fbpx

Why is choosing your company name important?

Why is choosing your company name important? - 1
hmrc

Choosing the name of your company is an important task when you set up your new business.  The name of your business will convey the image that you want to give so it is key that you give due time to ensure you get it right.

 

It is easy enough to alter the name of your company with Companies House at any time, however you will also need to notify a lot of other organisations including; suppliers, customers, your bank, clients and your accountant.  You may also need to update your website, stationery and business cards.

 

Below are some tips to consider to ensure you choose the correct name first time;

 

You may wish to choose a name that is associated with the industry you are in; for instance The Modern Building Co Ltd or ADH Architects Ltd.

 

You may wish to include the company’s location in the name so it can be associated with the area you are based in.

 

You may wish to have a trading name for the business rather than the official name registered at Companies House.  If this is the case you still need to use your official name for invoicing and official purposes.

 

You may wish to choose a name that has no immediate relationship to your business.  Many of the world’s biggest and best brands and companies have names that bear no relationship to the services or products they provide eg Amazon and Apple.

 

Many leading businesses use strong images/logos to make their products desirable eg Nike.

 

If you are unsure of what direction you wish your business to take you may wish to use a generic name rather than one that is specific making it easier to change direction in the future.

 

It is suggested that before deciding on your company name that you ensure that the domain name is also available.  It is important that you register your company name and domain name at the same time for obvious reasons, it also prevents competitors or opportunists from acquiring the domain name in the future.  You should look to buy the domain name in both the .co.uk and .com variants.  You may also wish to register similar domain names to your business name.

 

You should be aware that there are some restrictions in the name you give your company.  Other than obvious trademark names such as Addidas, Companies House has a list of “sensitive” words and expressions that you will be unable to use.