You’ve thought of the perfect name for a business, but you’re just not ready to start trading yet. Or, you really like a name and you simply don’t want anyone else to have it.
So, you’re thinking, can you reserve a company name?
Let’s take a look.
Key takeaways
- Forming a limited company protects your business name from being used by others in the UK.
- Dormant companies must file annual confirmation statements and accounts to remain compliant.
- Registering your domain name and trademarking your business name enhances name protection and brand identity.
You can reserve a company name by registering it with Companies House
If you wish to start a business in the United Kingdom, you generally have two ways to proceed. You can set up as a limited company or operate as a sole trader. The model that is right for you very much depends on your circumstances.
By forming a limited company, you are stopping anyone else from forming another limited company with that name or with a name that is similar. This is because all companies in the UK are registered with Companies House (the official registrar of companies) and placed on the Companies House register, where all company names must be unique.
Sole traders are not registered with Companies House and so are not placed on the Companies House register. This means that there is less protection when it comes to securing a business name. However, sole traders do have the option to set up a limited company (to stop anyone else from forming a limited company with their business name) and then never trade with that company.
This is enabled by the fact that once a company has been formed, you are under no obligation to start trading with it. You can leave it dormant for as long as you wish. Whether this is a couple of months, a few years, or indefinitely – it’s up to you.
How to form a limited company
The process of forming a limited company is quick, simple – and one we can help with through our various company formation packages – prices start at £2.99 (excluding £100 Companies House fee).
There are a number of business structures that sit under the ‘limited company’ banner. These include private companies limited by shares, private companies limited by guarantee, limited liability partnerships, and public limited companies. It doesn’t matter what type of limited company you form; all of them are placed on the Companies House register, so they stop anyone else from forming another company with the same name.
However, a private company limited by shares is the most common type of limited company. To form this type of company, you will need:
- A unique company name (you can check if your company name is available with our free company name search tool)
- A registered office address based in the UK (a number of our packages allow you to use our address)
- Details for the company director(s) – the director is the person tasked with the general day-to-day running of the company
- Details for the shareholder(s), including how many shares are to be allotted – the shareholder is the owner of the company
- Details for the person/people with significant control (PSC) – the PSC is the person who holds ultimate control of the company
You only need one person to form a private company limited by shares. This person would act as a director, shareholder and PSC. Alternatively, multiple people can be involved in the company.
If you do choose to form a limited company with us, once you’ve picked your package, we’ll take you through the online company formation process, right up to submitting your application to Companies House. We’ll then email you as soon as your company has been formed.
How to maintain a company that doesn’t trade
There are three things you must do to ensure your company is dormant and compliant:
1. Tell HMRC
Shortly after your company has been formed, you will receive a letter from HMRC (sent to the registered office) with the company’s Unique Tax Reference.
Using the correspondence details provided in this letter, write back to HMRC to notify them that the company will be dormant until further notice.
2. File a confirmation statement on an annual basis
All limited companies need to file a confirmation statement with Companies House on an annual basis. This report details basic information about a company.
This is a requirement for both trading and non-trading companies.
3. File dormant company accounts on an annual basis
All companies are required to file their annual accounts on a yearly basis. This report details financial information about a company.
Dormant companies can file a specific set of accounts known as dormant company accounts.
Other steps you can take to protect your company name
There are a few more things you can do to ensure the safety of your company name:
Register your domain names
Even if you have no intention of trading online, ensure no one else sets up an online presence that could be mistaken for yours by registering any domain names relevant to your business name.
To give you a headstart, all of our company formation packages include a free .co.uk or .com domain name (provided by IONOS).
Register a trade mark
If you want your name truly locked down you should consider registering a trade mark.
The cost for registering a single trade mark in one class is £170 (with an extra £50 for each additional class).
Join The Discussion