Benefits of a Numbered Company: Everything You Need to Know
The term numbered company simply refers to a business that has incorporated that has decided to not choose a specific or descriptive name. 3 min read
The benefits of a numbered company are many. The term numbered company simply refers to a business that has incorporated that has decided to not choose a specific or descriptive name. When choosing a numbered company, the registry will assign a number followed by the appropriate legal designation such as Inc.
In Alberta, a named company will consist of a distinct word, a descriptive element, and then the required legal designator.
If you are registering your company in Ontario, you will have three options when it comes to choosing a name:
- You can incorporate a company that already has a name such as Wolverine Roofing, Inc. This is a popular option because the name is usually familiar and easy to remember.
- Another option is to use a named or numbered corporation name and then adopt a business name by registering it with the government. This will give you the option to use the business name for advertising and marketing purposes. When choosing a name, it will need to be different than any other company, so it does not confuse the public. To check you can perform a free search of the government database.
- The last option is choosing to have just a numbered company. With a numbered company you will not need to worry about choosing a name as the government will simply assign a number with the necessary indicator such as 19876 Alberta, Inc. While this can be quicker and easier it is not as consumer friendly.
Benefits of a Numbered Company
While numbered companies aren't always considered consumer friendly, there are many companies that do not work directly with the general public such as companies that hold real estate titles. Since the company will not need to advertise, a name for the company does not matter.
There are other benefits to having a numbered company such as:
- A numbered company enjoys all of the same tax and liability advantages.
- They are cheaper and easier to set up.
- They do not require an additional NUANS search or the fees that go with it.
- It will never have an issue with its name since it is assigned by the government and no two corporations will get the same number.
Both named and numbered companies will need to provide the same reporting and disclosure requirements.
Incorporating a Named Company in Alberta
When incorporating, a named corporation in Alberta, you will be first required to obtain a report from the Corporate Registry, which is referred to as a NUANS report. This report will let you know if your chosen name is available and if there are any other names close to it.
To determine if you can use your chosen name is a two-step process. First, the name will be reviewed to make sure that it is original and there are no other corporations bearing the name. Next, they need to determine if the name bears enough similarity to another corporation that it could cause confusion.
If there is a risk of the name being confused with another, then the name can be challenged. The other company has the right to argue that there is too much similarity and it can affect their business and have the right to file an objection with the registrar against the use of the name. If this occurs, you may be required to change your name.
Even if a corporation does not have the ability to object with the registrar, it might still have a case that can be made in civil court. They may seek to recover damages from what the confusion may have caused.
Incorporating a Named Company and a Numbered Company in Alberta
There are multiple steps to incorporating a named company and a numbered company in Alberta. You will need to:
- File your company's Articles of Incorporation with the Registrar of Corporations in Alberta.
- Choose an Alberta Registered Office and records office. You will need to have someone to accept legal documents on your company's behalf and a physical location where records can be accessed.
- Decide who the founding directors of your corporation will be.
- Create and maintain a corporate book of meeting minutes to include all by-laws, resolutions, and stock share certificates
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