Change from sole trader to limited company
How to incorporate your sole trader business as a limited company. Covers the incorporation process, transferring assets, tax …
Rules for choosing a business name, trading name, or company name.
Check if your business name follows the rules before registering. Sole traders can use any name but must show their real name on documents. Limited companies must register a unique name with Companies House. Avoid restricted words without approval.
How to incorporate your sole trader business as a limited company. Covers the incorporation process, transferring assets, tax …
How to verify a person is eligible to be a company director before you appoint them. Covers the …
Compare the two most common business structures and choose what's right for you.
Steps to incorporate and register your limited company.
Your legal duties to identify, record, and report Persons with Significant Control to Companies House. Covers the 25% …
The rules for business names depend on your business structure. There are two distinct concepts to understand — your registered name (the legal identity of your business) and your trading name (the name you use day-to-day with customers).
Sole traders and partnerships can trade under the owner's name or choose a business name. Limited companies must register a unique company name with Companies House. All businesses can additionally use a trading name that differs from their registered name.
Certain words and expressions require prior approval before you can include them in a company name. The Companies Act 2006 (sections 54-56) and the Company, Limited Liability Partnership and Business Names (Sensitive Words and Expressions) Regulations 2014 set out two categories:
Words requiring Secretary of State approval:
Words requiring approval from a relevant body (you must seek a letter of non-objection):
Companies House will reject your application if you use a restricted word without the required approval.
Companies House will refuse to register a company name that:
Similarity is not checked: Companies House only blocks identical names, not similar ones. However, an existing company can object within 12 months if your name is too similar and likely to cause confusion (Companies Act 2006 s.69). You could be forced to change your name by the Company Names Tribunal.
Separately, using a name that infringes someone's registered trademark can result in legal action regardless of what Companies House accepts.
The Companies Act 2006 (sections 82-85) and the Company, Limited Liability Partnership and Business Names (Miscellaneous Provisions) Regulations 2009 require you to display your business name and certain details in specific places:
Company name must appear on:
Additional details required on business letters and order forms:
Sole traders and partnerships using a trading name must display the proprietor's or partners' names and an address for service on all business documents, stationery, and at their premises (Companies Act 2006 s.1202).
Penalty for non-compliance: A fine of up to £1,000 for failing to display required information, and contracts may be unenforceable against third parties if required details are missing.
Limited companies must end their name with "Limited" or "Ltd" (or "Cyfyngedig"/"Cyf" for Welsh companies). The only exemption is if the company is a not-for-profit meeting specific conditions under Companies Act 2006 s.60.
You can change your company name by special resolution (75% of shareholders) and filing form NM01 with Companies House (£10 online, £30 by post). The change takes effect when Companies House issues a new certificate of incorporation.
If you use a trading name alongside your registered name, both must appear on official documents.
Check your proposed name is not identical to an existing company. Use the free name availability checker at Companies House.
Even if Companies House accepts your name, it could infringe someone's trademark. Search at ipo.gov.uk/tmtext before committing.
Review the list of sensitive words and expressions. If your name includes one, obtain the required approval letter before applying.
Check availability of .co.uk and .com domains. Consider registering them before incorporating to prevent others acquiring them.
Ensure your registered name, company number, and registered office appear on all business letters, emails, invoices, and your website.
Official guidance on choosing, registering, and displaying business names.
Free Companies House name checker.
Companies HouseGOV.UK guidance on company naming rules.
GOV.UKFull list of words requiring prior approval.
GOV.UKCheck if your proposed name conflicts with an existing trademark.
GOV.UKSetting up as a sole trader including choosing a business name.
GOV.UK