A trade name:

• Does not constitute a legal person or an independent legal entity.
• Does not constitute a proprietary right capable of assignment or transfer as a standalone asset.
• Is exclusively connected to the natural person in whose name it is registered.

Accordingly, a trade name exists only for the lifetime of its registered holder.

Following the death of the natural person:

• The registration of the trade name automatically and immediately ceases to be valid.
• The trade name:
  • is not transferable,
  • is not heritable,
  • cannot be lawfully used by any third party.

No formal act of deregistration is required. The trade name is deemed to terminate by operation of law upon the death of its holder.

Upon the death of the trade name holder:

• The business activity of the deceased terminates automatically.
• The activity cannot lawfully continue under the same name.
• No commercial transactions may be carried out in the name of the deceased.

Specifically, the following actions are prohibited:

• Issuance of invoices,
• Execution of new contracts,
• Collection of monies,
• Use of business-related bank accounts.

Any such acts would be unlawful and legally void.

Non-Transferability and Non-Heritability

A trade name:

• Does not constitute a heritable asset of the deceased’s estate.
• Cannot be transferred through a will.
• Cannot pass to heirs under any circumstance.

Rights and Options of the Heirs

The heirs, like any third party, may continue business operations only following new lawful registration, either through:

A new registration of a Trade Name

• A new application must be submitted to the Registrar.
• The same or a similar trade name may be approved only provided that:
  • It is available at the time of application, and
  • It meets all statutory approval criteria.

The incorporation of a Company

The heirs may incorporate a company, obtain approval of a corporate name, and continue the business activity through a new legal entity.