Starting Out: Choosing The Best Company Name
Picking out the right name for your company may seem like a small component in starting out an online business or starting your own company, but in fact, it is incredibly important. A name can be considered the first impression that your potential clients and customers will have towards your company. And it is essential in making that first impression a positive one.
Selecting the best name for your company can be a complicated and troubling decision to make, as well as confusing. But we are here to help. This article will supply you some tips and tricks into finding that perfect name!
Check out our other articles under SSM:
How To Register A Company in Malaysia With SSM: Step By Step Guide 2019
How To Register a Company in Malaysia with Suruhanjaya Syarikat Malaysia (SSM) as a Foreigner
SSM Registration: The Types of Businesses You Can Register With SSM
The Difference in Name Terms for Business
Not everyone is accustomed to business types and terms, from business names, legal names, trade names and company names, all of it can be very confusing. Understanding these terms are necessary, as they have specific legal meanings used in different instances.
Business Name: A business name is the official name of a person or entity that owns the company. It is also known as a company name or legal name of a business, as they are usually used for legal documentation. A business name in Malaysia requires it to end with legal abbreviations such as ‘Sdn Bhd’ or ‘Enterprise’ at the end of the name, that depends on the type of business entity it is. An example is Kucing Palace Stores Enterprise.
Trade Name: Trade names can be considered as the informal name of a business. They are typically used for advertising and marketing purposes. Trade names for a business or company are not mandatory and the company has the choice to go with their official name instead of a trademark name. Usually, trade names and business names are very similar to each other to avoid confusion. For example, Kucing Palace Stores Enterprise has the trade name of Kucing Palace.
The Essential Elements in Picking the Right Company Name
Search for Company Names
The name of your company has to be relevant to the type of business you are conducting. This is essential as you need to ensure your clients and customers to instantly know what your business is promoting or selling, and to avoid any misunderstandings. If your business is a restaurant, you should name it based on that like Makan Place Restaurant.
Having a one of a kind name can really help out your business to stand amongst the rest, which can be favourable for your company. However, ensure that the company name is not too unusual in the spelling and pronunciation as this can be troubling for your clients and customers when searching for your company.
A simple name is ideal because it is easy on the tongue and easier to be remembered. The shorter the name, the better. And the maximum limit for the length of a name should be around two syllables. It is also better to pick a name that is closer to the first letter of the alphabet as many algorithms and directory listings work alphabetically. Uncommon spellings and pronunciation should be avoided due to the confusion it can cause.
Before you officially decided on the name of the company, it is ideal to check whether that name has been registered before. It would be a shame to select a name and then realize it is unavailable. With SSM company registration made more simpler, searching company names is now faster and easier. Be sure to do a fast check up on domain name availabilities as well.
Find out more on the SSM Registration process!
You would not want a boring name for your company. It is good if the name is catchy and fun because it can be a good lasting impression of your company to the public. Be creative and play around with words or even coin out new names, as sometimes it can be more meaningful than existing words.
Malaysia being a multicultural country, it has many languages from Malay, English, Mandrin (or other chinese languages), and Tamil. In starting your business, be sure to find any suitable name any of the languages. But be sure to check the guidelines on naming, as names that contains words other than the Malay or English Languages, the meaning of such words must be given.
Malaysian Company Naming Guidelines
Suruhanjaya Syarikat Malaysia (SSM) or also known as the Companies Commission of Malaysia has set some guidelines for naming a company in Malaysia.
SSM Name Search Guidelines
- Names shall use correct language and spelling;
- If a name contains words other than the Malay or English Languages, the meaning of such words must be given;
- Names which are not blasphemous or likely to be offensive to members of the public;
- Names which do not resemble elements of religion;
- Certain names which are not too general, for example, “Attempt Sdn. Bhd.” or “Beautiful Sdn. Bhd.”
- The usage of individual names shall be from the names of the directors to be named in the Memorandum or Articles of Association. However, individual names can be considered if such names are from the names of immediate family members of the director or promoter, for example, the names of children, father, wife, grandfather or grandmother. Proof of family relationship must be given. If the name of the company is from the individual name of a group of companies in existence, a consent letter must be obtained from the group of companies which have such individual names;
- State the meaning of the created words;
- The company name is not an acronym that can be used to mislead as to the name of a multi-national company such as PNB, ICI, IBM;
To read more on the company naming guidelines, you can read it here.
Steps to Generate Company Names
Step 1: Conduct Brainstorming sessions
Conduct a brainstorming session involving those who are key decision-makers of the company, as they usually have the best interest. The fewer the number of people involved, the better. Too many people involved can really complicate things further.
Step 2: Sample potential customers
It is good to inquire and try out names potential customers through conducting surveys. It would even be better if you already have a dedicated audience and customers. You are able to ask them questions about the names and impressions of the chosen names.
Step 3: Outsourcing
If finding the right name is still too difficult. You can get and acquire professional help. Although, you may need to spend some money for their services. There are many dedicated firms on naming and branding that can help you in finding a name, such as A Hundred Monkeys and Igor.
Step 4: Try Company Name Generators
If you are still unable to find a suitable name, you can always try out online company name generators. A few would be Shopify Business Name Generator, Namemesh.com, and Naminum.com.
The Benefits of a Good Company Name
- Customer Recognition
If you have successfully created a good and lasting impression to your customers and clients, they would likely come again to use your services or products, in the meantime recognising your brand. Consumers are more likely to choose a brand that they recognise over other brands that they find unfamiliar.
- Increasing Credibility
With more customer recognition towards your company and brand, it can help build up credibility and help you gain more customers in the future. In the end, boosting up your sales. Credibility is not only earned to customers but to the industry, you are in as well as competitors.
- Personal touch
If your company name has your name on it, can add a personal touch to your business. With many other different companies from vastly different industries, you set out a company with your name on it, is like setting out yourself out into the world.
Things to Remember in Registering Your Company Name
Search Registered Company Names
Before actually starting on picking a company name, make sure to search registered company names online and at SSM’s database. It would be a shame to pick out a name to find out it has been taken.
Check Registration Company Names
After you have registered, be sure to check whether your company name has been approved and registered properly.
Once you have decided on a company name, its time to get the ball rolling with all the necessities for your business! You can start to learn how to register a company in Malaysia as it can be confusing for some. Picking a company name is just the start of it all. You will have to start with advertising and one great way to get started is with SEO, or even own a well-designed website.