Choosing the right name for your business is an exciting first step in establishing your brand, but registering it correctly is just as important. If you’re wondering how to register a business name in the UK, we're here to help. In this guide, we'll cover the entire process - from choosing a name to submitting the official documentation.
What is a business name?
A business name is the official title that your company trades under. It can be your own name if you're a sole trader, or a unique name that represents your business. In the UK, business names are legally registered through Companies House for limited companies or declared to HMRC if you operate as a sole trader. It’s important to ensure your chosen name complies with regulations and is not already in use by another entity.
How much does it cost to register a business name?
The cost to register a business name depends on your chosen structure.
Limited company: Registering with Companies House online costs £50, while postal registration costs £71.
Sole trader: There is no fee for registering a sole trader business name with HMRC, but you must still register for tax purposes.
Steps to register a business name
Whether you're starting a small business as a sole trader or launching a limited company, following these steps will help ensure your business name is registered correctly and in line with UK regulations.
1. Choose a company name
Selecting the right name is more than a branding exercise - it also has legal implications. Here are some key considerations when choosing your business name:
Be unique and memorable: Your name should stand out in your industry. Avoid generic terms that won’t differentiate you from competitors.
Avoid restricted words: Certain words require permission to use, such as 'Royal', 'British', or any terms suggesting government endorsement.
Include the right suffix: If you’re forming a private limited company, your name must end with 'Limited' or 'Ltd'. Sole traders and partnerships don’t have this requirement.
Avoid offensive language: Companies House will reject names deemed offensive or inappropriate.
Consider digital presence: Check domain name availability if you plan to create a website. Matching your domain and company name strengthens your brand.
2. Check the availability
A unique name is critical to your business identity and legality. Here’s how to ensure your chosen name isn’t already taken:
Search the Companies House register: This free online tool lets you check if a name is already registered by another business. If the exact name exists, you’ll need to alter your choice.
Trademark search: Even if a name isn’t on the Companies House register, it could still be protected as a trademark. Visit the Intellectual Property Office (IPO) to search the trademark database and avoid potential legal disputes.
3. Decide your official business address
Every registered business in the UK must have an official address where government correspondence is sent. This address will be visible on public records. Your address must be a real, physical location in the UK. Options for your business address include:
Using your home address: This is common for sole traders, but it can compromise your privacy.
A professional virtual address service: Many business owners choose virtual offices to protect privacy while maintaining a credible business location.
4. Choose a SIC code
The Standard Industrial Classification (SIC) code represents your company’s primary business activity. For example, the SIC code for retail sale of clothing in specialised stores is 47710. If your business covers multiple activities, you can list up to four codes. Companies House provides an extensive list of codes on its website.
5. Appoint a director
Every private limited company needs at least one director. A director is responsible for managing the company and ensuring it complies with UK laws. Key points to note:
A director must be at least 16 years old.
They cannot be disqualified from serving as a director.
A company secretary is optional for private limited companies.
Directors’ personal details, including their name and correspondence address, will be part of the public record.
5. Outline your company share structure
If you're forming a company limited by shares, you’ll need to define its share structure. This involves specifying:
Types of shares: Usually, companies issue ordinary shares.
Number of shares: This indicates ownership. For example, if you issue 100 shares, owning 50 means a 50% stake.
Nominal value of shares: This is the minimum amount shareholders agree to pay for their shares.
6. Get a certificate of incorporation
After submitting your application to Companies House, you’ll receive a certificate of incorporation once your business is officially registered. This certificate is proof that your company legally exists. This legal document contains:
Your company registration number (CRN)
The date of incorporation
The company’s legal status (e.g. limited by shares)
💡Editor's insight: "Under the Companies Act 2006, a business can't operate as a limited company until it has been incorporated through Companies House. Incorporation is just another word for officially setting up the company. To incorporate your business, you'll also need a memorandum and articles of association - the rulebook of your company."
7. Pay the company formation fees
The final step involves paying the registration fee. Here’s a breakdown of the costs:
£50 for online registration via the Companies House website (usually processed within 24 hours).
£71 for postal registration, which takes longer.
Once your payment is complete and your documents are approved, your business is officially registered, and you can begin trading under your chosen name.
💡Did you know: "According to Gov.UK, there were 890,684 company incorporations during FYE 2024 - a slight increase of 89,678 (or 11.2%) compared with FYE 2023."
FAQs
Do I need to register with HMRC when starting a new business?
Yes, registering with HMRC is mandatory for all businesses. If you’re a sole trader, you need to register for Self Assessment to pay income tax. Limited companies must register for Corporation Tax within three months of trading. You can learn more in our full guide to how to register a business.
Can I run a small business without registering in the UK?
Operating a business without registration is illegal in the UK. However, registration depends on your business type:
Sole traders register with HMRC, not Companies House.
Limited companies must register with Companies House.
Even if your business activities are small, proper registration is essential for tax compliance and to avoid penalties.
Final thoughts
Registering a business name is a critical step in establishing a successful enterprise. Whether you're setting up as a sole trader or a limited company, following the right process ensures you start on solid legal ground. By choosing a strong name, securing the proper documentation, and registering with HMRC or Companies House, you’ll be well-positioned to grow your brand and operate legally in the UK.
Looking for legal advice? We're here to help. Get in touch today and see how our small business lawyers can support you and your company.