Guidelines on Choosing a Limited Company Name
A major requirement when registering your limited company in the UK is to choose a suitable company name. While this is one of the very crucial steps that’ll get you on the ground to set up your company, it could sometimes be a daunting task to do. You would want to ensure that the name properly represents your business, describes what your company stands for, and resonates well with your potential customers and the public at large.
Beyond that, you would also want to be sure you are following the rules and regulations laid down for selecting a limited company name in the UK. This is essential because understanding the relevant legal requirements and compliance helps you make the right decision.
In this blog post, you will get to learn how to choose a strong and most suitable name for your limited company. You would explore the legal considerations to put in place before choosing a name, the tips that’ll help you get creative, how you can check the availability of your desired limited company name, and many more. Let's get started.
What is a Limited Company and a Limited Company Name?
A limited Company is a type of business entity in which the company or business has a separate legal identity distinct from the owners and directors of the business. A limited company is assumed to have its unique personality and thus it is treated as one by the public. Whether a limited company has only one member or multiple members, the business is still recognized as a separate entity. Thus the company in its name can sue other organizations or individuals and also be sued.
A limited Company name on the other hand is a unique legal name given to a limited company upon its conception. All Limited companies in the UK are expected to provide this name when forming their company with the UK Companies House.
There are several guidelines for creating a company name, so you’ll learn all these as you read further.
Rules/Guidelines to Follow When Choosing Your Limited Company Name
When choosing a name for your Limited company in the UK, the following rules must be adhered to. Failure to comply with any of them could lead to the rejection of the name when you are eventually ready to register the company.
1. Avoid Identical or Too Similar Name
When choosing a name for your limited company, the first rule to consider is to check if the name isn’t too similar or identical to the already registered companies name. A too similar or identical name could lead to rejection when registering your company. Two names are considered similar if the only difference is punctuation, special characters, and few alphabets or if the name is only being differentiated by a word popularly used in UK companies naming systems like LTD, Limited, etc.
Too Identical: If there is already an existing company name with Vicks Automobiles LTD. Selecting a name like Vick Automobiles LTD, Vicks Autos Limited, or Vick’s Automobiles LTD could be rejected.
Too Similar: Also, a registered name like “Easy Recipe for Kids” could be considered too similar to Eazy Recipe 4 Kids and could be rejected.
Apart from that, too similar or too identical name could be harmful to your business because it could mislead the public about your identity, i.e. it might be difficult for the public to differentiate your company from other similar ones.
2. Avoid Sensitive Words
When selecting a name, ensure that you do not use a word that connotes familiarity or connection with the government or official organization or authority. In situations where you must use them, then you would need official permission. You should check the list of the sensitive words to be safe.
3. Include the Use of Limited or LTD
Ideally, your limited company name should end with LTD or Limited.
4. Avoid the Use of Offensive Words
Be sure that the selected name doesn’t have a word that is offensive, abusive, or related to any criminal act. Also, be sure that your chosen name doesn’t give an offensive meaning when translated into another language.
5. Your name can showcase your Profession
Also, while choosing your company name, you can use a word that indicates your profession or nature of services. However, you might need to provide proof that shows you are officially permitted to carry out your services.
6. Follow the Permitted Number of Characters
Your company name should not contain more than 160 characters in total. These should include the alphabet, figures, special characters like asterisks, and spacing.
7. How to Check the Availability of Your Limited Company Name in the UK
Before deciding on the company name to choose, it is important to check if the name has not already been used by another company. To do this, kindly visit the UK Company Name Availability Checker website. This is a website owned by the government and it allows companies to check the availability of names before deciding on a suitable name. The site is free to use and it is generally accessible to many nations.
Once you are on the website, simply input your desired limited company name in the search field and click the search button. If the name already exists, it will pop out below the search field and that means you cannot use it again.
Tips to Help You Choose a Suitable Limited Company Name
Apart from following the rules and guidelines explained above, these tips would help you choose the most suited name for your company.
Use Descriptive words
Choosing your limited company name with one or more descriptive names (in terms of the services or products you offer) included will easily explain to the public what your business stands for. Again it helps them to easily recall your business when they need to. Most times, you necessarily do not have to go through a complex search before selecting a name as the nature of your profession/services could give an hint.
Also, using a word that simply describes your service can help you generate more traffic to your website when you eventually have one. Remember that Search Engine Optimization works with keywords and phrases, so having a descriptive word in your company name could translate to more online visitors and consequently more sales.
Make it Simple
Be aware that keeping your name simple is key. Do not choose a name that is difficult for your potential customer and the public at large to pronounce. Note that a simple name would also be easier to remember than a complex or ambiguous one. So keep it simple while also being creative.
Do not use a Name that limits your Brand
While it is good to include your locality or country when naming limited your company, it is also advisable that you consider the need to expand your business in the future. Do not limit your business name to the UK if you wish to expand your business later. Also using a name that is restricted to a product or service may not go well if you wish to add more products in the future.
Check through your Competitors' name
Going through your competitor’s name (those you are in the same line of business with) should give you a clue of what to choose. While doing this, you need to be creative and shouldn’t necessarily choose a name very similar to theirs.
Be Globally Sensitive
If you would like to grow your business beyond the UK in the future, then you must be culturally and globally sensitive. Do not choose a name that connotes disrespect, disregard, or detrimental to other cultures or languages.
Do a Domain / Social media Name Research
Doing domain research is also as important as doing your company name research since both will go line in line. To avoid having a different name for both, then you should consider doing domain research as soon as you get a suitable name for your limited company.
You would most likely want to have an online presence for your company so having a URL would be important in branding, marketing, generating new customers, and so on. Apart from that, you should check out social media handles like Facebook, Instagram, and Twitter to see if there aren’t similar businesses using the name to be selected. Remember being unique is key and your identity is important even in the online space.
Be Professional
Your company name should be professional. You’ll most likely have the name on your invoice, business cards, and other company’s related documents. So it should be one that will create a great impression on the public.
Can I Change My Limited Company Name?
Yes, you can change your limited company name if there is a need for it in the future. You would only need to complete the Companies House form NM01 (notice of change of name by resolution) and then reach a special resolution with the members of your limited company.
The form NM01 is a document specially used by Limited companies in the UK to give the Company House a notice of a written resolution i.e. the form informs the Company House about the amendment of a company’s name. The form can easily be completed online or you can send it through post once completed. Either way, you would need to accompany the form with a fee.
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Importance of Choosing the Right Limited Company Name
Selecting the right company name comes with a lot of benefits. First, it eliminates the chances of getting a rejection of name your once you file for the formation of your company. As previously mentioned the UK Companies House has some rules and regulations guiding Company naming including avoiding sensitive or abusive words. Taking note and complying with this rule increases your chances of getting your company formed easily thus saving you more time. More so, there won’t be a waste of effort when you do the right thing.
Also, it helps you create the awareness that your company needs when you include the use of descriptive words in your name. You are most likely going to be remembered more easily if your company name gives a hint about your product or service than when it doesn’t. So in simple terms, we could say selecting the right name can help you increase your visibility and consequently help promote sales.
Conclusion
Selecting a company name is as important as forming a company itself, thus it is a process that should be properly done. When you are eventually ready to select one, do not forget to keep in mind the rules, requirements, steps, and tips discussed in this post. Do you want help registering a company in the UK while abroad? Incorpuk is here to help you register a company today. Contact us now and enjoy diverse perks.