How to choose and protect the corporate name of your SAS?

Choosing the name of your SAS (Société par Actions Simplifiée) is not just a creative step — it is a legal and strategic decision. The corporate name (dénomination sociale) identifies your company and gives it visibility in the market. It must be chosen in a legally secure way and protected to becomes a valuable asset for your business.

I. How to choose the name of a SAS?

When creating a SAS (Société par Actions Simplifiée), the choice of its corporate name (“dénomination sociale”) is an essential step. More than a simple name, it represents a sign of legal and commercial identity which benefits from a strict legal framework regarding choice, use, and protection.

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1. Legal and regulatory prohibitions

The shareholders may freely choose the corporate name, subject to respecting certain prohibitions:

  • It is forbidden to use terms reserved for regulated activities without having the legal status (e.g., bank, credit institution, venture capital company, foundation, accounting firm, etc.).

  • The use of the word “solde” or its derivatives (e.g., “solderie”) is prohibited by article L.310-3, II of the Commercial Code.

  • In addition, certain professions, such as lawyers, are subject to specific ethical rules concerning the corporate name.

2. Three major categories of corporate names

Shareholders have wide freedom, but the choice of the name usually falls into certain common logics:

  • Corporate name linked to the corporate purpose (“objet social”): It evokes the activity of the company (e.g., Conserveries de l’Ouest, Compagnie des eaux).

  • Patronymic corporate name: It integrates the surname of one or more shareholders (e.g., Transports Lambert, Maison Renaud). This practice is authorized in SARL, SA, SNC, etc., as long as the mention of the legal form avoids confusion.

  • Fanciful corporate name: An invented name without direct link to the activity or the shareholders (e.g., Electrostar, Infragel), provided it does not infringe prior rights.

3. Essential prior searches

Before validating a corporate name, it is recommended to carry out prior searches:

  • With the Trade and Companies Register (“Registre du Commerce et des Sociétés” – RCS),

  • And with the INPI for registered trademarks,

to avoid risks of unfair competition or trademark infringement, and to ensure that the name is not already used by a company carrying out a similar activity.

An apparent absence of conflict does not protect the company from an action in unfair competition if a third party already holds a right over the chosen name (CA Paris, 9 February 2000).

4. Adding an acronym, logo, or business sign to the corporate name

Beyond the official corporate name (“dénomination sociale”), a SAS may strengthen its identity and visibility with complementary elements such as an acronym, a logo, or a business sign.

Each of these plays a different role: the acronym serves as a practical legal abbreviation, the logo protects visual identity, and the business sign identifies the place of business. Together, they form part of the company’s broader image and benefit from specific legal rules of protection.

  • Acronym (“sigle”): a legally recognized abbreviation

A company may use an acronym in addition to or instead of its corporate name (e.g., SAQAB for Société Anonyme du Quercy pour l’Alimentation du Bétail). This acronym benefits from the same protection as the corporate name, provided it is declared to the Trade and Companies Register (art. R.123-53 and R.210-4).

  • Logo: protection of visual identity

Shareholders may create a logo from the name or acronym of the company. It is then recommended to register it with the INPI as a trademark, to avoid imitation and ensure protection of the graphic representation.

  • Business sign (“enseigne”): identification of the place of business

The business sign refers to the name displayed on the business premises or the commercial establishment. It may differ from the corporate name. However, if it contains the surname of a shareholder, the company cannot continue to use it after the departure of that shareholder, unless explicit agreement.

5. Corporate name and third-party rights of a SAS: trademark, trade name, surname

The choice of a SAS corporate name cannot ignore the rights of third parties. Two sensitive issues often arise: the risk of infringing existing trademarks, and the use of a shareholder’s surname as part of the company’s identity. Both situations are subject to strict legal rules designed to prevent confusion and protect prior rights.

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We help you select, verify, and protect your SAS corporate name through trademark searches, priority use strategies, and swift legal actions against infringement or unfair competition.

a) Risks relating to existing trademarks

A SAS cannot adopt as its corporate name a name that is:

  • identical or similar to a pre-existing trademark,

  • for identical or similar products or services,

  • if this creates a risk of confusion in the mind of the public (French Intellectual Property Code [CPI], art. L.713-2 and L.713-3-1).

This principle applies regardless of the good faith of the director or the actual use of the trademark.

b) Integration of a surname (“nom patronymique”)

A surname may be integrated into the corporate name under certain conditions:

  • Its use must not create confusion with other companies or persons,

  • The name used must correspond to an active shareholder, unless passive use is proven or the name has already been transferred.

