By GLENN SMITH
Did you know there is a Government department in New Zealand where the words "and", "the", "number", "company" and even "New Zealand" don't exist?
The Ministry of Economic Development (Companies Office), which administers the incorporation of companies in New Zealand, does not take account of these words when considering
a company name.
When a business owner in New Zealand wishes to incorporate their company so that they can register with the IRD, open a bank account and begin trading, they must first gain permission from the ministry to incorporate a particular company name.
A name that is too close to that of an existing company will be rejected to protect the interests of the company that used the name first.
As words like "the" and "company" are not taken into consideration by the ministry, The Auckland Home and Cooking Company Ltd would be treated as exactly the same name as "Auckland Home Cooking Ltd".
There are also other reasons the ministry rejects names.
Take the example of a man named John Royal, who is about to go into business as an earthworks contractor specialising in building earth banks and dams to stop flooding in low areas.
John wants to call his company "Royal Earth Dam and Bank Contractors Ltd".
A bit of a mouthful, but a reasonable choice, right?
Not according to the ministry. He is unlikely to be allowed to register that company name.
Why? After all, his choice simply states his name and the type of work he will be undertaking, doesn't it?
The use of the words "royal" and "bank" would cause the problem.
These are two of the words that are controlled carefully by the ministry to ensure only companies who can legitimately claim the right to be called "Royal XYZ Ltd" or "ABC Bank Ltd" are allowed that privilege.
Certain trademarked names and words that might cause offence will not generally be allowed.
It can be a bit confusing for people who are not used to the rules and regulations governing the use of company names in New Zealand.
It always pays to check with an expert.
There are certain ways of presenting words in a name which usually means that everybody gets to use one they like.
* For copies of the previous articles in this series, please email the author at formations@homebizbuzz.co.nz
* Glenn Smith runs a company formation business and is the HomebizBuzz company formations expert.
* HomebizBuzz offers a free company name check service.
