Legal Considerations of Choosing a Business Name in the UK
When forming a business in the UK, one of the first and most important steps is selecting a suitable business name. Not only does it shape your brand’s identity, but it also needs to meet specific legal requirements. Failure to adhere to these rules could lead to costly delays or legal disputes down the line. This post hopes to walk you through some of the key legal considerations for business name registration in the UK.
Why is Your Business Name Important?
Your business name is more than just a label; it represents your brand and creates the first impression for potential customers. It reflects your company’s values, products, and services. A strong business name can set you apart from competitors and help build brand recognition. However, alongside creativity, it’s essential to ensure your business name complies with legal standards.
Legal Requirements for Business Name Registration in the UK
In the UK, business name registration is governed by the Companies Act 2006 for limited companies, and the Business Names Act 1985 for sole traders and partnerships. When choosing your business name, consider the following legal rules:
1.Uniqueness
Your business name must be unique. This ensures no other company or entity is using the same or a confusingly similar name. If your desired name is already registered with Companies House, you’ll need to choose another. You can check name availability on the Companies House Register or use our name check service to verify.
Tip: Even if your chosen name is available, check that it doesn’t conflict with an existing trademark. You can search for registered trademarks on the UK Intellectual Property Office (UKIPO) database.
2. Avoid Customer Confusion
Your name must not mislead the public or suggest links with other businesses that don’t exist. Using a name that’s too close to a competitor’s can lead to accusations of ‘passing off’ or trademark infringement.
Good to know: You could face legal action if customers are misled into thinking your business is connected to another company. If in doubt, consult a legal adviser or check for registered trademarks at the UKIPO.
3. Be Aware of Prohibited Words and Phrases
Certain words and expressions are outright banned. For example, you can’t imply your company has official status, represents the Crown, or is a national authority if it isn’t. Examples of prohibited words include “Royal”, “British”, and “National”.
Check here: The government provides a full list of sensitive and prohibited words and expressions you can’t use without permission.
4 Get Approval for Sensitive Words
Some words aren’t banned but do need special permission, often because they relate to regulated industries or could mislead the public. Examples include “Bank”, “Insurance”, or “Charity”.
What to do: If your name includes a sensitive word, you’ll need to get consent from the relevant regulatory body. For example, using “Charity” in your name may require approval from the Charity Commission or the Financial Conduct Authority (FCA) for financial services terms.
Before applying, read the Companies House guide on sensitive words to check whether your name requires consent and how to apply for it.
