As of March 1, 2024, Estonia’s Commercial Code §15.1 introduces a significant update, allowing entrepreneurs to reserve business names in the Estonian Commercial Register. This move is pivotal for prospective and existing businesses, aiming to streamline the process of establishing and rebranding companies.
Understanding business name reservation
To reserve a business name, it must meet specific criteria: distinctiveness and non-infringement of trademark rights. It’s crucial for applicants to ensure their chosen name stands out and does not overlap with existing trademarks.
The application for business name reservation involves stating the intended field of activity and the legal structure of the business. A state fee of 150 euros is required. The reservation, once approved, is irrevocable, emphasizing the need for careful selection.
Implications for entrepreneurs
Entrepreneurs must navigate the legal landscape carefully, ensuring compliance with trademark laws and the specific requirements of the Commercial Code.
Reserving a business name provides strategic advantages, like brand protection and market positioning, vital for long-term success.
Practical steps for business name reservation
Applicants must prepare comprehensive documentation, including business activity details and legal form, to support their reservation request.
The reservation process involves submitting an application to the registrar, with a validity period of up to six months, extendable once. This timeline requires prompt action from entrepreneurs.
Common challenges and solutions
Understanding the legal intricacies of name reservation can be daunting. Seeking professional advice is often beneficial.
Entrepreneurs should be aware of common pitfalls, such as choosing a non-distinct name or overlooking trademark conflicts.
How Incorporate can help
In conclusion, Estonia’s new business name reservation policy offers opportunities and challenges for entrepreneurs. Incorporate, specializing in corporate matters, provides essential guidance for navigating these changes. Our experts can assist in understanding the Commercial Code, ensuring a seamless name reservation process and helping secure a strong business identity in Estonia’s competitive market.
For tailored support and to address any queries, feel free to contact us.
Can the reserved business name be changed after approval?
No, once approved, the name cannot be altered.
What happens if the business is not registered within the reservation period?
The registrar will delete the reservation automatically.
Can I reserve multiple names simultaneously?
No, only one name can be reserved at a time by an individual.
Is the reservation fee refundable?
No, the fee is non-refundable as the decision on the name’s usability is final.
How can I extend the reservation period?
Extension is possible once by three months for valid reasons.