Choosing a company name
Choosing a company is a critical step in the development
of your future business. Take some time to consider the
points below before deciding on your company name.
(Abridged version of regulations. If in doubt call our Business
Advisors)
Call us on 0800 328 74 94 and
see if the company name you want is OK. Alternatively, fill
in the form to your right and we will contact you with the
results of our search.
Can I choose any name I want for my company?
Yes, but there are some exceptions:
- If it is 'the same as' an existing name. A name that sounds the same as another may be accepted if spelt differently but may be considered as 'too like' another if an objection is lodged after the second company is incorporated.
- If it is offensive.
- If its use would be a criminal offence.
- If it contains sensitive words and expressions prescribed by regulations or suggesting connection with government (see below).
- The following words cannot be included anywhere within the company name;
- ‘investment company with variable capital’
- ‘open-ended investment company’
- ‘limited liability partnership’
- ‘SE’
- The words ‘limited’, ‘unlimited’, ‘public limited company’ or ‘community interest company’ can only be used as a suffix and not anywhere else within the name.
- Unless the company is a commonhold association, the words ‘commonhold association company’ cannot be at the end of the company name.
- Unless the company is a community interest company, the company name cannot end with ‘community interest company’ or ‘community interest public limited company’.
- Please feel free to call us for assistance and suggestions that will be accepted by Companies House.
What are 'Sensitive Words and Expressions'?
British, National, Great Britain, United
Kingdom, England, English, Scotland, Scottish, Wales, Welsh,
Ireland or Irish - if the words are used as a suffix,
they are normally allowed. The initials 'GB' or 'UK' do
not require approval.
European - will not be approved
if they imply unjustifiable connection with EU.
International As prefix major
activity must be overseas trading. As suffix, company activity
must be in 2 or more overseas countries.
Association, Federation or
Society
Authority, Board or Council
Institute or Institution
Assurance, Assurer, Insurance, Insurer, Re-Assurance etc,
Benevolent, Foundation, Fund
Chamber of Commerce, and/or Trade
and/or Industry and/or
Training and Enterprise Charter
or Chartered Charity
Chemist or Chemistry
Co-operative Friendly Society or
Industrial and Provident Society Group
Holding(s) - For holding company defined under section
736 of the Companies Act 1985.
Patent or Patentee
Post Office
Register or Registered
Sheffield - the Company of Cutlers in Hallamshire
is consulted.
Stock exchange - normally refused
unless there are special circumstances.
Trade Union - normally refused
unless they conform to trade union legislation.
Trust - be non-profit distributing
Financial Trust or Investment Trust
Pensions or Staff Trust
Unit Trust
For the latest information on company names, please use
the following link - Company
Name Advice
2. Business Name Registration
In 1985 the Register of Business Names was abolished and
the new Business Names Act 1985 specified requirements for
the use of business names and disclosure of ownership. This
was subject to minor amendments by the Company and Business
Names (Amendment) Regulations 1992 and 1995. Now, although
businesses are required to disclose their ownership the
only registration requirement is for a limited company.
3. Approval of Names
If a business trades under a name other than that of the
owner, or owners, or the name contains certain words, the
name may require the written approval of the Secretary of
State. Controlled names are set out in statutory regulations.
When a business changes hands, the new owner must seek further
approval to use a name within 12 months of taking over the
business. If a name was registered under the Registration
of Business Names Act 1916 or gained approval under the
Companies Act 1981, additional approval is required only
when business ownership changes.
4. Disclosure of Ownership
All businesses, whether a sole trader or a partnership,
must disclose the name and contact address of the owner
or owners, in writing, to anyone with whom business is done,
if they wish to know it. These details must be shown legibly
on all business letters, orders, invoices, receipts and
demands for debt. The information must also be displayed
at all premises where business is carried out and where
customers and suppliers are dealt with. There are no requirements
on how this information is presented, as long as it is clear
and prominent. There is no need to disclose the owner's
name if the business is known by the owner's surname, e.g.
'W. Smith'. If the business is called 'W. Smith Plumbing',
then the owner's name would have to be shown.
For a partnership where the name includes all the partners'
names (with or without initials), there is no need to disclose
the owners' names again. Where there are more than 20 partners
they do not have to be listed on business documents. However,
the address of the principal place of business from which
a list of partners can be obtained must be supplied. You
cannot list some of the partners' names and not others,
it must be all or none. If another word is used in the name,
then the owners' names must be disclosed separately.
Companies must comply with the disclosure requirements if
they trade under a business name different to the full corporate
name of the company. Companies must also disclose their
registered office address (which may be different from their
trading address), registration number and place of registration.
A registered company must display its name outside every
place of business, in a conspicuous position and in easily
legible letters.
5. Exemption from Using the Word 'Limited'
Certain types of companies can gain exemption from including
'limited' in their company name. These companies must be
private companies limited by guarantee. In addition, they
must satisfy all of the following conditions:
- The aims of the company must be the
promotion of commerce, art, science, education, religion,
charity or profession.
- The memorandum
or articles of association must state that:
- Any profits or other income are to
be spent in promoting the company's objectives.
- No dividends are to be paid to members.
- If the company is wound up, all the
assets are to be transferred to another body that either
has similar objectives or promotes charity.
6. Failure to Comply
Failure to comply with these requirements may result in
fines and the loss of certain legal rights, e.g. you may
lose the right to enforce contracts which have been entered
into without compliance to the Act.
Confused?
If this has left you feeling a little confused please call
us and one of our Company Advisors will be happy to check
your preferred name and offer any other assistance.
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