A company's name should not only be meaningful and appealing but must also comply with the law. Naming a company is considered an art but what should enterprises consider when creating an abbreviated name?
I. The role of company’s abbreviated names
The abbreviated name of a company plays an important role in brand building and identity recognition. Specifically, it serves the following purposes:
- Creates a strong impression and is easy to remember: Abbreviated names are often short and easy to read, pronounce, and recall.
- Reflects the business sector: The abbreviation can indicate the industry or field of operation.
- Expresses company culture and mission: It can also convey the company’s values and goals.
II. Legal regulations on company abbreviated names
1. What is a Company’s Abbreviated Name?
A company's abbreviated name is derived from its full legal name, including the business type and the unique business identifier.
2. Can companies have identical abbreviated names?
According to Point b, Clause 2, Article 41 of the Law on Enterprise 2020, a proposed abbreviated name must not be identical to one that is already registered.
Also, under Clause 1, Article 38 of the same law, it is prohibited to use a name that is identical or confusingly similar to an already registered company name, as further detailed in Article 41.
Therefore, abbreviated names must be unique and not cause confusion with existing ones.
3. Can branches, representative offices, and business locations register using abbreviated names?
According to Clause 2, Article 20 of Decree 01/2021/ND-CP on enterprise registration, branches can register names in Vietnamese, in foreign languages, and abbreviated forms.
Hence, branches, representative offices and business locations are allowed to register using abbreviated names.
III. Questions on abbreviated names of enterprises
1. Is it mandatory for a company to have an abbreviated name?
According to Article 37 of the Law on Enterprise 2020, the official Vietnamese name of a company must include two components:
- The business type (e.g., limited liability company, joint stock company);
- The distinctive part (unique business name).
Other details in Vietnamese Law:
- The business type may be written as “TNHH” for the Limited Liability Companies, “CP” for Joint Stock Companies, etc.
- The distinctive name can include Vietnamese alphabet letters, F, J, Z, W, numbers, and symbols.
- The enterprise name must be displayed at the headquarters, branches, offices, and must appear on documents, contracts, and company-issued publications.
Based on this, only a Vietnamese name is required by law. A foreign language name and an abbreviated name are optional, depending on the business owner’s preference.
2. Can companies share the same abbreviated name?
As stated in Clause 2, Article 41 of the Law on Enterprise 2020, an abbreviated name must not be identical to that of another registered company. Using an identical or similar name is considered a violation under Article 41.
Hence, abbreviated names must be unique and not duplicated.
3. Must the abbreviated name include the business type?
Typically, the abbreviated name is derived from the company’s full name (including a foreign language. When creating an abbreviation, including the business type is required, similar to the Vietnamese name.
For example:
- JSC is used for a Joint Stock Company;
- CO., LTD or COMPANY LIMITED is used for a Limited Liability Company (with one or more members).
Legal advisory services on company abbreviated names
The above information covers legal regulations regarding company abbreviated names. For more support or to better understand regulations on naming or renaming a business, feel free to contact NPLaw. Our experienced lawyers and legal consultants are ready to assist.
