What’s in a Name

Actually, there’s a lot. If you’re forming a company in Brazil, one of the first things you must decide is the name of your new business. While you’ll ultimately choose the name, there are some restrictions to keep in mind.

The Brazilian Civil Code requires that company names include either a reference to the business purpose or activities of the company (denominação) or the names of the company’s owners (firma).

Most Brazilian entities opt to include some description of their business purpose. Imagine you’re an import company. Then, in your name, you might include the word importação. If you sell goods, your name may refer to produtos or even specify the type of products you sell.

Every once in a while you’ll find a company registered to do business that doesn’t appear to have met the requirements. Why? Well, state trade boards are responsible for registering companies and sometimes they simply overlook the requirement.

You’ll also want to make sure you’re correctly describing your business entity. For example, a limitada must include either Ltda or Limitada at the end of the name. A limitada unipessoal (single owner limitada), however, cannot include the word unipessoal at the end.

It’s tricky. Just make sure that whoever is helping you with your name knows what’s allowed and what’s not allowed. The worst that can happen is that your filing is denied and you have to file again. But if you’re in a rush, you might as well just do it right the first time.