Business Names Act for Limited Companies

Limited companies need to comply with the Business Names Act and the Companies Acts

- including legal requirements about company information given in emails and websites

United Kingdom

The overall purpose of the Business Names Act 1985 is to enable customers and suppliers to know with whom they are dealing when an enterprise operates under a name which is different from the name of the business owner
– i.e. different from the company's registered name.

(Updated 16-Jan-2009)

Limited company

Unlike a sole trader or general partnership, a limited company is a legal entity in itself and separate from the people who run it. Its name has to be registered at Companies House and there are restrictions on words that can be used in the name.

Except for a few firms that have exemption, the company name must end with Limited or Ltd - or the Welsh equivalents - including ‘and Company Limited’ or ‘& Sons Ltd’.

Or you could have a public limited company with a name ending ‘PLC’.

(You can also form an unlimited liability company ‘Unlimited’, which is very rare indeed!)

Companies House can reject certain company names if they are offensive or very similar to the name of another company. For example, ‘Lands Ltd’ would not be allowed if ‘L and S Ltd’, ‘L & S Ltd’, ‘L and S Limited’ or a similar PLC is already registered.

Registration of a company name may require approval in certain cases and other legislation, such as the Consumer Credit Act 1974, also contain restrictions on the use of business names.

A company name can be accepted and registered but it may be challenged later if it is ‘too like’ an existing company name. This is where the differences between the two names are minor, such as ABC Retail Ltd, ABC Retailing Ltd or ABC Retail UK Ltd. An objection can be made to the Secretary of State and, if upheld, one company can be directed to change its name.

You can get further information from this Companies House booklet –
Company Names (GBF2) (page opens in a new window)

Trading name

If a company carries on business under a name which is not its registered company name, then it is using a trading name and the Business Names Act will apply.

For example, XYZ Limited is using a trading name if it drops the ‘Limited’ and trades as XYZ or if it decides to trade as ABC Services.

The trading name of a company must be one that will not cause confusion with another company, partnership or sole trader using the same or a similar name.

Business letters, orders and invoices, etc issued under the trading name must disclose the name and address of the company and these details must be provided on request, in writing.

Company disclosure

Limited companies need to comply with provisions in the Business Names Act and the Companies Acts.

Business Names Act

Under this Act, all businesses trading under a name other than that of the owner must disclose the owner’s name and the address at which documents can be served, i.e. the address of the company’s registered office.

The company’s registered name and address must be disclosed on all business letters, purchase orders, invoices, receipts and written demands for payment and displayed at business premises.

Tip:

Make sure that your accountants, solicitors or other premises that serve as the company’s registered office provide a reliable service. If legal proceedings are served at the registered address, you can’t waste a single moment in dealing with the matter!

Companies Acts

The Companies Acts also have provisions about displaying the company’s details at premises, on stationery and electronic media. These apply to documents and other communications given under its own name and may apply to those under its trading name.

The 1985 Act requires that the company name is painted or affixed outside every office or business premises at which it operates.

The Companies Act 2006 came into effect on 1 January 2007. All UK companies must state the company’s full name in its notices and official publications and on cheques, promissory notes and other specified documents.

The 2006 Act also requires that the company name plus registration number, place of registration (e.g. England & Wales) and the registered office address must be stated clearly on business letters and emails, order forms, invoices and receipts - and their electronic equivalents - and on websites too.

The Companies Act 2006 was intended to simplify company law, especially for smaller businesses. In fact it is the longest piece of legislation ever enacted since Oliver Cromwell’s first Parliament in 1654!

Click here to learn about the legal position of Sole traders

Or learn about Partnerships

About the author:

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

© 2008 Copyright topenterprise uk ltd
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.

Back to top of page