Reserving a company name in Andorra: how to choose and reserve your company name?

Choosing a company name may seem secondary when preparing to set up a business in Andorra. However, the company name is one of the first elements that needs to be secured. As long as it has not been approved, certain procedures relating to the incorporation of the company cannot be finalised. It is not simply a matter of finding a name that sounds good. The name must be acceptable to the authorities, must not create confusion with an existing company and must remain consistent with the planned business project.

Here is what you need to understand before submitting a name reservation request, as well as the main points to check to avoid rejection or unnecessary procedures.

What is a company name?

The company name is the official legal name of a company. It is under this identity that the company is incorporated and identified in its administrative and legal dealings. Once the company has been established, this name appears in particular in its articles of association, as well as on its professional and administrative documents. For an Andorran company, for example, you may come across a name such as “Tecnològics Andorrans, S.L.”. The “S.L.” designation indicates the company's legal structure.

This legal identity should not be confused with the brand or name used to communicate with customers. A company can perfectly well have a legal name while operating under a different trade name. This distinction should be anticipated from the outset. Obtaining a company name does not necessarily mean that the same name is available as a trademark, domain name or commercial identity.

Company name, corporate name and trade name: what are the differences?

These terms are often used as though they referred to the same thing. In practice, their functions are not identical. The company name corresponds to the company's legal identity. It is used to officially identify the business and appears in the legal documents relating to it.

The concept of a corporate name is traditionally associated with certain structures in which the name of one or more partners contributes to identifying the company. However, the exact terminology should be assessed according to the legal structure and applicable law.

The trade name follows a different logic. Its primary purpose is to present the business to the public. A company incorporated under the name “Bella Image, S.L.” could, for example, operate a business under a different name intended for its customers.

It is therefore important to consider the legal identity and commercial identity of the project separately. This precaution becomes particularly important when an entrepreneur intends to develop a long-term brand.

Why reserve the company name before incorporating the company?

Reservation makes it possible to check whether the proposed name can be used for the future company and whether it creates any obvious conflict with an already registered name. This is a practical step in setting up a business: finding a name does not mean that the authorities will accept it.

In particular, two company names should not create confusion that could make it difficult to identify the companies concerned. Care should be taken with terms that could suggest that a company carries out a regulated activity or benefits from a specific status. In practice, it is better to work with several options rather than build the entire identity of the project around a single name before it has been approved.

It would also be advisable to check, in parallel, the availability of the intended trademark and domain name. These checks are governed by different rules from those applying to the company name, but they help avoid discovering too late that a name that is legally acceptable for the company is difficult to use commercially.

What rules must be followed when choosing a company name in Andorra?

Choosing a company name in Andorra is subject to specific requirements. The authorities assess, among other things, whether the proposed name complies with the applicable rules and is sufficiently distinctive from existing company names.

The linguistic aspect must also be taken into account. Catalan is the official language of Andorra, so the wording of the company name should be prepared in accordance with the rules applicable at the time of the application.

Particular care should also be taken with words that could suggest an activity requiring authorisation. Banking, financial, insurance, medical and pharmaceutical sectors, for example, may be subject to specific requirements. Using a regulated term in a company name obviously does not allow the authorisations required to carry out the activity to be bypassed.

The consistency of the name with the business project should also be checked. An ambiguous or misleading name, or one that could be confused with a well-known institution or company, is more likely to be rejected. For this reason, the best approach is to choose a sufficiently distinctive name rather than a succession of generic terms that simply describe the activity.

How can you check whether your desired name is available?

Before submitting the application, an initial search can help identify the most obvious conflicts with existing companies.

However, this check should not be limited to looking for an exact match. A name that is very similar to an existing name may cause problems if the differences are insufficient to clearly distinguish the two companies.

For example, suppose a company already has a name consisting of a distinctive term followed by a word describing its activity. Changing only the second term or adding a very generic element does not guarantee that the new proposal will be considered sufficiently different.

Preparing several genuinely distinct alternatives is generally more useful than submitting three versions that are almost identical. This administrative search can be supplemented by checking trademarks and domain names. The goal is no longer simply to obtain authorisation to incorporate the company, but to ensure that the chosen name can support its commercial development.

How does the company name reservation process work?

The process begins by preparing the proposed company names. It is useful to rank them in order of preference and check their exact spelling before submitting the application. A difference in an accent, legal structure or wording can be significant in official documents.

The application is then submitted to the relevant Andorran authority according to the procedures in force. The information requested is used in particular to identify the applicant and the proposed company names.

The authorities then review the application. If the first proposal cannot be accepted, the other options submitted may make it possible to avoid starting the process again from scratch, depending on the applicable procedure.

Once the company name has been approved, the applicant receives the corresponding reservation document. This document should be kept, as it is used during the subsequent stages of the company incorporation process.

One point is particularly important at this stage: a reservation is not necessarily valid indefinitely. The incorporation of the company must therefore be organised within the validity period indicated by the authorities on the document issued.

What documents should you prepare?

The required documents depend on the applicant's situation, the intended legal structure and the administrative procedures in force at the time of submission.

You can check the requirements directly with the relevant authority before submitting the application. This makes it possible to confirm the identification information required, the number of company names to be submitted, any supporting documents requested and the payment procedures.

This check is particularly important when setting up the company involves non-resident partners, a regulated activity or a foreign investment procedure.