Last time we looked at the pros and cons of trading through a limited company . If you decided that yes trading through a limited company is right for you and your business then we now turn our attention to what your next steps are in forming your limited company – namely choosing a limited company name!

How important is the limited company name?

The choice of limited company name in many ways isn’t massively important! What we mean by limited company name is the name of the company registered at Companies House. Your limited company comes into existence by registering it with Companies House, which is the regulatory body for the registration of companies and the maintenance of company records. In order to register you firstly need a unique business name!

 This limited company name is not necessarily  going to be the same as the trading name which is the name that your potential and actual customers know you as. Furthermore it is a name that can be changed in the future if necessary. However, in order to register a company with Companies House you need to pick a  name… so in that respect, at least for administrative purposes, if nothing else it is important to select a suitable name.

How do I know what name I can use?

You can check if the limited company name you want to use is available by searching the register at Companies House to see if it’s already been taken. With naming a limited company there are a few conventions you need to follow, such as including ‘ltd’ or ‘limited’ in the name and not picking anything rude, offensive or otherwise sensitive and of course not having a name too similar to others.  It’s worth checking Companies House’s guidance on choosing a company name to ensure the name you choose will be accepted.

Other than needing to comply with the rules of Companies House the choice of business name you want to use is really up to you. You will likely want to factor in what domain names are available as well so your website address is consistent (assuming you are not planning to trade under a different ‘trading name’). You can check available domain names using 123 Reg or similar.

What else should I consider when choosing a name?

In coming up with a name it is worth considering the long term plans, for example if you eventually want to expand into providing a range of service/product offerings then restricting the company name to one narrow area might not be ideal.

For example, say you are planning to start a T Shirt printing business but want to expand into other offerings in the future you might:

• Use the trading name ‘Tilly’s T Shirts’
• But the limited company  name could be ‘Tilly’s Fashion House Limited’

So as you expand into other lines/offerings they neatly fit under the same limited company.

Just bear in mind that with trading names that you need to be aware of any trade mark restrictions on that name. Also have a google and ensure that the market isn’t flooded with other companies with that trading name – so you stand out and people are clear what it is you do.

I’m still not sure!?

If you are really stuck on what to call the company think about perhaps using part of your name, some descriptor words of the type of service  you will offer or even use a name generator to give you some inspiration.

Don’t get too hung up on the name as already discussed you are able to change the limited company name in the future. so you do have an opportunity to rethink it further down the line but it is a first step into limited company ownership.

Next time…

Now you have all the information you need to  choose a business name next time we will look at the next steps to registering your limited company.