Named Company vs Numbered Company: Which Should I Choose?

One of the first decisions you’ll make when incorporating is whether to use a named company or a numbered company. Although there’s no legal difference between the two, each has its own pros and cons.

What is a Named Company?

A named company operates under a unique corporate name like “Bob’s Widgets Ltd.” Named corporations must end with a legal element such as Inc., Corp. or Ltd.

Benefits: Builds brand awareness, allows targeted marketing, provides name protection.

Drawbacks: Requires a NUANS name search (additional cost), risk of legal challenges from similar names.

What is a Numbered Company?

A numbered company is identified by a randomly assigned number like “1234567 Alberta Ltd.” They skip the NUANS name search process.

Benefits: Avoids name search costs, ensured uniqueness, eliminates the need to choose a name immediately.

Drawbacks: Hard for customers to remember, number mix-ups can cause issues, changing to a named corporation later is expensive.

What About a Numbered Company with a Trade Name?

A third option is incorporating as a numbered company but operating under a registered trade name. The full numbered company name should appear on all client-facing documents (e.g., “1234567 Canada Ltd. dba Bob’s Widgets”).

Drawback: Trade name registration does not provide name protection.

Our Recommendation

We recommend choosing a named corporation for everything except holding companies. The additional cost at incorporation is typically under $100, but changing a name later costs $300+. A named corporation also avoids the personal liability issues that can arise when clients don’t realize they’re dealing with a corporation.