Choose the right name for your business
Starting a Business May 6th, 2008
This information shows you how to create the right impact, how to display your business name, take into account whether your business name will be your brand and get your name on the web. It also outlines the detailed rules that you must follow when choosing a company name for a limited company, sole trader or partnership.
Creating the right impression
First rule: never focus on your personal preference, instead consider the customer first! And remember that your business name will be the foundation of your brand. It must work well wherever you use it - on the phone, in your logo, stationery, advertisements, website, uniforms and any other media you plan to use to reach the market.
How you need to decide on a name for your business:
- If your business just about one thing (framing, moving, cleaning, building, etc.) - the name which reflect what your business does is a good idea.
- Include your own name if you are sole-trader, family running partnership.
- Traditional-sounding name, old-fashioned values, modern name? It is just about what your business does. More suitable for LTDs and LLPs.
- Think about the forthcoming events - avoid words or phrases that are likely to date quickly, particularly numbers.
- Check meaning of your proposed name in all major languages if you’re going to trade overseas. In this case - the shorter is the better.
- For businesses which take calls from customers - avoid long names, strange wordings and unusual spelling.
- For businesses which planning to advertise in directories such as the Yellow Pages - think about using a name that appears near the beginning of the alphabet - it will ensure it’s an early entry.
- If you’re focusing on the local market for your product or service, think about using the name of the city or town in the business name.
- Keep your trading name creative, but your corporate name bland. This will give you the flexibility to develop other brands and trading names in the future.
There are also regulations that could affect your choice. Read information on business names at the Companies House website.
Limited company names
If you’ve decided to form a limited company, you’ll need to register your name and other details with Companies House.
Before you fill in the forms it’s essential to check that your proposed name doesn’t break the rules.
Company names - the rules
To make sure your company name is acceptable, work through this list before you send your application to Companies House. Ensure that:
- your company name ends with limited, plc, Ltd or Welsh equivalents - this must not be used anywhere other than at the end of the name
- the name isn’t offensive
- the name isn’t the same as - or very similar to - one already in the register
- the name doesn’t include any sensitive words or expressions - unless you have obtained permission to use them
The full version of these rules is given in the Companies House guidance booklet Company Names. You can call the Companies House Contact Centre on Tel 0870 33 33 636 for a copy - alternatively, you can access the booklet on company names at the Companies House website.
For an explanation of how to register your company name with Companies House and a list of forms you need to complete, see our guide on how to set up and register a limited company (private or public).
Trade marks
It’s a good idea to check that your proposed name isn’t too similar to a word or expression that someone else has registered as a trade mark. This isn’t compulsory, but it could save time and trouble later on.
Sole trader and partnership names
People operating as sole traders or in partnerships can trade under their own names, or choose a different business name.
Sole trader and partnership names - the rules
If you decide to use a business name, there are a few rules to bear in mind. The name must not:
- be offensive;
- include the words limited, plc or equivalent;
- contain sensitive words and expressions, unless you’ve obtained permission to use them.
For the full version of these rules, read a guidance booklet on business names at the Companies House website, or you can call the Companies House Contact Centre on Tel 0870 33 33 636 for a copy.
Is anyone else using your proposed business name?
Before you decide to use your chosen name, it makes sense to check whether it’s already being used. If a sole trader at the other end of the country is using it, there may not be a problem. However, if another local business or a national firm is using it, you should definitely choose a different name.
- Check local phone books, business directories and the Internet.
- Make sure that your proposed name - or something similar - hasn’t been registered by a company. Check registered company names on the Companies House website.
- Make sure that the name isn’t too similar to a word or expression that has been registered as a trade mark. Find out whether your chosen name has already been registered as a trade mark on the UK Intellectual Property Office (UK-IPO) website.
If you’re in any doubt about your business name, get expert advice from your local Business Link.
Sensitive words and expressions
There are some words and expressions that you can’t use in a business name unless you have official permission. These are words that might give a false impression about your business. They are known as sensitive words.
