Naming a business
Getting the name of your business right is very important, but it is also one of the more enjoyable aspects of starting up.
Your name needs to give potential customers an idea who you are and what you offer. It also needs to be legal.
This briefing covers:
- Issues that can affect your choice of name.
- Legal restrictions regarding naming business.
- How to safeguard your business name.
1 Your business name
1.1 You can trade under your own name, or choose a different business name.
- A sole trader can use his or her own name or a business name. For example, Peter Smith could trade as Peter Smith, P Smith, or Peter Smith Services.
- A partnership can trade under the names of all the partners or a business name.
For example, Peter Smith and Lisa Jones might trade as P Smith and L Jones or as S & J Services.
- A limited company or limited liability partnership can trade under its registered name or use a different business name.
If you buy an off-the-shelf company you can apply to change the registered name.
- To further protect your business name from use by others you can register it as a trade mark, or a domain name (for your website and email addresses), or both.
The Patent Office regulates trade mark registration (08459 500505). To check web domain names free of charge, search at a name registration service such as www.netnames.co.uk.
Always check you are not infringing any trade marks with the name you pick (see 7.2).
If you trade under any name other than your own or your registered business name you must disclose the ownership of the business and an official address on your stationery, on a sign at your premises and to any business contact who asks for it.
1.2 Certain names are not allowed. The name must not be misleading or likely to cause confusion with an existing business. Names judged to be offensive are also banned by Companies House.
- Check the name you want to use, or one close to it, is not being used by another business in a similar line.
Check the Companies House index of company and limited liability partnership names or use a company registration agent.
The fact a name is not in use does not necessarily mean you will be able to use it.
- An agent can check for names which are already registered as trade marks. Unless this is part of a company formation or limited liability partnership registration deal it, will probably cost you £50 to £80.
1.3 Certain words are prohibited by law. For example, British, Royal and Bank.
- Only limited companies can use the word Limited or Ltd in their names. Other words may need to be justified. For example, international.
- Only limited liability partnerships can use Limited liability partnership or LLP.
Ask your solicitor, or ask Companies House for their booklet GBF2 on prohibited words.
What's in a name
Choose a name that will create a positive impression and help your marketing. For example, suppose Peter Smith and Lisa Jones set up a delivery business based in Bristol. They might consider several names:
- Action Deliveries sounds like a dynamic delivery business. It would come near the top of any alphabetical list, such as in Yellow Pages, and is easy to remember.
- Bristol Deliveries would tell people what the business does and where it does it.
- Smith Jones provides no information on its product or service, so could leave potential customers none the wiser.
- S&J Deliveries sounds like a small, and perhaps amateurish, delivery business.
