A Canada Name Search or Canada Business Name Search or Federal Nuans Name Search, as it is sometimes called, is required to incorporate a federal company in Canada.
The main objective of Industry Canada for incorporating a federal company is to have protection for the name across Canada. In order to accomplish this, the federal government must ensure that any name that is proposed does not conflict with any other name being used by an existing corporation anywhere in Canada.
Industry Canada will review your proposed name extremely carefully. The Name Granting Guidelines which is published by Industry Canada outlines the manner in which the government approves a name. A person wanting a federal name search has to realize that they will not be able to determine which names are a problem for the federal government.
Having a search house perform a preliminary name search first will save you time. Industry Canada will not allow any name to be registered which is anywhere close to any name already on file and will even reject names that sound like other registered names. Therefore it is a good idea to have a registered search house do the preliminary name search in advance.
A search house is trained to look for these types of conflicts. If you do not do a preliminary name search and the federal government rejects your proposed Canada Name Search, you will be required to order another Canada name search in order to request the government to look at another proposed name. This will continue until a Canada name search is cleared. The preliminary name search helps prevent this waste of money.
The federal government as well will provide you with a name clearance which is called a Federal Name Decision which can be obtained in advance of filing your articles and save wasted time. However, a Federal Name Decision cannot be obtained without first providing a Canada Name Search. They will not look at a proposed company name without a full Federal Nuans name search report being provided to them. Hence, the reason for the preliminary name search.
The federal government is extremely careful when it scrutinizes a federal nuans name search report and there really is no guarantee your name will be accepted but an experienced search house can help reduce the likelihood of a rejection.
Resources for Canadian Business Owners provides legal and government information to Canadian businessowners including information about Corporation Name Search