How to register a company name (and what that actually means)

From turning your passion into profits to taking ownership over your own schedule, starting a business is an exciting endeavour. But before you begin reaping its rewards, you need to take care of less glamorous tasks like registering your company name.

The sky’s essentially the limit when it comes to choosing your company name, but the rules you need to follow will depend on your business structure. Your chosen structure will also determine how you register your chosen name, with limited companies having to file their name with Companies House, and sole traders and partnerships registering directly through HMRC.  

Understanding the ins and outs of company name registration can be confusing, especially for first-time entrepreneurs. To help demystify the process, this guide outlines which rules and legal obligations your business type should follow, before walking you through the registration process in eight simple steps.

Business Name vs. Company Name vs. Trading Name

A business name, company name, or trading name might sound like one and the same – but there are clear legal and operational distinctions between the three.

A Company Name is the official, legal name that limited companies or Limited Liability Partnerships (LLPs) use to register with Companies House. It must end with “Limited” or “Ltd” for Limited companies, and “PLC” for Public Limited Companies. 

A Trading Name is an unregistered name used by businesses for marketing purposes, and is distinct from its formal company name. Finally, a Business Name is a broader, catch-all term which can refer to a company name, unregistered name, or simply any name under which any business operates. 

Registering a business name as a sole trader or partnership

If you’re a sole trader or a partnership, you won’t need to register your name with Companies House. 

However, you will need to register as a self-employed business with HMRC for legal and tax purposes. Fortunately, this process is simple and only takes a few hours, while obtaining your Unique Taxpayer Reference (UTR) can take up to 15 days, depending on whether you register online or by post.

You can use a trading or business name to register with HMRC, as long as you adhere to these GOV.UK guidelines:

• Don’t include “Ltd” if you’re not a limited company.
• Avoid using offensive or misleading language.
• Don’t make the name too similar to trademarked business names.

It’s important to note that registering with HMRC won’t automatically give you rights to your business name. To prevent other companies from using a similar name, you’ll have to register it as a Trade Mark with the UK Intellectual Property Office. 

Planning on starting a business as a one-man show? Learn how to become a sole trader in simple steps. 

Registering a company name as a limited company

For those forming private limited companies, registering your company name with Companies House is necessary for legal compliance. 

This registration can be done online, and it typically only takes a couple of hours. Just make sure you have all of your essential information at hand before starting, to avoid making errors or prolonging the process.

Companies House automatically protects other newly registered limited companies from using a similar or identical name. However, it doesn’t prevent non-registered companies, like sole traders or partnerships, from operating under similar trading names. 

Therefore, we’d also recommend registering your chosen name as a Trade Mark with the UK Intellectual Property Office in addition to Companies House, to gain the exclusive ownership over your chosen name. 

Learn more about the ins and outs involved with setting up a limited company in our in-depth guide. 

How to register a company name in eight steps

If you’re setting up a Limited Company, you’re required to register your company name. With the right guidance, the process doesn’t need to be a headache. Here’s how to secure your business’s identity legally, from start to finish. 

1. Check the company name

First, you’ll need to check that the company name you want hasn’t already been taken.

You can do this by using the Company Name Availability Checker to make sure your ideal name isn’t already being used or is too similar to another company.

If the name is available, simply click the link below to register it.

Your registered company name doesn’t need to be the same name you trade with; the latter is known as your “business name”. For example, a company might be registered as “EXAMPLE Enterprises Ltd”, but may choose to operate and market itself under a different name, such as “EXAMPLE Solutions”. 

This allows businesses to create a brand identity that resonates more with their target audience, while still complying with legal requirements by having a different registered name.

What can my company name not include?

Be careful about using punctuation, special characters, or words commonly found in UK company names. For example, symbols like “@” or “#” can make your name difficult to process or register.

Words like “Company”, “Services”, or “Solutions” are also widely used in business names, so it’s important to choose a unique name that can help you stand out and avoid potential confusion with existing companies.

Choose your name carefully; avoid anything too similar to existing businesses, especially in your industry. If your name is too similar to that of another business, it could cause confusion or even lead to legal trouble, especially if the other business has the name trademarked.

2. Decide on an official company address

If the company name you want is available (for now), then you need to register it with a UK postal address to have somewhere for official notifications to be sent.

Simply create an account (email, name and password) on Companies House, and then you’ll be prompted to enter your chosen company name and address.

What should I use as my business address?

This address must be in the same country you registered your business in, e.g. if you registered in Wales, your address should be somewhere in Wales.

