How to choose a good name for your new limited company

Choosing a name for your limited company is a big deal. It will be the name that underpins everything you do in your business. It will carry your reputation and guarantee how memorable you are to future customers.

Therefore, it is important that it is given plenty of thought. Legal considerations also need to be taken into account.

We have been providing online business advice for almost 20 years. Using our experience, here are some essential tips for choosing a name for your new company.

Firstly – legal restrictions on company names

Before you start, you should be aware that Companies House, the registrar of companies, has various restrictions on what you can name your company.

This is to protect the identity of existing companies on the register, and to prevent businesses ‘passing off’ as something they’re not – such as implying that they have certain skills or qualifications.

Unsurprisingly, you cannot use offensive wording, use certain types of punctuation, or imply a connection with any Government body. Nor can you use words which are regulated (see a full list here).

Your proposed company name cannot be the ‘same as’ an existing name, nor can it breach trademarks. For example, Richmond Developments Ltd is the ‘same as’ Richmond Developments & Company Ltd.

All companies limited by shares or guarantee (the vast majority) must end with the words ‘limited’ or ‘ltd’ (although Welsh companies may elect to use the suffices ‘cyfyngedig’ or ‘cyf’.)

Consider potential copyright or intellectual property issues too. Sometimes companies register words or phrases as trademarks, which may not appear on Companies House but can still restrict your use of certain names or slogans.

Have you thought about the future?

Although you may be very focused on the present, it’s also important to consider how your company will perform over time.

There may come a day when you want to sell it – if you make the name too personal or tie it into your own name, you may find it harder to sell.

Or you may have to sell the business rights to your name, which could affect other work you plan to do in the future.

In the future, you may want to expand your business. If you make your name very specific to start off, for example, by calling it Pricedrop Plumbing Ltd, this could limit you should you wish to add to your services with heating or tiling, etc. The name you opt for should be broad enough that you can cover expansion and sales.

You can change your company name anytime via WebFiling, or by submitting Form NM01 to Companies House.

However, as your business becomes more established, it becomes more and more disruptive to do so, which is why it’s worth spending time before incorporation deciding upon a suitable name.

When choosing a name, consider whether it could stand the test of time. Avoid trendy buzzwords or terms that might feel outdated in a few years. Opt for something timeless and versatile, especially if you want your business to appeal to a broad audience.

Do your research

Before settling on any particular name, research Google and use the Companies House Name Checker tool.

Look to see if any other businesses are using your proposed names – and also, if they’re in the same industry. This may be a barrier to entry (perceived or otherwise) as you might find it harder to make a name for yourself against the competition and could also confuse prospective customers.

When customers go to another business by accident, this could inadvertently lead to your competitor gaining some of your business.

If a business already registered at Companies House has the name (or a similar name) to your proposed name, you will clearly need to think again.

Consider how your business name represents your brand and what associations it has. The word may mean different things in different industries (and countries, if you are planning on doing business abroad too).

We recommend you ask colleagues, family and friends for their views on your proposed company name and/or brand name (often they are the same).

Is your domain name also available?

It’s also worth checking if the URL is available for the business name you’re after.

You should always try to secure the relevant domain name while registering your limited company name. This helps secure your online web presence and adds credibility to your company.

Most businesses have a web presence now and people will expect to be able to type your business name into their search bar and find your business.

The .com and .co.uk remain the most popular domain names, so if you can secure both, this will protect your company’s identity.

Have a look on one of the big domain name providers’ sites, such as GoDaddy (we use them for all of our domains).

Form a company today for just £52.99

Visit our incorporation partner, 1st Formations, for more helpful guidance or to set up a company limited by shares online. Prices start at just £52.99, which includes the Companies House filing fee of £50.00.