How to Choose a Great Business Name
During Business Registration with IPA, many people do not know how to choose a great business name that, not only complies with IPA Business Name Act but, can helps market your brand well in the long run.
This article also clears the confusions over the difference between a Company Registration and Business Registration.
Apply online for IPA Business Registration.
Please, take note of the following points when choosing a business name for registration.
Business Registration Vs Company Registration
Business Registration is for Startups where you can, either act as a sole owner or have a few more people as co-owners.
Your Business Name can be converted to a Company Name later especially, when your business grows where you can have directors and shareholders.
Read more about Company Registration.
The IPA policy on Business Name does not allow the use of names such as; Limited, Ltd, Enterprise, Investment, Holdings, etc. They’re reserved only for Company Registrations.
Also, note that the word “Development” and “Inc” are reserved for Association Registration and therefore, must not be used in Business Registration.
Fees for Business Registration & Company Registration
The fee for Business Registrations is K300 while Company Registration is K650.
The fee for Business Registration covers; IPA Registration, TIN Registration and Bank Account Opening. Read more about our Business Startup Packages.
The fee for Company Registration also covers TIN and Bank Account Opening. See image below;
Basic Business Startup Package
- Register your Business with IPA now by applying from this website.
- Register your Company with IPA now by downloading the registration forms 1, 2, 3, 4 & 6 from our download section.
Choosing the Best Business Name
For your Business Registration, you’ll have to choose a unique name – one that has never been taken up already by other people.
Your business name must also include the business activity or type in the name itself.
For example; if you have a PMV Business and want to use the word KUMUL; the word KUMUL itself is NOT a good business name. That is because, it is not unique and also it does not include the business type.
It is better to use; KUMUL PMV SERVICES or KUMUL TRANSPORT.
One Person Registering Several Businesses
Your business name should include only one business activity per registration. For example; “KUMUL TRANSPORT & LIQUOR SHOP” is not proper. You cannot have two or more business types registered under one registration.
You can instead, register a separate/different business name for your liquor shop.
It is OK to have several business names under one person. If you have several retail or trading businesses, you can register it as “KUMUL TRADING” so any trading or retail activities can be conducted using the Trading Name.
However, companies can have different business types with one company name. That is possible. For example; if you register KUMUL INVESTMENT LIMITED, you can have all your business activities done under it.
Summary
Business Registration is simple.
However, many people tend to make mistakes and this can cause unnecessary delays in their business registrations or their registration end up being declined by IPA. However, you can resubmit after making necessary changes.
Many people simply do not know how to choose a great business name or are too ignorant to read vital information like this article before registering their businesses.
Take-away Message
In summary, your chosen Business Name should have the following;
i). unique
ii). includes the business activity
iii). has only one business activity per registration.
iv). shouldn’t include words such as; Investment, Limited, Ltd, Holdings, Enterprises, Development, etc.
This is to comply with IPA policies and guidelines so that your business registration is not delayed unnecessarily or questioned.
We hope this information is helpful and clarifies the difference between Business Registration and Company Registration.
We will provide more tips and information on Business Startup, Branding, Marketing, Financing, etc.
Apply now for IPA Business Registration.
Basic Business Startup Package
Please, contact us if you require further assistance.
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