- Legal Changes Mandate Protecting Your Business Name and Corporate Identity
As of May 30, 2025, with the implementation of Law 10729, new Corporations (S.A.) and Limited Liability Companies (S.R.L.) will be identified by their legal ID number rather than by a company name or denomination.
The goal of this change, enacted through a reform of the Commercial Code, is to simplify the process of identifying companies and to make it easier to register and modify companies in the Mercantile Registry by using electronic means. Existing companies must also comply with this new regulation and include their legal ID in all communications and official documents.
From now on, commercial companies will be identified by their legal ID number, which the National Registry will automatically assign. With this change, the entity’s name will be its legal ID number, followed by “S.A.” or “S.R.L.,” depending on the type of company incorporated.
In summary, the main changes introduced by this new legislation are as follows:
- Identification by legal ID number: The new S.A. and S.R.L. will be identified solely by their legal ID number, assigned by the National Registry.
- Removal of corporate name: The adoption of a corporate name will not be required or permitted for the legal identification of these companies.
- Trade name registration: Companies will be able to register their trade name, which they use as a commercial identifier, to protect and safeguard their identity and intellectual property from third parties.
- Application to existing companies: The reform applies to both new companies and those already registered, which must now include their legal ID in all communications and official documents.
- Removal of name reservation: The possibility of reserving a company name before incorporation is eliminated.
In light of the aforementioned changes, registering a trade name is essential to protect the trademark identity from third parties. Although it is no longer legally required, the trade name remains strategically important for companies.
A trade name distinguishes the company in the market while also legally protecting its corporate identity, preventing misuse by third parties, and aiding in brand positioning. It is the name recognized by the market and used in communications, advertising, signage, packaging, and social media.
For these reasons, at Divimark we believe that registering the trade name is highly advisable and that companies should secure their corporate identity through this registration as soon as possible.
As a leading law firm in the field of intellectual property in Costa Rica, Divimark offers comprehensive services for registering trade names and trademarks to help protect and enhance the value of our clients’ intangible assets.
