Are you looking for guidance on how to register a company name? We outline seven simple steps that will help you register your business the right way.
If you’re launching a business as a sole trader, it’s not mandatory to register a business name, but you must register for self-assessment with HMRC within three months of when you first started trading. If you’re setting up a limited company, you must register with Companies House, the registrar of companies in the UK. Even if you have no intention to set up a limited company right now, it’s still worth considering. As the name of a limited company cannot be similar to an existing name, you can secure your business name for the future. If you’re not yet ready to trade, you could set up a dormant company.
Once you’ve decided to set up a limited company, follow these steps on how to register a company name and you’ll be ready to launch in no time!
1. Think of Your Company Name
Your business is precious. It’s something you’ll pour significant energy, emotion and money into, and you have likely invested in it already. To ensure success, your business needs an appropriate, engaging and effective name. When thinking about this, be creative and think about your business’s longevity. Make sure your chosen name is not too similar to an existing company’s name.
Take note of punctuation, special characters or words that are commonly used in UK company names. Avoid sensitive words or terms that may be offensive or suggest a connection with government or local authorities. To use “Accredited” in your name, for example, you need permission from the Department for Business, Energy and Industrial Strategy (BEIS), while business owners who want to establish a charitable organisation must be registered with the Charity Commission.
NB: Your registered company name doesn’t have to be the same as your “business name” (or trading name). The same “naming” technicalities apply with the added caveat that you’re not permitted to use the words “Ltd”, “Limited”, “limited liability partnership”, “LLP”, “plc” or “public limited company” if they’re not actually correct.
Check Companies House to see if the name you want is available and then buy the website domain as soon as you get the green light!
2. Register an Office Address
To receive official notifications and correspondence from Companies House and HMRC, you need to register your company to a UK postal address. This address must be in the same country you registered your business. If you registered in Scotland, for example, you’ll need to have a Scottish address.
When registering your address, it’s important to note that this will be on the public record for marketing agencies and the general public to view. If you don’t have an office, such as if you operate from home, you can register your residential address, but it’s not advisable. Fortunately, credible registered office address providers like Mint Formations can help you keep your home and business address separate. With our service, you’ll be able to use our prestigious address in the heart of London. Not only does this offer protection, but it can also improve the perception of your business.
Note: When registering your business with Companies House, you’ll initially have to create an account (email address, name and password). Once you’ve done this, you’ll be prompted to enter your company name and address.
3. Choose a Business Activity
During the registration process, you’ll be asked to choose a “business activity”. This simply involves stating what your business does by assigning at least one Standard Industrial Classification (SIC) code. On the GOV.UK website, you’ll find a list of every SIC code available, each with a unique five-digit number and an industry description. You’re allowed up to four SIC codes per company, which you can change at a later date if you go on to diversify your business.
4. Appoint a Company Director(s)
Once you’ve selected your business activity, you’ll have to appoint at least one company director. This person is legally responsible for running the company and is accountable for the timely completion of reports and company accounts. Hiring a company secretary is not compulsory, and the director must be over the age of 16.
You must provide two addresses for each director:
- An official service address — this will go on the public record and be searchable
- A residential address — this will be kept private
If the service address and company address are the same, you’ll need to include an alternative residential address. Don’t forget to confirm that the nominal person has given consent to act as a director!