Federal or provincial incorporation of a company in Canada requires proper planning, and a NUANS report is an important part of the process.
By using this report, one can ensure that the proposed corporate name does not interfere with any existing companies or trademarks, which may be refused or lead to a delay in the incorporation process.
The awareness of the costs, schedules, and best practices related to NUANS reports can help the entrepreneur navigate the process effectively.
A NUANS report can give a list of current names and trademarks that are identical or similar enough to confuse a proposed name, serve as a reference for regulators and business owners.
It is especially relevant in jurisdictions like Ontario, Alberta, New Brunswick, Nova Scotia and Prince Edward Island, where a NUANS report is required to incorporate. This article elaborates on the purpose of a NUANS report, breaks down its costs and schedules and offers practical tips on how to make the incorporation process easier.
What Is A NUANS Report and Its Importance
A NUANS report (Newly Upgraded Automated Name Search) is a name comparison service as required by the government, where the proposed corporate name or trademark is checked to see whether there is an existing name or similarity between the proposed name and other registered names.
Although it is not a guarantee of approval, it will reduce the risk of being rejected by finding possible conflicts at the initial stage. The timeframe of the report is 90 days, and when incorporation is not done within this time frame, then a new NUANS report has to be drawn up.
In most jurisdictions in Canada, a NUANS report, together with articles of incorporation, must be submitted to avoid challenges or objections brought before the court because of similar names.
To minimize the possibility of conflict further, it is recommended that the entrepreneurs conduct informal checks prior to and during the incorporation process. These involve searching on the internet, analyzing social media, checking the availability of domain names, and analyzing federal and provincial corporate registers and trademark databases.
With the help of these informal searches in combination with the NUANS report, the business owners receive a more detailed and effective picture of possible naming disputes.
Cost Breakdown
The price of acquiring a NUANS report depends on the provider, the jurisdiction and the services included:
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- Base / Agent-Assisted NUANS Report: Approximately $13.80 (plus tax) the most basic tier.
- Instant / Premium Delivery Option: Around $24.99 for express or same-day digital delivery through official service providers.
- Packages with Presearch and Evaluation: Approximately $99 includes a preliminary check and expert evaluation to ensure the proposed name is distinctive and compliant.
- Federal Name Approval with a Specialist: $99 + government fee
- Provincial incorporation: Filing Fee: $29 + government fee
In total, the NUANS report, legal assistance and additional services can add up to $400 – 1,100 for total incorporation costs.
Typical Processing Times
Timing is of the essence so that the NUANS report does not expire, and incorporation is completed in an efficient manner:
1. Preliminary Name Search
There are some optional checks before requesting the official NUANS report, which may take a few minutes to a few hours.
2. Issuance of NUANS Report
Reports can be provided instantly, but some providers may take until the next business day.
3. Under Government Review / Name Decision
Under federal incorporation, the name decision is made instantly. High volume, incomplete applications or holidays may cause delays; therefore, it is recommended to plan ahead.
4. Incorporation Filing
Online federal incorporation is available in 1 business day, and as little as 4 hours with express services. Express services are usually more expensive but may be justified when a quick incorporation is required, such as to obtain funds or contracts.
5. Overall Timeline
With no conflicts or delays in the process, incorporation can be completed in a few business days, but delays can drag out the process to a week or more.
It is also advisable to schedule the NUANS report in advance so that it can be submitted close to the filing date to prevent it from expiring within the 90-day validity period.
Tips For a Smooth Incorporation
Adherence to best practice can help to avoid rework or rejection:
1. Informal Research Before Performing Formal Research
Use search engines and domain checks, as well as provincial registries, to weed out the obviously conflicting names.
2. Come Up With A Few Name Alternatives
Submitting two or three alternatives gives more chances for immediate approval in the event that the primary choice is rejected.
3. Ensure Distinctive Naming
Examiners like names that identify business activities or locations. Adding context decreases ambiguity.
4. Order NUANS Report Close to Filing
Minimizing the gap between receipt of the report and submission of the incorporation minimizes the risk of expiry.
5. Know Service Provider and Government Processing Times
Avoid weekends and holidays when you might encounter longer queues.
6. Know What Your Provider Covers
Some provide only the report, while others incorporate evaluation, resubmission or government submission support.
7. Carefully Track Your 90-day Window
Note the issue date of the report, and make sure that the incorporation is filed before the expiration date.
8. Be Prepared for Objections
Even with a NUANS report, government examiners can have concerns. Having backup names and context explanations can greatly reduce delays and resubmissions.
When NUANS Is Not Required
Some provinces, including British Columbia, Manitoba, Saskatchewan, Quebec, Newfoundland & Labrador, and Yukon, do not require a NUANS report. They are instead dependent on local business name registries. In these cases, the search within the provincial scope is sufficient.
There is also the possibility of using numbered companies, that is, companies with a number instead of a name and avoiding the requirement of a NUANS report entirely. However, numbered companies are less ideal for branding.
Always check with the rules of the jurisdiction before going ahead with incorporation.
Bottomline
A NUANS report is an important tool in ensuring that a corporate name is unique and distinguishable within the Canadian jurisdictions where it is mandatory. Costs normally range from $13.80, which can be delivered within hours, with government name decisions and incorporation filing taking additional days.
Studying the process in advance, the use of alternative names and submitting the report near filing time can help make incorporation easier and less likely to be rejected or delayed.
Branding, domain name, and marketing influence should also be considered by the entrepreneurs during the process of choosing names, where the NUANS report is only part of the business identity procedure.
Understanding the rules and timelines unique to a jurisdiction enables entrepreneurs to go through the process effectively without wasting time, cost, and possible complications.
