When you set up in business, one of the first things you must do is choose a name. A well-chosen name can play a powerful part in building your business and contributing to its profile and success.
This guide looks at:
The legal aspects of naming your business
Legally speaking, names used by sole traders and unincorporated businesses are known as business names, while the names of incorporated limited businesses are referred to as company names.
Although you won’t need to register it, your business name must comply with the Business Names Act of 1985.
Company names must be registered at Companies House and comply with the Companies Act of 1985.
Is your name already in use?
If you don’t want to use your own name, check that someone else isn’t already using your chosen alternative. There are a number of places you can do this free:
The risk of choosing a similar name to another business
You may run into problems if your name is easily confused with an existing business in the same area or one that offers similar products or services. If confusion does or could arise, the other party could take you to court to make you change your name.
Names you may not use:
Making your name clear in your business dealings
You must include your business or company name on all documentation, such as stationery, invoices and receipts, as well as websites.
If you are registered with Companies House, you should also add your registration number and registered office address.
If you are a sole trader or partnership using a different trading name, include your name or the names of the partners.
Choosing your name – what works and what doesn’t
A business name plays several roles. It informs, projects personality and enhances your business profile and image.
When you are naming your business, ask yourself:
What to avoid
What your name says about you: size, image, branding
How big do you want people to think you are?
Certain names could automatically position you as small, e.g. Willesden Data Services. This might be useful if you want to convey a sense of being a local business that can deal with customers on a one-to-one basis. It may not work if you plan to expand over a wider area.
Adding a word like “International” may imply size and give your business stature – although if you don’t work internationally, you could be giving a false impression about your business and attract customers that you’re not geared up to serve.
Your image and branding
A well-chosen name contributes to the positive image of the company or business it belongs to.
Names that are pleasant, memorable or even quirky could work well. But a good name isn’t enough on its own; it must be supported by smart, consistent branding and promotion.
It is worth consulting a designer to help you develop a brand identity for your business. This will give your business a logo and a consistent look that you can apply to everything from your business premises to your website and stationery.
Protecting your name
You can protect your name in a variety of ways.
Once your business name is in use, make occasional checks to ensure that no one else is setting up nearby or in the same line of business using a similar name.
Useful contacts
