How to Reserve a Company Name in the UK

Ryan Patrick

• 7 min read
How to Reserve a Company Name in the UK

With a business idea in mind, the question of how to reserve a company name in the UK may linger in your mind often. But what is reserving a company name? It means registering a non-trading Limited Company at Companies House.

To reserve a company name, you must form a limited company under the same name.

What does reserving a company name mean to the business owner? , no one can create a Limited Company name you have reserved. Name reservation is ideal for sole traders seeking to protect their name, yet they don't want to function as a Limited Company or their business idea needs to be ready to launch.

Let's discuss how to reserve a company name in the UK and the measures to ensure the trading name you wish for is secure for your new company.

Search for Available Names

Although non-trading companies aren't in active business, they still need a list of directors (names and addresses). Plus, they must file their annual reports.

Before you register your new company name, you should first search to see if it's available and not in use by another person. Searching for name availability saves you time down the line when you're ready to incorporate and trade.

Besides name availability, your business name shouldn't have offensive or sensitive words, which Companies House doesn't allow. Here's an updated list of some sensitive words and expressions that the Secretary of State must approve to use in a business name.

  • Accounts Commission for Scotland - You must provide a letter of non-objection from Audit Scotland.
  • Accredit / Accreditation / Accredited / Accrediting - Ensure you have a non-objection letter or email from the Department of Trade for Product Safety and Standards. To speed up your quest, ensure the letter or email or letter is visibly marked to get the attention of the 'Accreditation Policy Team.
  • Audit commission - Using this expression, or anything close to it, implies a link to activities carried out after the other by any of these bodies.
  • Cabinet Office
  • National Audit Office
  • Financial Reporting Council
  • Public Office Audit Appointments
  • Adjudicator - Using this word implies a company can make decisions akin to a court of law, a judge, an administrative tribunal, government officials, and an official ombudsman. Your application should come alongside a non-objection email or letter from an appropriate agency.
  • Archwilydd Cyffredinol Cymru - Using this expression or anything similar in the name you want to resolve is only possible if you provide a non-objection letter from the Wales Audit Office.

Forming a Limited Company

Under limited companies, multiple business structures include;

  • Private companies limited by shares
  • Private companies limited by guarantee
  • Limited liability partnerships Public limited companies

The type of company you form is registered under Companies House, and no one else can form a company with the same name. But, shares limit the most popular private company, and you need the following to form it.

  • A unique company name
  • A registered office address within the UK
  • Information about company director(s) and secretaries (if any)
  • Shareholder details - Names, share allotment
  • Information on People with Significant Control (PSC) of the company

To form a private company limited by shares, you only need one person. The sole trader acts as the director, PSC, and shareholder. But, it doesn't have to be so since multiple people can be part of the company.

How to Preserve a Company that Doesn't Trade

Once you find a suitable name for your upcoming company, reserve and maintain it by doing the following to ensure the company is non-operative and compliant.

Tell HMRC

After company formation, you get a letter from His Majesty's Revenue and Customs (HMRC) at the company's registered office and Unique Tax Reference (UTR).

Use the details in this letter to write back to HMRC, informing them that the company will be non-functional until further notice.

File an Annual Confirmation Statement

Like all limited companies, you need to file a confirmation statement with Companies House annually. The report provides detailed basic information about a company, which is required for both trading and non-trading entities.

File Dormant Company Accounts Annually

All companies must file annual accounts where the report details the financial information of a company. Non-trading companies file for particular accounts called dormant company accounts.

Further Steps to Preserve Your Company Name

Here are more ways to ensure the company name you choose for reservation is safe.

Register the Domain Names

Although you'll not be trading yet, you block anyone from establishing an online presence that's similar to your business name. How do you counter this? Register a domain with the same name to ensure no one can use it.

Register a Trade Mark

Lock down your company name by registering it as a trade mark to get the full protection of the law. Your reserved company name can still be used by someone else as part of a band name even after registering with Companies House.

Form Your Company with Incorpuk Today

At Incorpuk, we will help you file accurate information when you register your company through us. We will help you with incorporation articles, a registered office address, and all you may need to register your company in the UK. Contact our team if you seek any information; we will gladly assist.

