Corporations and Limited Liability Companies will no longer have a Company Name
Corporations and Limited Liability Companies will no longer have a Company Name
What implications will it have for my company?
With the enactment of Law 10729 on Friday, May 30, which partially amends the Commercial Code, a significant change has been introduced in the way commercial companies are identified in Costa Rica.
As of Monday, June 2, 2025, newly incorporated corporations (Sociedades Anónimas) and limited liability companies (Sociedades de Responsabilidad Limitada) will no longer be allowed to identify or register using a company name (razón social). Instead, the National Registry will automatically and officially assign a legal entity ID number (cédula jurídica), which will serve as the exclusive legal identifier of the company.
Under this reform, companies may still choose to use a trade name; however, it will be optional and must be formally registered as a commercial name with the Industrial Property Registry.
It is important to note that the reform does not include express provisions concerning companies incorporated prior to June 2, 2025. Therefore, it may be interpreted that these companies are not affected by the change and may continue using their company names. Nonetheless, we recommend evaluating the registration of a trade name to secure protection through the Industrial Property Registry and minimize the risk of misuse by third parties.
Please keep in mind that a trade name identifies a company, while a trademark distinguishes the goods or services it offers. Although both are registered with the Industrial Property Registry, they serve different purposes.
At BDO, our team of Intellectual Property specialists is available to support you through this new legal framework, ensuring your business remains protected and strategically positioned in the market.