The Business Names Act - Trading names

A trading name needs to be distinct from names used by other businesses in the same line as yours and/or operating in similar geographical areas

- and some names are prohibited

United Kingdom

Do you carry on your business under a trading name?

What is a trading name?

What are the legal requirements about trading names you can use?

The Business Names Act 1985 governs the use of a trading name and information that must be disclosed to identify the business owner(s) behind that trading name. If you carry on a business in the UK there are key points that you need to be sure of -

The trading name(s) you use - avoiding confusion with the name of another business
The information you have to disclose about the ownership of the business
Where you must display that information.

What is a trading name?

The Business Names Act applies whenever a sole trader, partnership or company carries on a business under a name which is different from the name of the business owner.

In the case of a general partnership, if it trades under a name that does not give the names of all the partners/owners, this constitutes using a trading name and the Act applies.

For example, these are all trading names:: Trotters Independent Trading (prop. Derek Trotter); D Trotter & Associates; Snap, Crackle & Pop carrying on their partnership business as 'Snap & Crackle'; Richard Rogers Partnership, co-founded by Lord Rogers the architect of the Millennium Dome and Terminal 5; Lynx Mail, a trading name of Red Star Parcels Limited.

Trading names

From the marketing angle you want your business to project a distinctive name and image. The Business Names Act says that the trading name you choose must be one that will not cause confusion with another business using the same name or a similar one. (This applies to names whether they are registered as trade marks or not.)

The Act also prohibits the use of certain words in trading names or requires approval before you can use some specific words. These include words such as –

Royal, Olympic, British, England, International

Police, University, Federation, Institution, Group

Dentist, Optician, Vet, Architect, etc.Companies House website provides information about trading names as well as company names. You can get further information from this Companies House booklet –
Business Names (GBF3) (page opens in a new window)

A trading name needs to be distinct from names used by other businesses in the same line as yours and/or operating in similar geographical areas. Is it clear to the public that your business is different from another one with the same name or a similar one?

For example:

Papillon, a toy shop, would probably not be confused with

Papillon children’s shoes shop or Papillon take-away pizza!

And the French restaurant Papillon in Chelsea is unlikely to be

confused with one of the same name at an address in Hertfordshire.Or could customers and suppliers be misled into mixing them up or thinking they are part of the same business?

The Shangri-La Himalayan Restaurant might well be confused

with the Shangri-La Restaurant already in business nearby.

Checking out a trading name

You may want to get legal advice about the trading name you want to use. Better to get it right now, rather than have to change all your stationery and signage later.

You can also make your own enquiries about trading names. For example:

Check in Yellow Pages, local phone books, trade magazines and directories
Search on the web
Enquire through trade or professional associations, the register of trade marks and other sources.

Tip:

When searching on the Internet, be cautious about what you disclose about a proposed trading name or Internet domain name for your website.

If possible search on the first part of the name without giving it all away, or you might find your search has triggered another website to register that name for themselves.

You can also enquire at Companies House to see if there is a registered company or limited liability partnership (LLP) which has a name similar to the one that you use or intend to use.

Carrying on a business under a trading name – What are the legal obligations?

What are the rules about information you show on your business stationery or display at your premises?

What are the special obligations for partnerships?

Do you have to show the company's registration details on your business emails?

What information must you show on your website?

Click here to learn more about The Business Names Act – What must I do to comply?

About the author:

Mac McInerny is a director of MC Management & Communications Ltd and topenterprise uk ltd. He has an Honours degree in Law and his formal training includes sal es, marketing and financial and management accounting.

topenterprise uk ltd acknowledges the trade marks and intellectual property rights of the owners of the businesses named in this article.

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Property of topenterprise uk ltd and made available under the terms of use notice on this web site

Footnote
This article is intended to contribute to informed decisions by business owners, directors and managers. It does not constitute professional advice in all individual cases and should not be interpreted as giving specific advice or guidance.

Before making a decision to take any action you should make your own appropriate enquiries and seek legal, financial and other relevant advice from a qualified person or body. See terms of use for further information.

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