Business

5 Mistakes to avoid when naming your limited company

The first step to registering a limited company is choosing a suitable name for your new business. However, it’s easy to stumble at this first hurdle.

In this post, 1st Formations share the 5 mistakes you must avoid when naming your company. Let’s jump straight in.

5 mistakes to avoid when naming your limited company

The first step to registering a limited company is choosing a suitable name for your new business. However, it’s easy to stumble at this first hurdle. In this post, 1st Formations share the 5 mistakes you must avoid when naming your company. Let’s jump straight in.

Your company name is too similar to another name

Companies House – the UK’s official registrar of companies – will not allow you to form a company if the name already exists on the Companies House register. Nor will they let you form a company if your name is too similar to another company’s.

However, you should also do your own research to make sure the name bears no resemblance to any other company, or other business type (such as a sole trader).

Registering a company name that is similar to another business’s name will cause confusion so always take the necessary steps to ensure your name is wholly unique. To do this we recommend:

If your proposed name does share similarities to another business name, come up with a new one.

You’ve opted for a ‘quirky’ spelling

As a soon-to-be-business owner, you’re going to be speaking to a lot of people about your new endeavour. If the spelling of your company name deviates from a traditional spelling of a word, you’ll soon grow tired of spelling the name out to these people.

You need to pick a name that people will remember and be able to spell correctly, so they can successfully search for it online.

Yes, some big brands get away with quirky spellings, but you’re probably not at that stage just yet.

The domain name has already been taken

If you want your business to have an online presence, at the same time as checking if the limited company name is available, also check whether the domain name is available.

Picture this. You’ve just formed your limited company and you’re delighted that the first steps have been taken on your business adventure. Then you go to register the domain name, only to find that someone else has beaten you to it.

Save yourself the pain (and cost of changing your company name) and check whether the domain name has been taken before you register the company.

Your limited company name is limiting

Whilst stating what you do (and where you operate) in your company name may make perfect sense, ask yourself whether it actually limits your activity.

For example, Wimbledon Scaffolders Ltd is the perfect company name for a business that only erects scaffolding in SW19. But if the company also provided other services associated with the construction industry – and was happy to operate outside of Wimbledon – the name could have a negative impact on the business.

Don’t just think about your current situation. Consider what you have planned for your business; the services that you want to offer and how large your reach could be.

You didn’t ask anyone else

It’s vital that you ask other people for their opinion on your proposed company name.

You may find it hard to be objective about your name, particularly if it’s something that you’ve been considering for a while, but by seeking out feedback from trusted individuals (who will be honest with you) – you will eke out potential issues, such as any double-meaning you weren’t aware of, similar names, and dare we say it… spelling mistakes.

So there you have it!

Avoid the 5 mistakes covered in this article and get your business off to the best possible start!

1st Formations are the UK’s top-rated company formation agent. Their online service allows you to form a UK-limited company in as little as 3 – 6 working hours. Pick your company name, select your company formation package, make payment (packages start at only £12.99), and then complete the quick and simple company formation process.

What are you waiting for? Check if your company name is available now.

Editor

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