Choosing a name for your business

Coming up with a name can be the most fun, but also one of the most important decisions you will make for your business.  This is your opening line; your first and sometimes only chance to make an impression - and so it’s vital to get it right.


The first step in choosing your name is to look at the type of business you are starting. Is it a limited company or are you a sole trader? The rules for naming these types of businesses are slightly different:

Limited Company names

You must register a name for a limited company or limited liability partnership with  Companies House. Before you apply for your name, you must ensure that it:

- Ends with limited, plc, limited liability partnership, LLP or equivalents.
- Does not contain any offensive words
- Does not contain  any words that imply a connection with the government or local authority
- Is not the same as or very similar to a name already registered.

If your name includes any ‘sensitive’ words, such as National, British, or Royal, permission to use them must be granted from the Secretary of State.

Sole trader and partnership names

If you decide to register a business name, you must ensure that it:

- Does not contain the words limited, plc, limited liability partnership, LLP or equivalents.
- Does not contain any offensive words or expressions
- Does not contain  any words that imply a connection with the government or local authority
- Does not contain any ‘sensitive’ words (unless permission is granted)

You may also want to check that nobody else, at least in your area is trading under that same name. The fastest way to check this would usually be to search for that name on the internet, but you should also check you local directory.

Things to consider when choosing your name:

• Do you want a name that spells out the exact nature of your business – such as ‘Hannah’s Hair Salon’, or would something snappy and abstract like ‘Chop’ suit? The latter will usually sound more modern and edgy, so it depends upon the nature of your business, your target market, and the image you are trying to convey.

• Think about the future of your business. If you are likely to expand on your products and services, it may be better to choose something more general, as changing a name down the track can be tricky. For this reason, you should also avoid words that may date over time.

• The best business names are catchy, easy to spell and easy to remember. Using literary techniques like puns: ‘Hairsay’, known phrases: ‘A Cut Above’ or alliteration: ‘House of Hair’, can help a name stick in the mind. Names with short, regularly-spelled words will generally be more memorable, and will prevent the name from sounding pretentious.

• Think about the places your name will appear; you may use it on stationary, in a shop sign, a website URL - you might even answer your phone with it. Think about how it will look and sound, as something long may not be suitable. Also, if you are considering having your own website, check that your business name is available as a domain name.
 
• You may want to include a location in the title of your business, but this should depend on the geographical span of your potential customers. If you are a small business serving local customers and plan to stay that way, then something like ‘Hoxton Haberdashery’ would be fine. If however you have a potentially widespread customer base (or want to appear as though you do), then it would be better to have either no location, or a larger place-name like London. Its also important not to include words like ‘Worldwide’ or ‘International’ if you can’t live up to the name and serve customers abroad.

• Finally, when in doubt – get a second opinion. Whether you have something in mind or you’re still brainstorming, the advice of friends and family will be invaluable in this decision.

For more in-depth information on the rules of naming a business, visit Businesslink