Corporate Name or Trade Name

Sometimes we read words or phrases that are familiar to us because we’ve heard them before but we don’t have a clear and certain idea of their meaning.

I want to share with you the denomination and corporate name extracted from the General Commercial Companies Law and the General Cooperative Companies Law.

Definition of Denomination

Article 88.- The denomination will be freely formed, but it will be different from that of any other company and when used, it will always be followed by the words “Sociedad Anónima” or its abbreviation “S.A.”

Definition of Corporate Name

Article 27.- The corporate name will be formed with the name of one or more partners, and when the names of all partners do not appear, the words “and company” or equivalent will be added.

Application of Denomination or Corporate Name

Article 25.- A partnership is one that exists under a corporate name and in which all partners are subsidiarily, unlimitedly, and jointly liable for the obligations of the company.

Article 51.- A limited partnership is one that exists under a corporate name and consists of one or more general partners who are subsidiarily, unlimitedly, and jointly liable for the obligations of the company, and one or more limited partners who are only obligated to pay their contributions.

Article 210.- A limited partnership by shares may exist under a corporate name, which will be formed with the names of one or more general partners followed by the words “and company” or equivalent, when the names of all partners do not appear. The corporate name or denomination, if applicable, will be followed by the words “Sociedad en Comandita por Acciones” or its abbreviation “S. en C. por A.”

Article 59.- A limited liability company will exist under a denomination or a corporate name that will be formed with the name of one or more partners. The denomination or corporate name will immediately be followed by the words “Sociedad de Responsabilidad Limitada” or its abbreviation “S. de R. L.” The omission of this requirement will subject the partners to the liability established in article 25.

Article 10.- Companies that pretend to be cooperative companies or improperly use denominational references to them will be null and void and subject to the sanctions established by the respective laws. (LGSC)

Article 16.- The constitutive bases of cooperative companies will contain:

I.- Denomination and registered office;

Article 261.- The denomination will be freely formed, but different from that of any other company and always followed by the words “Sociedad por Acciones Simplificada” or its abbreviation “S.A.S.”.

Sumarazing: