Key Considerations When Choosing A Name For Your New Limited Company?

What are the Rules Around Limited Company Names?

In the UK, The Companies Act 2006, the Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 (SI 2015/17), and the Company, Limited Liability Partnership and Business (Sensitive Words and Expressions) Regulations 2014 (SI 2014/3140) clearly outline the rules and regulations for choosing a company name in their incorporation and names guidance.

A Companies House company name check will show you exactly what name you are permitted to use. Before running your Companies House company name check, it is important to consider the following factors:

• Try to avoid:
  • Registering a company name similar to any other company name on the register would lead to confusion and public misunderstanding. This, however, is not an issue if the existing company consents to register your name or if your new company will be part of the same group of a current company.
  • Including words in your company name that suggest your enterprise has links to the UK Government, public authority, the Royal family, or any other kind of official institution.
  • Using words with connotations of business pre-eminence or a particular kind of status.
  • Any reference to a geographical location in a company name suggests a link to an official organisation or administrative authority, for example, “The United Kingdom”, “London”, “Scotland”, etc… As such words/company names would require approval from the Secretary of State at Companies House.
  • Choosing a company name with offensive words or an allusion to criminal activity.
• Important considerations:
  • Avoid any intellectual property infringement and possible legal disputes by checking the Trademark register.
  • If you want to use a word that implies a specific profession or function, you have to prove that you have the legal qualifications to provide such a service. You will also need approval from the appropriate body related to your profession/qualification in question.
  • It is a legal requirement for private limited companies to include the words “Limited” or “Ltd” at the end of their name. Companies that are registered in Wales can use “Cyfyngedig” or “CFY”. There’s no legal difference between the complete “Limited” and the abbreviated “Ltd”; either of these can be registered, and both are interchangeable after incorporation.

Some additional exemptions may apply for certain limited by guarantee companies, and these are important to consider when beginning your new venture. For more information on Limited by guarantee, companies visit gov.uk.

Dissolved Limited Company Names

You are not legally prevented from using a dissolved limited company name. However, it may be worthwhile to simply research the company’s past trading activities to determine any negative/criminal associations attached to that particular name. This ensures that you will be aware and prepared for any customers who may have had negative experiences with the previous company, and will allow you to avoid risking damage to your reputation before you even get started!

Like running a Companies House company name check, you can find out about a company by assessing their last set of accounts via Companies House Service. On top of this, running a simple Google search will return newsworthy information about the dissolved company. A credit check of the dissolved company may be worth considering as this will disclose whether the company has any County Court Judgements (CCJs).

Running a Companies House Company Name Check

Now that you know what to look out for and what options are available, the next part is quite simple. Using the Government’s name availability checker you can simply need to run a Companies House company name check.

How can Merchant Connect help?

Merchant Connect can save you time and run all necessary checks for you, ensuring all details, processes, and research are carried out from the outset.

We can support your business in choosing the right name for you, ensuring that you adhere to regulations and avoid using words that may be detrimental to your company’s credibility. To find out more about the overall process of setting up your company – including choosing the right name for you, get in touch with us today where one of our friendly team will be happy to advise! Contact us by calling +44 1268 645 295, emailing at info@connnectincorporations.com, or by filling in a contact form, and one of our consultants will be in touch shortly!