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Did you know that there is a government department in New Zealand where the words “and”, “the”, “number”, “company” & “New Zealand” don’t exist?

The Ministry of Economic Development (Companies Office), which administers the incorporation of companies in New Zealand, does not take account of these words when considering a company name.

When a business owner in New Zealand wishes to incorporate their company so they can register with the IRD, open a bank account and begin trading, they must first gain permission from the Ministry of Economic Development to incorporate a particular company name.

A name that is too close to that of an existing company will be rejected to protect the interests of the company that used the name first.

For example, because words such as “the” and “company” are not taken into consideration by the Ministry, “The Auckland Home and Cooking Company Limited” would be treated as exactly the same name as “Auckland Home Cooking Limited”.
There are also other reasons for names being rejected by the Ministry of Economic Development.

Take the example of a man named John Royal, who is about to go into business as an earthworks contractor specializing in building earth banks and dams to stop flooding in low-lying areas.

John wants to call his company “Royal Earth Dam and Bank Contractors Limited”. A bit of a mouthful, but a reasonable choice, right?

Not according to the Ministry. John is unlikely to be allowed to register that company name.

Why, you might ask, might John’s choice not be allowed? After all, it simply states his name and the type of work he will be undertaking, doesn’t it?

In the case of John’s company, the use of the words “royal” and ”bank” would cause the problem. These are two of the words that are very carefully controlled by the Ministry to ensure only companies who can legitimately claim the right to be called “Royal XYZ Limited” or ”ABC Bank Limited” are allowed that privilege.

There are other words too that may cause the Ministry to reject a choice of company name. Certain trademarked names and words that might cause offence (such as dam with the “n” on the end) will not generally be allowed.

Glenn Smith, Director of Company Net Limited, who’ve been specialising in forming companies for New Zealand businesses for over six years, says ”It can be a bit confusing for people who are not used to the rules and regulations governing the use of company names in New Zealand. It always pays to check with an expert. There are certain ways of presenting words in a name which can usually mean that everybody gets to use a name they like.”

Company Net is presently offering HomebizBuzz visitors a FREE company name check.  Simply click here to email the name you would like checked and you'll receive a response letting you know if the name is available within 24 hours (working days).