A company may retain this surname even after the shareholder’s departure (Cass. com., 12 March 1985).

6. Authorized characters and graphic restrictions for the corporate name of a SAS

It is permitted to include special characters in the corporate name such as:

  • the at sign (@),

  • the slash (/) or the asterisk (*).

However, symbols such as the euro (€) or ambiguous combinations such as “X3” are refused to avoid confusion (Avis CCRCS 02-33).

7. Using a shareholder’s surname in the corporate name

When a shareholder’s surname is included in the corporate name:

  • That shareholder can no longer demand its withdrawal, unless a specific clause provides otherwise,

  • The name becomes a distinctive element of the legal entity and may be protected independently of the shareholder (Cass. com., 13 June 1995).

It is even possible to register this corporate name as a trademark, provided that it does not infringe prior rights or the reputation attached to that name.

II. How to protect the corporate name of the SAS

Protecting the corporate name (dénomination sociale) of a SAS requires meeting certain legal conditions and, if necessary, taking judicial action against infringements. The law recognizes the right to a name based on priority of use and the risk of confusion, even if the name is not particularly original. Once these conditions are established, a company can rely on several remedies — from unfair competition claims to trademark infringement actions — to defend its identity and prevent third parties from exploiting or diluting its name.

1. Legal Conditions for Protecting the Corporate Name of a SAS

For the corporate name of a SAS to be legally protected, two key conditions must be met. First, protection is tied to priority and public use — the right belongs to the company that actually uses the name openly and visibly, not simply to the one that registers it. Second, protection depends on the risk of confusion — even a simple or non-original name is safeguarded if its use by another business could mislead the public or cause commercial harm.

a) Priority and public use

The right to the corporate name belongs to the one who uses it first, in a public and visible manner:

  • A company may oppose the use of a similar name if it proves prior use (Cass. com., 31 January 1977).

  • Mere registration with the Trade and Companies Register (RCS) is not sufficient if another prior use exists (Cass. com., 18 June 1996).

b) Distinctive character and risk of confusion

Protection applies even if the corporate name is neither original nor distinctive. What matters is the risk of confusion and commercial prejudice (Cass. com., 10 May 2006; 7 July 2021).

The risk of confusion is assessed according to:

  • visual or phonetic proximity (e.g., Mayday travail temporaire and Mayday),

  • geographic area of activity,

  • similarity of the products or services offered.

It may exist even without direct competition, as long as confusion is possible in the mind of the public (Cass. com., 31 January 1977; CA Paris, 18 September 1991).

2. Legal remedies in case of infringement of the corporate name of a SAS

When the corporate name of a SAS is infringed, the law offers a range of legal remedies to defend it. These include classic actions such as unfair competition or trademark infringement, as well as more specific procedures like opposition or cancellation of a conflicting trademark. At the same time, the law imposes certain limits on these remedies, particularly where a name has been tolerated over time or used outside the company’s actual activity. Finally, protection may even extend to the international level, where a European Union trademark conflicts with a French corporate name.

a) Action for unfair competition

The injured company may:

  • Claim damages,

  • Obtain prohibition of use of the name by a third party (CA Paris, 5 October 1989),

  • Or demand a partial modification of the contested name.

b) Action for trademark infringement

If the corporate name is also registered as a trademark, the company may bring an action for infringement (CPI art. L.716-4), including for online uses (Cass. com., 18 October 2023).

An additional action for unfair competition is possible for distinct facts (Cass. com., 15 June 2010).

c) Opposition or cancellation of a trademark

The company may:

  • File an opposition within two months of publication of a trademark application (CPI art. L.712-4),

  • Request nullity of the trademark if a risk of confusion exists (CPI art. L.711-3, I-3°; L.714-3; Cass. com., 10 January 2024).

d) Limits to legal action

  • Tolerating the use of a trademark for 5 years prevents any action, except in cases of bad faith (Cass. com., 5 June 2024).

  • Protection of the corporate name covers only activities actually carried out, and not all those listed in the bylaws (Cass. com., 10 July 2012).

e) International protection

A European Union trademark may be annulled if it infringes a French corporate name with supra-local scope, for identical or similar products or services (CJEU, 5 April 2017, case C-598/14).

Conclusion

The corporate name of a SAS is much more than a simple name: it is a legal, economic, and strategic asset. Its designation must comply with strict legal rules, its protection requires vigilance, and its defense may involve activating available legal remedies in case of infringement.

It is therefore essential to secure the corporate name from the creation of the company through thorough prior searches and, if necessary, specialized legal assistance.

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