Choosing Your Business Name In Kenya: 13 Dos And Don'ts

Coming up with a business idea involves a lot of steps before executing those ideas to propel a business to the top, and one of them includes choosing a name for it.

There's nothing as fulfilling as choosing a unique name for your business as this helps you stand out from the rest. Most opt for business names that line with the vision for their small businesses, sole proprietorships, limited companies etc.

However, Kenyans rush to choose a suitable name for a business and end up making several mistakes along the way which has detrimental effects on its registration.

A customer uses a PDQ machine in Kenya. /MONEY254

"A business name is more than just words, there are many factors that play into creating an acceptable name in accordance with the Companies Act 2015," states the Business Registration Service (BRS).

The Companies Act 2015 indicates that the registrar may not register a company by a name that consists of or includes anything that is not permitted by the regulations.

When starting a business, choosing the right name is critical as this is the first thing customers will recognise. The name should tell the story of your brand so customers know what you do from the naked eye.

It should be easy to spell, pronounce and sound good and not be too long. You should avoid using names similar to your competitors' as this generates confusion.

Another thing is before you decide on a business name, you should do a thorough search for it on the internet to make sure that no one else has taken it. When in doubt, consult with your potential customers to decide on and rank name ideas.

"Did you know that the name Viral Tea was derived from a friend of mine whom I pitched to when she suggested that I start a digital platform? The 'Viral' was mine but the 'Tea' was her suggestion owing to the common lingo used by the likes of Edgar Obare," digital journalist Marvin Chege, who is Viral Tea's founder and managing editor, reveals.

While choosing a business name, avoid starting with the word 'Kenya' as this is only reserved for government-owned entities such as Kenya Airways, Kenya Broadcasting Corporation (KBC), Kenya Ports Authority (KPA), Kenya National Highways Authority (KeNHA) among others.

A business owner needs the registrar's approval before using a name that gives the impression that the company is connected with a State organ, a county government, or any public authority, as stated in the Companies Act 2015.

Dos and Don'ts When Choosing a Business Name in Kenya

Below are some rules Kenyans should follow when choosing a business:

1. A company name may not contain more than 160 characters.
2. The name of a firm that is a private company must end with "Limited" or "Ltd".
3. The name of a limited company that is a public company incorporated under the 2015 Act must end with "plc" or "Public Limited Company".
4. Offensive or abusive words are not allowed either. Offensive words in vernacular (mother tongue) are not allowed either.
5. The business name should not be identical to an already reserved name or the name of an already registered company, business name, LLP, or partnership. (Unless the existing company, business, LLP or partnership is part of the same group as the company and consents in writing to the use of the proposed name).
6. Do not choose a politically affiliated business name.
7. A business name containing the words "cooperative", "society", or "trade union" is not allowed.
8. The name should not be the same as or similar to that of a registered trademark. 
9. Numbers may be used in any part of a business name.
10. A full stop, comma, colon, semi-colon or hyphen may be used apostrophe.
11. These punctuation marks may be used; brackets/parenthesis (), an exclamation mark (!), Guillemet (<<<>>), inverted comma, question mark, solidus (/)
12. During business name registration, the following signs and symbols can only be used if they are not one of the first three letters of a company name: *; =; #; %
13. The name should not start with the words "Kenya" because it is reserved for government-owned entities.

An image of a bundle of notes. /FILE