How to Register a Business Name in the UK: A Step-by-Step Guide

There are important steps you need to take before you launch a business. One of the first and most important ones is to register a business name in the UK.

This step isn’t just a legal requirement. It also helps you build a unique brand identity, gain legal recognition, boost credibility, and protect against misuse.

If you aren’t yet sure of how to register a business name, this post is for you. Below, we cover the different scenarios for business name registration in the UK for sole traders, a limited liability partnership, and a private limited company. 

Let’s get started.

What Is a Business Name?

Every business operates under some form of business name. This is how your legal entity is recognised by customers and government or local authorities and registered in the UK. 

A business name is registered when a person wants to operate their own business. This name is the name under which a business operates and is known to both customers and authorities.

It is important to note that there is a distinction between trading names and registered company names. As part of the process of incorporation, a limited company is required to have a registered name.

However, sole traders can operate under a trading name even though they will be required to register with HMRC for tax purposes. 

Legal requirements for business names in the UK

Choosing a business name in the UK is characterised by following certain rules. For example, you may not choose a name that is too similar or the same as an already registered business.

Also important is avoiding sensitive words that are not permitted in business names. In addition, there are restricted words that you may not be able to use. For example, you need additional permission to use the word “accredited” in your business name. The same is true if you plan on using the word “insurance” in it.

Furthermore, any associated words related to the royal family such as “duke”, for example, will also need a special application to be made to the relevant authorities before you’re able to use it.

Last but not least, it is essential that your business name is unique as well as not misleading. Any non-compliance with these rules will see your application being rejected and sent back to you for revision. This has obvious cost and time implications.

Why register a business name?

There are various reasons why you’ll want to register your business name. The most obvious one is to protect the name from being used by competitors.

If your competitors trade under the same name as your intended business, you will have no way to differentiate yourself from them. Also, you will not have legal recourse to remedies to protect your business if your competitors have taken your desired business name.

However, other reasons include its ability to establish a brand identity and facilitate customer trust in your brand as your business gets off the ground.

Step-by-Step Guide to Registering a Business Name in the UK

Now that you’re aware of some important requirements and reasons for registering a business name in the UK, it’s time to focus on how to go about doing so. The step-by-step guide below should act as a solid starting point.

Step 1: Decide on the type of business structure

The very first step you should focus on is to choose your type of business structure because this has different business name registration implications.

For example, a sole trader business and private partnerships must register with HMRC for tax purposes.

On the other hand, limited companies must register with the Companies House, where the business name becomes legally recognised.

Step 2: Choose a unique business name

The next step is to choose a unique business name that will set you apart in your industry. A few tips for selecting a company name include choosing one that reflects your brand identity.

To ensure that there are no duplications of names, you can use the Companies House Company Name Availability Checker to ensure that your name has not already been registered there.

In addition to this, even if your business name is not already “taken”, you should follow the Companies House rules for using special characters (such as “+” or “and”). You should also avoid using sensitive words.

Finally, do not use any words or names that have already been trademarked because they are already legally protected by the UK Intellectual Property Office.

Step 3: Register your business name

Step three includes the registration of your business name. For sole traders and partnerships, the process is relatively straightforward as it involves notifying HMRC when registering for a self-assessment for tax purposes. You can also use your business name on invoices and receipts.

For business partnerships, you’ll need to submit all the details of the partners, such as all of the partners names, and appoint a nominated partner who will receive all the necessary partnership tax returns and other legal correspondence.

The situation gets more complicated for limited companies. When it comes to company registration, you should register with the Companies House, or the UK’s registrar. 

Here, you will need to provide this institution with a variety of details, which include:

• Your registered company name;
• Your registered business address or company address (you’ll also be required to furnish the company director’s alternative residential address but this will be kept private);
• The director(s)’ details;
• The share structure, types and values as well as the name of at least one shareholder and their share responsibility;
• The company’s Standard Industrial Classification/ SIC code to describe your business’ primary activities. Bear in mind that you can have up to four codes for one business and that each code represents an area of business activity, expressed through five digits.

Ultimately, in this comprehensive guide, you should be aware that there are fees to pay and application forms to submit before you get started. However, by following the steps above, you’ll be well on your way to launching your business and avoiding unnecessary legal issues.

