Originally Published Dec 18, 2015
It’s not uncommon for businesses to outgrow their original business name. Whether your company’s focus has shifted, you’re rebranding, or you just want a fresh start, changing your business name can be a necessary step. In Ontario, the process for changing a business name varies depending on your business structure. Let’s explore how you can move toward the business name you desire, no matter your business formation.
Can I Change My Business Name?
Whether you can change your business name depends on your business structure:
Sole Proprietorships: You can change your business name, but a new Sole Proprietorship registration is required. The process involves canceling the existing Sole Proprietorship registration and registering the new Sole Proprietorship name. This step ensures that your business name aligns with your evolving brand identity.
- General Partnerships: There are two options available to you with a General Partnership:
- Cancel & Register Again: If you do not wish to continue using the original General Partnership business name, you can cancel the current General Partnership and register a new General Partnership with a new business name.
- Add a Trade Name: If you operate a General Partnership, you can also register an additional business name for the GP (General Partnership). This lets you retain use of the original name, and adds a secondary name that you can do business with. This option became available as part of the updates to the Ontario Business Registry (OBR) in October of 2021, allowing partnerships more flexibility in managing their business identity.
- Corporations: For incorporated businesses, changing the business name is a more structured process. It requires filing Articles of Amendment to update the corporate name. The Articles of Incorporation never change from the original details provided. There are two alternative options available to you as well. If you wish to continue using the current name while adding a new business identity, you have two options:
- Add a Trade Name: You can operate a secondary business name (often referred to as a trade name) under the corporate structure, allowing the original corporate name to remain intact.
- Incorporate a Secondary Business Name: Alternatively, you can incorporate a second entity using a new business name, allowing both names to operate independently.
- Extra-Provincial Corporations: If you are an Extra-Provincially registered corporation in Ontario, you will need to notify the Ministry of Public and Business Service Delivery (MPBSD) of the new business name by filing a Form 2 Notice of Change after the corporate name has been changed in your home jurisdiction.
- Not-for-Profit or Charitable Organizations: Yes, you can change the name of an existing not-for-profit or charitable organization in Ontario. The process is similar to that of a corporation, requiring filing NFP Articles of Amendment under a different provincial act than the counterpart profit corporation. The articles are reviewed by the appropriate governing bodies, such as the Ontario Public Guardian and Trustee for charitable organizations. Although less common, this option is available for organizations seeking a new name to reflect changes in their mission or activities.
What Are the Steps to Changing a Business Name?
The process differs based on whether you are a Sole Proprietorship, General Partnership, or Corporation. Here are the steps involved for each:
Sole Proprietorship & General Partnership:
- Cancel the Current Registration: First, you will need to cancel the current business name registration through Ontario Business Central or another service provider. This can be done easily through an online portal, and the cancellation takes effect on the same day of filing.
- Register a New Business Name: After canceling the current registration, you can proceed with registering the new business name. You can search the new business name for availability as part of the registration process by selecting our name search option. We will search the NUANS (Newly Upgraded Automated Name Search) database to verify if the business name is unique and not already in use.
- Update CRA & Other Entities: It’s essential to notify the Canada Revenue Agency (CRA) about the change. This puts an end to the existing business and you may want to close payroll tax and HST accounts assigned to the business you are canceling. Additionally, inform any suppliers, clients, and financial institutions of the name change.
Corporation:
- NUANS Report: A NUANS report must be conducted to verify the availability of the desired corporate name. The NUANS report must be included with the submission of the Articles of Amendment to verify the availability of the new corporate name.
- Amend Articles of Incorporation: To change your corporation’s name, you will need to file Articles of Amendment. This requires submitting the change to the MPBSD using an online service provider like Ontario Business Central.
- Issue a Shareholders’ Resolution (if applicable): In some cases, a resolution from shareholders may be necessary to approve the name change, especially for larger corporations.
- Update Corporate Records & Licenses: After the corporate name change, make sure to update your corporate records and any licenses or permits held under the old business name.
- Notify the CRA & Other Parties: It’s important to notify the CRA and update your corporate tax account with the new business name. Also, communicate the change to your banks, suppliers, and other stakeholders.
Common Reasons to Change a Business Name
- Rebranding: As a business evolves, so does their identity. Rebranding often requires a new business name that better aligns with the company’s vision.
- Expansion or Shift in Focus: If your business has expanded its offerings or changed its focus, the current name may no longer reflect what you do.
- Mergers & Acquisitions: After merging with another business or acquiring a new entity, a name change might be necessary to reflect the new business structure.
- Legal Requirements: Sometimes, businesses must change their name due to legal conflicts, such as trademark issues or similarities with other businesses.
What Happens After Changing the Name?
Once you’ve successfully changed your business name, there are several steps you must take to ensure a smooth transition:
- Update Marketing Materials: Ensure that your website, business cards, social media profiles, and other marketing materials reflect the new business name.
- Notify Clients & Partners: Communicate the change to your clients, partners, and suppliers. You want to make sure everyone you do business with knows about your new identity.
- Update Financial Accounts: Your bank accounts, credit cards, and other financial records will need to reflect the new business name to avoid any confusion in payments.
Why Use Ontario Business Central For Your Name Change?
Ontario Business Central provides a fast, reliable, and hassle-free process for changing your business name. Whether you are canceling and re-registering a Sole Proprietorship or amending a corporate name, Ontario Business Central offers comprehensive support through its online portal. We also offer preliminary searches to see if your desired name is available prior to completing any change. As with anything, change occurs in every area of life including your business name. We are here to assist you with any questions you may have and offer full business services to complete the change easily.
inquiries@ontariobusinesscentral.ca
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Fax: 1-866-294-4363
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions, that you speak to a qualified professional.
