Business Trade Name Registration

Business trade name registration is a legal process in which a company officially registers the name it plans to use for business purposes, usually with the business bureau or revenue authority in its country. The registered business name, which may be different from the company’s official name as a legal entity, is effectively a recognized DBA (“Doing Business As”) alias under which it can legally engage in commercial activity.

What are the benefits of business trade name registration?

Registering a business trade name offers a variety of benefits to companies, especially those operating in e-commerce. The following are some key advantages:

• Legal status and compliance: Authorities usually require businesses to register their trade name in order to operate. Doing so ensures that the business is officially recognized in its jurisdiction and complies with local laws so as to avoid potential penalties.
• Financial and banking benefits: Banks state that companies must have a business trade name in order to open business accounts. Registering a business trade name gives access to essential financial services for payment processing and business loans.
• Marketplace compliance: Major e-commerce platforms like Amazon, Etsy, and Walmart demand that sellers provide documentation proving that they hold a registered trade name. By registering a name, businesses gain the ability to do business on these platforms.
• Brand protection: Registered a business trade name gives a company exclusive rights to that name within their sector and jurisdiction. This provides a degree of protection to companies when building a brand. When paired with a registered trademark or copyright, it also helps protect a company’s intellectual property.
• Credibility and trust: Holding a registered trade name shows authenticity and legitimacy on the part of the business. This gives the company credibility and fosters consumer trust.

How are sellers’ trade names protected in e-commerce?

There are a variety of policies and mechanisms in place which help registered companies to protect their business identities. Key protection measures include the following:

• Verification and documentation: Sellers usually need to provide proof of business registration and ownership of a trade name to operate on e-commerce platforms. This helps to protect against unauthorized use of trade names and brand names.
• Brand registry programs: Major e-commerce platforms, most notably Amazon, offer brand registries which sellers can enroll in, provided they also hold a registered trademark. This enables sellers to report issues like counterfeiting, fraudulent listings, or unauthorized use of their name, which may infringe on their rights and identity as sellers.
• Legal recourse: E-commerce sellers who own a registered business trade name and a registered trademark have the right to take legal action against impersonators and counterfeiters. This helps them protect themselves against reputational damage and loss of revenue resulting from the unauthorized use of their name.