Choosing a Company Name

You may discover that the name you choose as a business name is already registered by someone else or one is very similar.

Any term that's 'too similar' should be avoided as it is deemed to confuse the public.

For that reason, you can't register a name that's similar to another or the same. However, you can do so if you get permission from the existing business or if your company will be part of the same group.

You must also ensure that;

1. The Name You Use Isn't Offensive.

Get permission if your company name includes 'sensitive' words.

Your business name doesn't suggest an association with a government or official body, local authority, or the Royal Family.

2. Restrictions for Choosing a Company Name

Before choosing a name, read further guidelines on selection from Companies to understand the rules and limitations surrounding it.

Choosing a name that's too similar to another means you must change it if an existing business or trademark launches a complaint. Your business name should include "Limited/Ltd" or Welsh equivalents (Cyfyngedig' and 'Cyf) if it's registered in Wales.

"Same as Names" are considered so if the name bears;

  • Same punctuation marks
  • Specific special characters like a + sign
  • A word or character with a similar meaning to an existing name
  • A commonly used word or character in the UK company names.

"Too like" names are problematic especially when someone complains and Companies House assents a name registered before yours is "too like".

3. Trading Names

Besides your registered name, you can trade with a different business name as long as it doesn't include 'limited', 'Ltd', LLP, 'limited liability partnership, 'PLC' or 'public limited company'. The business name should also not have any 'sensitive' word or 'expression' unless you're permitted.

4. When NOT to Use Limited in Your Company Name

There are instances when you don't have to use 'limited' in your company name. These instances apply to any company registered as a charity or limited by guarantee and if your company articles of association state so. Here are more scenarios when not to use Limited on a company name.

  • A company promotes commerce, science, art, charity, education, any profession, or religion.
  • Any company that can't pay its shareholders dividends.
  • A company that asks shareholders to make contributions towards company assets if they're wound up in the course of their membership. Or within a year when they stop being shareholders.

Reasons to Reserve a Company Name

There are a number of reasons as to why you may consider reserving a company name;

  • You plan to start a new business in the near future, and you reserve a business anime in advance.
  • A single trader or member of a partnership wants to protect an existing business name.
  • You plan to review your existing company name in the near future, and you're securing a single or multiple company name in advance.
  • It's a pre-emptive measure to prevent future disputes that may lead to legal action in regard to a trade mark that you have registered.
  • To secure a domain name.
  • To set up a dormant company.

Although you may set up a limited company to reserve a name, it may not be enough to stop others from using it in other ways.

Is Name Reservation Worth It?

Once you're sure your chosen company name is available, but you worry that someone else might launch a new business before you, company formation is your best bet to keep it.

The majority of new business owners prefer to hold on about registering until they are completely ready to start and register a business with Companies House.

But, if you worry that your preferred company name is at risk, it may be rewarding to jump the gun and register the business name to retain it.

Reserving a name is helpful if you're already developing your company trademarks and company logo in pursuit of launching your business.

Frequently Asked Questions

Can you register a company name without trading in the UK?

You can register a non-trading company in the UK as you prepare to set up a new business. Register your company at the Companies House website and reserve a business name as you prepare to launch your company.

How much do you pay to set up a company in the UK?

You pay 12 GBP to register a company in the UK, and it will take a few hours, unlike before. After registration, you can launch a new business immediately or make it dormant by informing HMRC of its inactivity. The company remains dormant until you decide to trade with it.

Are non-UK residents allowed to register a business in the UK?

A foreigner can register a business in the UK through the Companies House as an overseas company. Those who have a company outside the UK and want to launch a branch in the country must compete from OS IN01 and submit it to Companies House. A foreigner will pay £20 to register a company in the UK.

The Bottom Line

After incorporation, a limited company is ready to trade. However, if you intend to wait to begin trading, you can make the company dormant until you're ready. Registering a company is how you reserve a company name in the UK, and you can be confident about planning your business ideas. When ready, all you have to do is notify HMRC that you have decided to start trading, and a record of the start date will be generated for tax purposes.