PART 2 (CHAPTER 2)

Question 1

Specific obligations of the traders

Answer 1

• Adopt a business name
• Keep records of their commercial activity
• Prepare the annual reports and accounts
• Comply with registration obligations

Question 2

Business name types

Answer 2

• Composed of the name of one or more people
• Composed by an expression that indicates the branch of activity
• Composed by a mixture of both types said above

Question 3

Business names of sole traders

Answer 3

composed of the trader’s full name

Question 4

Fundamental principles applicable to business names

Answer 4

a) Principle of truth
b) Novelty or exclusivity principle
c) Capacity to distinguish principle
d) Unity principle
e) Principle of lawfulness

Question 5

Principle of truth

Answer 5

the component elements of the business names must be truthful and not misleading

Question 6

Novelty or exclusivity principle

Answer 6

Business names must be distinctive and not confusingly similar to those that are already registered

Question 7

Capacity to distinguish principle

Answer 7

business names exist to allow others to distinguish one trader from another

Question 8

Unity principle

Answer 8

traders can only have one business name

Question 9

Lawfulness Principle

Answer 9

business names cannot include:
- expressions that are prohibited by law or offensive to morals
- expressions that disrespect freedom of ideological, political or religious choice
- expressions that disrespect national symbols, personalities, periods in time or institutions

Question 10

Protection of the business name

Answer 10

• you have a guaranteed right to your business name
• once your business name is registered, you have exclusive rights to it
• Protection of your business name is ensured through both preventive (stopping others from using it) and repressive (taking action against those who do) measures

Question 11

Preventive means

Answer 11

the issuance by the RNPC of a certificate of admissibility of a name does not grant exclusive rights to use the name, however, without the certificate, you cannot set up a new company or change the name of an existing company

Question 12

Means of repression

Answer 12

• the RNPC can declare a loss of the right to use business names or company names
• the court can declare a commercial name null and void or revoke the exclusive rights
• a trader whose registered name is abusively used by others has the right to:
  -> request that the author of the illegal use be prohibited from using it, regardless of whether or not it causes harm to the holder
  -> seek compensation for loss and damages
  -> initiate administrative offenses against the infringer

Question 13

Alteration of a business name or company name

Answer 13

as long as the principles of truth, novelty and exclusivity are respected, a trader can change their business name

Question 14

Transfer of a business name or company name

Answer 14

the law allows for the transfer of the business name, however it is not possible to acquire a business name without acquiring the establishment to which it is linked

Question 15

Keep proper records of their commercial activity

Answer 15

traders are under obligation to keep records and control their business’ activity through time

Question 16

Prepare the annual report and accounts

Answer 16

• traders are under obligations to create annual reports and accounts
• legal reporting is facilitated by “Simplified Business Information System” (IES), and it provides businesses with the means of submitting and sharing information to public services using an onine procedure

Question 17

Comply with registration obligations at the Commercial Register

Answer 17

• making sure you officially record certain information about your business at the Commercial Register, as required by law

Question 18

Effects of registration

Answer 18

The main purpose of registration is to ensure that certain acts are legally valid and binding on others, meaning they have legal effects against third parties