The process of starting a business requires many steps. The most important of them still involves name registration, and the UK is one of the countries that adheres to these rules. How to register a company name in the UK will be covered in full in this post.
How do you choose a proper company name in the UK?
The general rule is to refrain from submitting names with similar characteristics to another legitimate firm. Otherwise, after a careful name-checking procedure, the Companies House will reject them.
Here are some helpful pointers to prevent similar tragedies:
“Same as” names
When a name is described as being "the same as," it only slightly differs from an existing name. Punctuation, special characters (such as "+" or "@"), phrases that are frequently used in UK company names, and terms that have similar spellings or meanings to already existing names are some examples of these minor modifications.
Three examples that come to mind right away are "UK Tea Ltd," "Tea Ltd," and "Teas Ltd," which are all regarded as being the identical despite some minor variations.
For "same as" names, Companies Houses only recognize one exception under two restrictions. The first is that your company and others are a part of the same organization or group. Second, documented confirmation that the company in question has no grievances or objections to your new name is available to you.
"Too like" names
"Same as" labels and "Too like" names share similarities on a deeper level, making it possible for a casual reader to mix up the two.
It may be deemed "too similar" to an existing name if a name only differs from another by a few characters, signs, symbols, or punctuation points, or if they sound and appear the same.
Examples are the meanings of "Good Night For You" and "G9 4U," which are both completely the same. The choice of acronyms is the only distinction.
Authorities will contact you and give you instructions if they think the name of your business is too similar to another's.
Can I use the name if a firm is dissolved? Yes, but there are regional differences in what "dissolution" means. To ensure their current statuses, do rigorous investigation or get their explicit permission before using their names.
Trading names
Besides your registered name, you are allowed to trade under another name. A "company name" or "trading name" must be used instead of a registered trademark in this situation. Not allowed terms include "limited," "limited liability partnership," "LLP," "public limited corporation," and "plc." Political or sensitive phrases are likewise prohibited unless authorization has been granted.
Additional important elements
Name registries should never include words with offensive connotations. Also forbidden are any sensitive words or expressions. Additionally, unless you receive authorization from the appropriate authorities, no associations with local or state governments should be inferred here.
As an example, the BEIS must give 100% consent for the use of the word "Accredited" (Department of Business, Energy, and Industrial Strategy).
Online resources provided by the UK government provide additional advice on using legal and non-legal terms.
How can I see if a name is available?
The simplest approach is to conduct a search through the Companies House archives to determine whether your preferred label has crossed any lines that are not permitted.
But if you want to save time, you might think about using Entity Name Check.
What should you prepare in advance in order to register a company name?
A SIC Code
Obtaining a SIC Code is a requirement under UK law for business registration.
Choosing your "business activity" is the first step. By conforming to the Standard industrial classification of economic activities, describe what your business provides (SIC).
On official websites, you will be given a list of group names to choose from (for instance, 11xxx Drinks Manufacturers), followed by numerous options for trade descriptors.
For each business, add three to four SIC codes, and don't forget to check back in case there are any changes that should be made in the future. To learn more about all of the possible SIC codes, please refer to these official guidelines.
Firm address
Register names with UK postal addresses so that you can receive and address government notices. Remember that the locations of these addresses should be in the country where your businesses were founded.
If the company was registered in Wales, for example, the address would also need to be there.
Some individuals may want to separate their residential addresses from their company addresses because such locations are public information. Then, we advise registering your business with the person or company you select to handle your finances and taxes (ex: an accountant).
Directors
Are legally in charge of the business's operations and ensure that reports and corporate accounts are completed.
appoint a secretary and no less than one director (optional).
Make that they are all at least 16 years old and are not otherwise ineligible for their positions.
Give each director two addresses (one public and one private).
Share structure
A "statement of capital," sometimes known as a "statement of capitalization," is essential since a corporation limited by shares is composed of shares.
There are nine share types to choose from, and you might wish to add the totals and quantities for each one along with the currency they adhere to.
You must also include "specified particulars" that outline the rights that each kind of share (also known as a "class") confers on shareholders.
Shareholders or those in a position of power
A company requires a minimum of one shareholder or subscriber. The company's values are entirely in your hands if you become the only shareholder.
Please provide the addresses of each subscriber (whose information exists in the public record)
Provide three of the seven security features that act as online signatures.
Affirm the Persons of Control status of subscribers holding more than 25% of the shares (their names and service addresses entered into the system once more).
Compliance declarations
You must vouch for your compliance with the Companies Act registration requirements in order to proceed with this legal procedure.
Verifying that you have already accepted and agreed with the association's memorandum and bylaws, which set down all pertinent rules for legitimate firms, is also a necessary step.
Signing up for a Companies House account
Your chosen company name and address are required to be entered here, per Companies House. Verify this name's availability one last time before moving forward. To speed up the rest of the procedure, you can always choose well-known third-party platforms.
A limited company name registration process in the UK
The "certificate of incorporation" that results from this job confirms the firm's legal existence while simultaneously enrolling you for Corporation Tax. Your company's name and founding date will then be displayed by the system.
It is required that you and your shareholders provide at least three pieces of personal information during the process. Consider your mother's maiden name, phone number, and hometown as examples.
Posting Offline
If traditional methods are more your style or you don't want to include "limited" in your company name, you can register by mail using form IN01, which Companies House makes available on their website (register a private or public company). Before you seal the package and mail it, read the instructions to make sure you filled in all the required information.
Unaffiliated software
Utilizing software, you can update your information, submit returns to Companies House electronically, and submit your company's financial statements.
You have two options for software: you may either buy a package from a vendor who has been approved by Companies House (and HMRC) or you can create your own using the technical guidelines provided by Companies House.
Agent of a third party
Though both of the aforementioned solutions initially appear to be very simple, several transitional phases tend to be taxing for beginners and those without much experience. Correcting any error could take days (or even months), which takes time and costs money.
As a result, using a third-party agent is a popular choice that will greatly speed up your process due to their vast knowledge of name registrations.
The cost of registering a company name.
Taking into account that your prepared documentation is in order, the entire online process only costs £12:
Read full: https://bbcincorp.com/offshore/articles/register-company-name-uk
Conclusion
The steps to register a company name in the UK are described in full in this article. Although direct submission to Companies House is possible, many clients still rely on a third-party agent for a smoother and more expedient legal process.
Contact us at service@bbcincorp.com if you have any inquiries or worries about forming a business in the UK, or connect with one of our advisors for extra assistance.
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