In 2025, significant modifications have been introduced for the incorporation and management of companies in Costa Rica. A very relevant change is the impossibility of assigning a corporate name composed of words to a new “sociedad anónima” or “sociedad de responsabilidad limitada” (limited liability company), or when changing the corporate name of an existing company. Currently, when such a company is incorporated or when an existing company requests a change to its corporate name, the National Registry of Costa Rica may only assign, as its formal and official name, the company’s corporate identification number.
The origin of this change lies in the enactment of Law No. 10729, which amends several articles of the Commercial Code. The justification for implementing this change and eliminating the use of a word-based corporate name is the loss of distinctiveness among such names. Moreover, to ensure distinctiveness, Costa Rican law already provides for the legal figure of the “trade name” (nombre comercial).

Considering this new reality, the registration of a trade name before the Intellectual Property Registry becomes especially relevant. According to the Law on Trademarks and Other Distinctive Signs, a trade name is defined as the “word or mixed sign that identifies and distinguishes a specific company or commercial establishment.” The trade name serves not only to identify the business establishment itself, but also the business activity or line of business of that establishment, distinguishing it in the marketplace and granting it with legal protection against third parties. Its registration is an expression of the principle of registry publicity and provides legal certainty to its owner, who acquires exclusive rights to the trade name within its scope of protection.

The absence of a registered trade name can create risks for a company and its commercial activity, such as the inability to prevent third parties from using an identical or similar name, loss of market positioning, diversion of clientele, or the misappropriation of the company’s goodwill, reputation, or recognition. It may also expose the company to potential administrative or judicial disputes concerning intellectual property and competition. Furthermore, operating solely under a corporate identification number hinders commercial strategy and weakens corporate identity—elements that are essential in an increasingly competitive and digitalized business environment.
It is important to note that registering a trade name is not mandatory, nor does it occur automatically upon the creation of a company; it requires the submission of a formal application in accordance with the requirements established by the Intellectual Property Registry.

Before submitting this application, it is advisable to conduct an availability and background search for the desired trade name, to confirm that it is available and that no existing registrations are identical or similar. If the availability search yields a positive result, the applicant should promptly proceed with the registration application to prevent conflicts with third parties, and to secure protection from the beginning of its operations. This procedure constitutes an act of sound business diligence and a safeguard against potential disputes over trade name use rights.
In the current legal scenario, where the use of word-based corporate names is restricted, a registered trade name becomes the ideal tool to provide the company with a distinctive identity, a unique image, and legal certainty in undertaking its business activities. Obtaining a registered trade name demonstrates sound legal and operational planning, as well as a genuine business interest in ensuring that the company will be recognized without confusion. It contributes to the consolidation of a corporate image and facilitates commercial relationships. In many cases, this is further complemented by the registration of one or more trademarks that distinguish and protect the company’s products and/or services.

In summary, the registration of a trade name before the Intellectual Property Registry is not merely a practical necessity arising from recent corporate and registry reforms; it is an essential element of asset protection, corporate positioning, and adherence to sound business practices. Proper management of this intangible business asset strengthens the company’s market presence and ensures full exercise of its rights and obligations in the marketplace.

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