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• Choosing a business name: 13 FAQs
  
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• What sorts of business names are there?
• What are the main considerations when choosing a business name?
• How can I find out if someone else is already using the business name I want?
• I searched and didn’t find anything. Presumably that means I am OK?
• I found a similar name to the one I want, but I’m still keen to use it – is there any way around it?
• If I go ahead anyway, what can happen?
• Do I need to register my name as a trade mark?
• Can I register any name as a trade mark?
• Should I choose a business name that I can register as a domain name?
• Do I need a name I can register at Companies House?
• Are there any words I can’t use in my business name?
• The business is going to trade abroad – are there any special considerations?
• What if someone copies the name I choose?

1. What sorts of business names are there?

The owner of a business will often use his own name as its business name – the name it trades with, eg John Smith for a sole trader, or London Washing Services Limited for a limited company.

However, many businesses trade under a separate business name instead. Larger partnerships invariably do this, because a business name made up of all the owners’ names would be too long; but sole trader John Smith could also choose to trade as, eg Internet Solutions, and limited company London Washing Services Limited could trade as City Laundries.

Different trading names can be used for different parts of the same business. For example, a building firm might trade using one business name for its building division and another for its building supplies service.

A brand name used for a product or service is a business name, too. For example, Microsoft uses the brand names Word, Excel, Access, Powerpoint, Outlook, etc for its software applications. When choosing a brand name the same considerations apply as when choosing any other business name.

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2. What are the main considerations when choosing a business name?

Your business name should help you build up goodwill for your business among customers, suppliers and employees. If you succeed, it becomes a valuable asset that you can include in your balance sheet, sell, mortgage to raise money or license others to use.

It should be memorable. Long names, or initials, are often hard to remember. Distinctive names are best, though quirky names like Egg or Orange can confuse customers, unless you are prepared to promote them hard to establish the market position you want, or the name suits you because you are a creative business.

Another benefit of distinctive names is that they are easier to protect – for example, by:

• bringing a ‘passing off’ action in the courts (see question 6) against anyone who copies it
• registering it as a trademark (see question 7), which gives you significant rights against someone who tries to use your name, or a similar one, for their business

A name that is just a description of what you do (eg ‘The Card Makers’) means people know what you do immediately, and may remember you more easily, but if you decide to change what you do, or expand into a new area, you may have to change your business name, and start building goodwill in the new name all over again. It also makes it harder to register it as a trade mark, as it is just a description of what you do, and not distinctive enough to justify protection as a registered trade mark.

Many businesses with multiple business names use a distinctive word in all of them, with additional descriptive words for different parts of the business.