Whether starting a new business or converting from sole trader to a limited company, you must choose a company name before completing and submitting your company formation application.
This may sound easy enough, but it requires careful consideration. Aside from ensuring the name is right for your business, it must comply with various rules and restrictions. These are set out in the following company legislation and regulations:
- Companies Act 2006
- Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 (SI 2015/17)
- Company, Limited Liability Partnership and Business (Sensitive Words and Expressions) Regulations 2014 (SI 2014/3140)
In this post, we cover the legal requirements when naming a limited company (or LLP), how to check if a name is available to register, and some top tips on creating a memorable and on-brand name.
Legal requirements when choosing a company name
Many people strike it lucky with their first choice of company name, finding that it’s both legally compliant and available to register. However, that’s not always the case.
To avoid disappointment and reduce the risk of Companies House rejecting your application, you should familiarise yourself with company name rules and restrictions. We summarise these below.
1. It must be unique
The name of your limited company must not be the ‘same as’ (or too similar to) an existing name on the UK register of companies. This ‘same as’ rule applies to names where the only difference to an existing company name is:
- certain punctuation
- certain special characters (e.g. the ‘plus’ sign)
- a word or character that is similar in meaning or appearance to another in an existing name
- a word or character that is commonly used in UK company names
Registering a ‘same as’ name is only permissible if your new company is part of the same group as the existing company or you have written confirmation that the existing firm has no objection to your chosen name.
2. It must not be offensive
Your proposed company name must not be offensive in nature or include any words that are likely to constitute an offence.
3. You must seek permission to use certain words and expressions
To avoid misleading or harming the public, there are restrictions around the use of sensitive words and expressions in business and company names. Unless you have permission, you cannot include any words or expressions in your company name that:
- suggest business pre-eminence, a particular status, or a specific function (e.g. ‘British’, ‘Institute’ or ‘Tribunal’)
- imply a connection with the UK government, a devolved administration, a local authority, or a specified public authority
- represent a regulated activity
Other restricted words
Your choice of name will be rejected if it gives a false impression that your company is connected with:
- a foreign government or an agency or authority of a foreign government
- an international organisation whose members include two or more countries or territories (or their governments) – e.g. the United Nations or the North Atlantic Treaty Organisation
You cannot register a name that suggests, in the opinion of the Secretary of State, that the company is being set up for fraudulent purposes.
Your company name will also be rejected if it consists of or includes computer code.
4. It must include the correct name ending
If you are forming a private company limited by shares or guarantee, your company name must end with ‘Limited’ or ‘LTD’ (or ‘Cyfyngedig’ or ‘CYF’ if it’s a Welsh company with a registered office in Wales).
If you are forming a public company, your company name must end with ‘Public Limited Company’ or ‘PLC’ (or ‘Cwmni Cyfyngedig Cyhoeddus’ or ‘CCC’ if it’s a Welsh public company with a registered office in Wales).
Exemption from including ‘Limited’ in a company name
Private companies limited by guarantee can apply for exemption from using ‘Limited’ or ‘Ltd’ (or the Welsh equivalent) at the end of their name if their articles of association state that:
- the company’s purpose is the regulation or promotion of art, commerce, science, education, charity, religion, or any other profession that is conducive or incidental to any of those purposes
- the company’s income will be used to promote its purpose
- members will not receive any payment of dividends or return of capital from the company
- if the company is wound up, all business assets that would otherwise be distributed between members will be transferred to another body with a similar purpose or with charitable objects
If you plan to set up a company limited by guarantee, you can apply for an exemption on the company registration application form.
How to check if your company name is available to register
You can find out if your chosen company name is available to register before submitting your company formation application. Simply use the free online Company Name Checker on our homepage, which links directly to the official register at Companies House. Results are immediate.
The checker will also tell you if the name contains sensitive words or expressions requiring prior approval from specified bodies. In such instances, you’ll need to include supporting documentation with your application to support the proposed name (e.g. a letter or email of non-objection from the appropriate specified body).
If the name is available to register, you must ensure that it’s not the same as an existing trade mark. You can do this by checking the UK Intellectual Property Office’s trade marks register.
You should also check whether your proposed company name is available to register as a domain name for your company website and email addresses. This will improve your web presence and make it easier for potential customers to find you online.
A high-value domain name that matches or closely relates to your company name will also enhance your professional image and credibility.
Top tips when naming a limited company
Business names hold a great deal of power, impacting the way in which customers and investors perceive, recall, and connect with different brands.
A great company name can be an effective marketing tool, differentiating you from the competition, adding value to your brand, and appealing to customers in your target market. A bad company name, on the other hand, can prevent your business from even getting off the ground.
You can always change your company name after incorporation, but it’s best to get it right on the first attempt. This will save you any unnecessary hassle.
Here are 5 tips to keep in mind when choosing your company name:
1. Create a unique and memorable name
There’s often a fine line between a name that is absurd and one that is unique in an effective way. Both may be memorable, but for very different reasons and with very different outcomes.
Try to choose a company name that is catchy, relatable, and conveys the purpose or spirit of your business. It needs to appeal to your target market without being too on-trend that it risks becoming dated or irrelevant in a short space of time.
2. Ensure it’s easy to spell and pronounce
Unusual words and creative spelling are often used to make a business stand out from the crowd. However, this can have the opposite effect if the name is too difficult for people to spell and pronounce.
Customers may struggle to recall your company name, it will be challenging to find your website online, and it could put a real dent in word-of-mouth recommendations if people don’t even know how to say it.
3. Keep it short and simple
Short, simple, straightforward. That’s the kind of business name that people can recall and will stand the test of time. If your company name is too long or complicated, people will likely forget, misremember, or dislike saying it.
4. Make it meaningful
It’s not always possible (or necessary) to use a name that describes exactly what a business does or sells. Nevertheless, you should choose a company name that is meaningful and relates to your business. You can be really creative here – but try to avoid anything that’s overly cryptic because it might just confuse people.
If you have to explain the name to everyone, it’s probably too obscure and may not resonate with your intended audience. This could cause considerable damage to your brand image and the success of your business.
5. Leave room for growth
Generally, it’s best to avoid choosing a company name that limits your business to a specific product or location. Whilst it can be an effective way to establish a local presence or highlight what you sell, this type of company name can be restrictive. It could cause issues in the future if you decide to alter your product line or move to a different location.
Thanks for reading
We hope you have found this post useful. Please leave a comment if you have any questions, or contact us if you need help setting up a new company or changing your company name.
For more limited company guidance and small business advice, explore the Rapid Formations Blog.
