verbs - "named" vs "that is named"


I want to describe my business and want to refer to it in a sentence.


I am trying to say:



"In 2015 we established a business (that is) named X".



Intuitively, the "that is" part is redundant, and makes the sentence more cumbersome. But I cannot think of a reason why we should be able to drop the verb.


Is the version without the "that is" part grammatically correct? How can it be explained?




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