade name must be different from your corporation’s legal name, so you are not confused with your corporation. However, it does not need to be different from other trade names in Ontario.
2) Renewal Requirements
A trade name registration is valid for a period of five years in Ontario. Upon expiration, after five years, a trade name should be renewed to remain valid. Keep a track of your renewal date so that the business operation may not be disrupted.
3) Tax and Compliance
Filing under a trade name does not affect the taxing requirements of your corporation. You must still file all taxes and reports under your legal corporate name.
FAQs About Trade Names
1) What is the difference between a brand name and a trade name?
A brand name would be the name of the product or service with which such product or service is merchandised, typically having to do with branding and consumer recognition. A trade name is the operating name under which business is conducted instead of its legal name.
2) How do I file a trade name?
To register a trade name, you may do this online through Online Business Registry or in-person at the ServiceOntario location nearest you. Apply and pay any required fee for your name registration. Be sure to renew every five years.
3) How to register a trade name in Ontario?
The most accessible way of registering a trade name in Ontario is via the Online Business Registry portal. Simply fill out the forms, give all the required information, and pay the registration fee.
4) Why Add A Trade Name/DBA?
By adding a trade name/DBA, the corporation can operate under a different name for specific business activities or ventures. It can help in branding, marketing, and expanding into new markets while maintaining the legal status of the corporation.
5) Is Adding A Trade Name/DBA Mandatory?
Although it’s not always required, it can be beneficial for branding, especially if the company wishes to differentiate various product lines, services, or business operations.
6) Can I Use The Trade Name/DBA Immediately After Filing?
It’s important to wait until you receive official approval and documentation before using the trade name/DBA for business activities.
7) Who Can File For A Trade Name/DBA?
Typically, officers, directors, or authorized representatives of the corporation are eligible to file for a register a trade name/DBA.
8) Documents Customer Receives
1. Certificate of Assumed Name: This document proves the legal recognition of the trade name/DBA.
2. Filing Receipt: Acknowledges payment and submission of the application.
9) Why Is OBR The Best Choice?
• We represent you with Industry Canada.
• All your paperwork is managed in one place for simplicity.
• Our team has over 20 years of experience in this field.
• We help you find a suitable business name at no cost.
• Our specialists make sure your filings meet regulatory standards.
• Get immediate assistance from our team whenever you need it.
Final Thoughts
Adding a trade name to your corporation is a straightforward process that can significantly enhance your business’s branding and flexibility. Whether you want to expand into new markets or create a unique identity, registering a trade name in Ontario is a practical solution. Make sure to follow the steps outlined above and leverage resources like register a trade name in Ontario and register business name Canada to streamline the process.
By understanding the nuances of Ontario trade name registration, you can confidently grow your business while staying compliant with provincial regulations. Ready to take the next step? Start your trade name registration today!