Protecting and Using Your Business Name

Business name registration is a critical step to running a successful business. But apart from registering your business name, is there anything else that you should do? The answer is yes and below, we offer a few guidelines to help you on the journey ahead.

Trademark your business name

Many business owners make the mistake of believing that once their business name is registered, they do not need to trademark it. However, this is an erroneous belief and is not the case.

Registering your business name and trademark with the UK Intellectual Property Office is important because it protects your business from legal disputes if a competitor claims you’ve misused their trademark or name.

Furthermore, it protects your business name from being used by others. This means you can enjoy exclusive use of your business name in your industry, without fear or concern.

Ensure compliance with display rules

Once you’ve registered your business name in the UK company name register and paid your company formation fee, you also need to be aware of certain display rules related to using your business name.

For example, you must display your business name on official company documents, your website, your Google business profile, signage and other areas that distinguish your business as a legal entity.

Distinguish between business name and trading name

Finally, you should distinguish between your business name and your trading name. For example, with a trading name, you can use an alternative name or even your own name while retaining your legal registered name.

However, there are certain rules for disclosing the registered business name in official communication that must be followed.

Common Challenges and Solutions in Business Name Registration

It’s natural for some small business owners to go through challenges in the business name registration process. 

Here are a few worth considering so that you are well prepared going forward:

• Name availability issues: You may find that your business name conflicts with existing names out there. To solve this situation, you should consider modifying your chosen name, according to the various requirements. Alternatively, you may wish to appeal the process.
• Avoiding sensitive or restricted words: It’s also essential to understand the UK’s rules around restricted terms such as “royal”, “bank”, “insurance”, “accredited” and others. If you must use any of these words, you will need to get additional permission from the relevant authorities.
• Keeping your business name private: Using the company’s registered service address can help you protect your personal information, such as your residential address. If you do not have premises from which you can operate, and you do not wish to use your residential address during the business name registration process, you can make use of services such as virtual addresses for sole traders and directors.

Cost and Timeline for Business Name Registration

Getting to register your business name means ensuring that all the official paperwork is completed accurately. However, there are costs and timelines involved that you need to be aware of. Below is what you need to know for both sole traders, partnerships and a public limited company.

Registration costs

For sole traders and partnerships, there is typically no fee to register with the HMRC. 

However, there are costs involved for limited companies. The latter can choose from either online or postal filing services, each of which has an associated cost and time frame. 

Here’s what you should know:

• It will cost you £50 to register online.
• The cost of submitting a paper registration is £70.
• Same-day incorporation costs £78.
• Change of a business name can cost between £20 and £30.
• The cost for the latter service rises to £83 for a same-day change of business name.

How long does registration take?

The duration of registering a business name varies, depending on the route you choose to take. For example, the typical time frames for online registrations are generally much faster than postal applications.

In general, however, you can expect the service to take place as quickly as within 24 hours or between eight to 10 days, depending on the business structure chosen and the method of application.

Conclusion

The steps involved in registering a business name in the UK will vary, depending on whether you are a sole trader or partnership or you’ve chosen to opt for a limited liability company.

For the latter, you’ll need to register for self-assessment tax with the HMRC. With the latter, you’ll need to register all the details of the business, including the company accounts and two addresses of the director(s) involved in the business.

Securing a unique name for your business is essential because it will help prevent others from taking it and it can help protect your brand.

If you need further information, we encourage you to consult the resources made available by the Companies House, UK Intellectual Property Office as well as HMRC for ongoing support.

Frequently Asked Questions

What are the different types of business in the UK?

The different types of businesses in the UK are sole traders, partnerships, and limited liability companies.

What is the most popular small business in the UK?

Operating as a sole trader is one of the most popular business types for small business owners in the UK. This is the case because there’s typically no limit as to how much profit one can earn. However, it is important to note that small traders are personally liable for their business’ operations, debts and liabilities. Making an informed choice in terms of business structure is therefore crucial.

Do I need to copyright my business name in the UK?

While it is not compulsory to trademark your business name in the UK, it is highly advisable to do so to protect your business from unwarranted claims on your business name by your competitors.

Is it free to register a business in the UK?

Registering a sole trader or partnership business in the UK can be free, depending on the service you choose. However, there are costs associated with registering a limited liability company, which start at £50.