Your company address will be publicly available. If you want to keep your home address somewhat private or separate, you may want to register your company with whoever will handle your company accounts and company tax. For example, your accountant or financial advisor.

3. Choose a SIC code for your company

Next, you’ll need to choose a “business activity”, meaning you’ll need to state what your business does by assigning a Standard Industrial Classification (SIC) code.

You’ll first see a dropdown with the main category options (for example, 11xxx – Manufacture of beverages). After selecting one, a second dropdown will appear with more specific trade descriptions to choose from.

You can add up to four SIC codes per company, and you can change them at a later date.

4. Appoint a company director or directors

You’ll need to appoint at least one company director. The director is the person who is legally responsible for running the business and ensuring that reports and company accounts are prepared. The director must be aged 16 or over and cannot be disqualified from being a director.

Each director must have two addresses associated with them:

• A publicly available official service address.
• A residential address which will not appear on the public record.
• If the service address is the same as the company address, you’ll need to add an alternative residential address.

Finally, you’ll need to confirm that the person named has agreed to act as a director by attaching a letter of consent to your application form.

5. Outline your proposed company share structure

Limited companies are made up of shares, and you will need to provide information about these shares when registering your company; this is known as a “statement of capital”.

In this section, you’ll need to list the number of shares for each type. There are generally nine classes (or types of shares), each with different rights and benefits. These include:

• Ordinary Shares: the most common type that give shareholders voting rights and dividends.
• Preference Shares: shareholders receive dividends before ordinary shareholders but typically without voting rights.
• Cumulative Preference Shares: if dividends are missed, they accumulate and must be paid out before any dividends to ordinary shareholders.
• Redeemable Shares: These can be bought back by the company at a future date.
• Non-Redeemable Shares: On the flip side, these cannot be bought back by the company.
• Convertible Shares: These can be changed into another type of share (usually ordinary shares) under certain conditions.
• Non-Voting Shares: This does not give the shareholder any voting rights.
• Deferred Shares: Dividends are paid only after shareholders have received theirs.
• Alphabet Shares: These allow the company to assign different rights (e.g. dividend payments or voting rights) to different groups of shareholders.

There is no maximum amount of shares, and you can apply any value to an individual share, as well as noting the specific rights each share has (e.g. full rights in the company with respect to voting, dividends and distributions).

Once you’ve determined the aggregate nominal value (i.e. the initial value of the company), you’ll have to confirm if there is any money left unpaid to the company for this nominal value. If no amount is left unpaid, simply enter zero.

6. Choose your company shareholders or Persons of Significant Control

For limited companies, identifying your shareholders (or ‘subscribers’) is essential, as they own the company’s shares. You’ll need to provide their address for the public record and three security details for an online signature.

Crucially, under UK law, anyone holding over 25% of a company’s shares or significant influence must be registered as a Person with Significant Control (PSC) on the public register. This has been in place since the introduction of the PSC register in 2016.

Most companies will have at least one person with significant control or influence over the company, and you’ll need to select the nature of that control. For example, ownership of shares, voting rights and/or the right to appoint or remove the majority of the board of directors.

As with step four, you’ll need to confirm that each subscriber knows that their details are being provided as part of this company formation.

7. Sign a statement of compliance

As company formation is a legal exercise, you will need to confirm that the requirements of the Companies Act as to registration have been adhered to, and that you have viewed and accepted the Memorandum of Association relating to the rules of running a business.

Don’t worry – this step is as simple as ticking a few boxes.

8. Pay a company formation fee

Unfortunately, nothing comes for free in this world. As a final step, you’ll have to pay a fee to register your company online.

How much does it cost to register a business name?

The fees for registering and incorporating your business or limited liability partnership (LLP) are £50 online and £71 by paper, while same-day incorporation via software costs £78. 

If you have a change of heart, changing your company name will cost an additional £20 online, or £30 by paper. 

You can also check the Companies House fees page for more information.

Don’t forget that once you’ve completed your company registration, you’ll also need to:

• Open a business bank account.
• Register your company for corporation tax within three months of trading.

Conclusion

Registering your business name is an exciting first step toward turning your entrepreneurial dreams into reality. By following these eight simple steps, you’ll have your company officially registered and ready to start operating.

Just remember to check the availability of your company name, choose the right SIC code, appoint a director, outline your share structure, and provide all the necessary details for shareholders and Persons with Significant Control. After that, you’ll just need to pay a registration fee and you’re all set!

Once everything is in place, you can focus on growing your business, building your brand and working towards long term success.