Business Names
What’s in a name?
When setting up a new company or business, lengthy consideration is often given to the name and the impact it can have on those who will use the company’s services or products. However it is equally important for consideration be given to checking the availability or use by other companies of a similar name and whether the confusion between the two might impact on the company’s business in the future.
As a starting point it is often worthwhile to check the Registrar of Companies for current and dissolved companies’ names to ensure that the name you wish to use is available and that there isn’t another company with a similar name which may give rise to confusion by customers or suppliers to the business.
What words can you use?
A company’s name cannot be exactly the same as another registered company’s name. If a third party company is already registered with the name you wish to use, you will have to think again.
The name also cannot be similar to another registered company’s name. Consideration is given to whether the names are alike or may be confused.
A name will be considered the “same as” another name where the only difference is:-
• Punctuation; or
• a special character, for example the ‘plus’ sign.
It may be possible to use a similar name where companies are part of the same group. In this situation, written confirmation would need to be sent to the Registrar of Companies with the incorporation or name change documents setting out the connection and consent of the other group company to the use of the desired name.
Companies are also prohibited from using names which:
• contain a ‘sensitive’ word or expression;
• suggest a connection with government or local authorities; or
• are offensive.
In certain circumstances, consent to the use of a “sensitive” name may be granted by the Secretary of State or government official with whom the name is associated. If consent is granted, this must be sent with the incorporation or name change documents to the Registrar of Companies.
Do you have to use “limited” in your name?
Most private limited companies in England must end in either “Limited” or “Ltd”.
Certain companies can though apply to leave “limited” out of the name. For example, a charity or sports club which operates for the benefit of others, is limited by guarantee and does not pay any return to its members.
What is a "business name"?
A business name is a name used for trading which is different to the company’s registered name. For example, Nexus Solicitors Limited uses the trading name “nexus”.
Business names must not:
• include “limited”, “Ltd”, ‘limited liability partnership, “LLP”, “public limited company” or “plc”;
• be the same as an existing trade mark; or
• contain a “sensitive” word or expression (unless permission has been given to use it by the relevant authority).
Business names are not registered with the Registrar of Companies, but can be protected if registered under a trade mark. Registration can prevent other people from using the same name. Care should, therefore, be taken when choosing a business name to check and ensure it will not breach an existing registered trade mark. If another party has already registered a trade mark, you cannot use their trade mark for your own business name. Using a business name which is the same or similar to an existing registered trade mark can cause confusion and, in some cases could result in legal action being taken.
I have chosen my name, now what?
Once you have checked and chosen a name which is available, not similar to an existing name, and does not require consent (or the appropriate consent has been obtained) you should arrange for your company to be incorporated or for a name change resolution to be filed with the Registrar of Companies as soon as possible to ensure another party does not take the name.
If also using a business name you may wish to consider taking advice on having the name registered as a trade mark to prevent other parties from using the same or a similar name.
If any assistance is required please do not hesitate to contact Leilah Ashurst on 0161 819 4907 or at LAA@nexussolicitors.co.uk.
Any and all information which is contained in articles on this website is general information only, and does not constitute legal or other advice. Nexus Solicitors Limited is not responsible for any loss which may arise from the use or reliance on the information on this site. If any topic is of interest to you, please contact us and we will be able to assist and advise you.