smallbusiness.co.uk: Helping your business think big

Choosing a name for your company should be a fun process but one that you dedicate plenty of time and decision making to. You can trade under your own name or use another business name. If you decide to use a business name, you need to make sure that your business stationery displays your name as well as the trading name of the business.

There is no central record of sole trader business or trading names. If you wish to protect the trading name of the business you will then need to register it as a limited company. If you decide to do this then, currently, you need to have at least one company director and a company secretary.

If you do meet these requirements then you should visit the Companies House website (www.companieshouse.gov.uk) for instructions on how to become a limited company. The fee for this is £20 and all the paperwork can be downloaded. Once completed you will need to get your solicitor to sign them, so, if the name is important to you, this may be worth doing – otherwise, simply continue to use the name and remain as a sole trader. If a sole trader in another part of the country is using it, it shouldn’t be a problem. However, if another local business is using it, you should consider finding a different name to avoid customer confusion.

Visit www.businesslink4london.com and view our fact sheet entitled ‘Forming your business’ for more information about whether to operate as a sole trader, a partnership or a limited company, choosing a business name and other legal requirements.