The rules about sensitive words apply to all types of businesses and fall into five main groups:
Sensitive words
| Type of expression | Examples |
|---|---|
| Words that suggest your business is of national importance | British, Irish, Welsh, Scottish, English, National, International, European |
| Words that suggest a special status | Association, Authority, Chamber of Commerce, Chartered, Council, Institute, Society |
| Words that suggest a particular function | Charity, Insurance, Register, Trust |
| Words that suggest a specialised activity | Architect, Chemist, Health Centre |
| Words that suggest connections with government or royalty | Parliament, Government, Royal, Queen, Prince |
Getting further help
These guidelines provide a basic summary of sensitive words. You can find details of sensitive words and expressions on the Companies House website, or call the Companies House Contact Centre on Tel 0870 33 33 636 for a copy. As well as listing sensitive words, this booklet tells you who to contact for permission if you intend to use a sensitive word or expression in your business name.
Displaying your business name
There are a few requirements about displaying your business name - and other details - so that your customers and suppliers know who they’re dealing with. You should not have any stationery printed until you’re certain your proposed name is acceptable.
For a limited company, this means waiting until registration is complete. At this point you’ll receive a Certificate of Incorporation, showing the company’s registered name and number.
A sole trader or partnership must go through the checks required for sole trader and partnership names and take expert advice if necessary.
Displaying a limited company or limited liability partnership (LLP) name
- Your company or LLP name must be clearly shown outside every place of business - even a director’s or partner’s home if that’s where the business operates from.
- Your company or LLP name must be included on all business letters, electronic business communications, orders, payments, invoices, receipts and other business documents.
- Business letters, external emails and order forms must also show the company’s or LLP’s registered address, number and place of registration.
The Companies Act 2006 introduced particular rules for displaying the company’s or LLP’s details on its website, which must now show:
- the full name of the company or LLP
- the registered office address of the company or LLP
- the registered number of the company or LLP
- the place of registration of the company or LLP
- if the company or LLP is being wound up
For a full version of the rules on displaying your company details, see the guidance notes on company formation on the Companies House website, or call the Companies House Contact Centre on Tel 0870 33 33 636.
Displaying a sole trader or partnership business name
Your business name, your own name, or the partners’ names and business address must be clearly displayed:
- wherever you run your business and deal with customers or suppliers
- on all business letters, orders, payments, invoices, receipts and other business documents
For a full version of the rules on displaying your business details, see the guidance notes on business names on the Companies House website, or call the Companies House Contact Centre on Tel 0870 33 33 636.
Displaying a name online
If you are an online business, you must display:
- general information about your business - including business name, address, email address, VAT registration number (if applicable)
- details of any relevant professional body that you belong to or any authorisation scheme to which your service is subject
Getting your name on the web
Even if you are not intending to create a website for your business immediately, you’ll probably be using email and want to have a presence on the web at some point in the future. This could be a single screen advertising your company and giving contact details, or it could be a site that allows customers to browse through products, place orders and make payments online.
Domain names
The website address, for example my-new-business.co.uk, is known as a domain name. For most businesses based in the UK, a name ending with .co.uk is suitable. Your email address will normally include this name, for example enquiries@my-new-business.co.uk.
Businesses and individuals that meet certain European Community (EC) criteria can apply for the new .eu domain extension - for example www.my-new-business.eu.
If your business is active in EC countries, the .eu domain name can help you market your company as a pan-European business. There is a phased registration process. Find out how to register a .eu domain name at the European Registry of Internet Domain Names (EURid) website.
To reserve a domain name for your business, you need to register it through an agent, who will charge a small annual fee. You should do this as soon as possible - even if you’re not going to use your domain name straight away.
Registering your .uk or .com domain name
- Decide on a suitable domain name for your website - if you are unable to use one that exactly matches your business name. You can use numbers as well as letters. Hyphens can be used to separate words - but you can’t include spaces, full stops or other punctuation. It’s a good idea to have a few alternative names in case your first choice has already been taken.
- Check whether the name is available - the official registry for UK domain names is Nominet. Check whether your chosen domain name is available on the Nominet website.
- Register the name - this is a simple process which you can carry out online with any registration agent. There are hundreds of registration agents to choose from - a good starting point is Nominet. Find out about choosing a registration agent at the Nominet website.
Tags: branding
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