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 a Government body without the required permission. There are also sensitive and regulated words and expressions which may require approval. See the Companies House guidance on company names.

Your proposed company name generally cannot be the ‘same as’ an existing name on the register. For example, Plum Technology Ltd is treated as the same as Plum Technology & Company Ltd.

There are also separate ‘too like’ rules. If somebody complains that your company name is too similar to an existing registered name and Companies House agrees, you may have to change it.

You should also check for existing trade marks. Registering a company name at Companies House does not give you trade mark protection or necessarily mean that you are free to use that name commercially.

Most private limited companies must end with the words ‘Limited’ or ‘Ltd’, although a company registered in Wales may use the Welsh equivalents ‘Cyfyngedig’ or ‘Cyf’. There are limited exceptions to the requirement to use ‘Limited’ or ‘Ltd’.

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 later. The current Companies House fee is £20 for a standard online change of name, or £85 for the same-day service.

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 may need to think again.

You should also search the UK trade mark register. A company name being available at Companies House does not mean that there isn’t an existing trade mark which could prevent you from using it.

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).

Company name or trading name?

Your registered company name and the name you trade under do not have to be the same.

A company can use a different business or trading name, although separate rules apply. In particular, a business name must not use ‘Limited’ or ‘Ltd’ and must still comply with the rules covering sensitive words and trade marks.

If you trade under a different name, your registered company name must still be shown on certain business documents, websites and at relevant business premises. See our guide to displaying your limited company name.

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 online

Visit our incorporation partner, 1st Formations, for more helpful guidance or to set up a company limited by shares online.

The Companies House digital incorporation fee is currently £100, so check the formation agent’s current package price before applying.