Before you begin trading, it’s vital to carry out a thorough check to see if anyone else is using your name. (See our guide for information on how to do this). Ideally, this will show that your name is completely free to use.
But what if you’ve settled on the perfect title only to find that it’s already been snapped up by someone else? Here’s a look at your options...
- If your proposed name belongs to a limited company (private or public) or limited liability partnership registered at Companies House, and you are also looking to incorporate a limited company or LLP, you will have to go back to the drawing board. You can’t register a business with a name that is the ‘same as’ that of any other on the index of limited companies and LLPs (‘same as’ means similar enough to cause confusion among customers).
- If someone suspects a company name has been registered at Companies House opportunistically (that is, to try and sell it on to its ‘rightful’ owner for a profit or to prevent someone else from registering it), they can make a claim to the Company Names Tribunal at the Intellectual Property Office (IPO). However, the claimant must be able to show that they have sufficient ‘goodwill’ in the name and that the other company was acting in bad faith.
- If you plan to register as a sole trader and you find another sole trader in a different part of the country is already using your name, this shouldn’t be a problem. However, if the company operates locally or nationally, or if there is any risk of confusion among customers, you should pick again. If you don’t, you run the risk of being sued for “passing off” (trading off another company’s goodwill and reputation by copying their name or branding). This also applies to sole traders that start trading under the name of a pre-existing limited company, or vice versa.
- If your name is too similar to one that has been registered as a trade mark, you will definitely need to select another. You can check this by running a search on the UK Trade Mark Register on the Intellectual Property Office (IPO) website. Unlike passing off claims, the owner of a trade mark does not have to show that there was confusion among consumers or that they have goodwill associated with the mark. Registering a trade mark gives you exclusive rights to use it nationally within the relevant class.
Remember, performing these simple checks initially can save you much time, money and hassle later on. Not only could you find yourself as the defendant in a trade mark infringement or passing off claim, you may also have to absorb the cost of rebranding your business and replacing your signage, stationery, etc.
Once you have found a name that is available and ticks all the boxes, another important consideration is whether or not a suitable website domain name is also up for grabs. Read our guides on how to choose and secure the right domain name here.