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1. What is a 'business name'?
It is a name used by any person, partnership or company for carrying on business, unless it is the same as their own name.
2. What checks should I make before using a business name?
It is advisable to consult a solicitor before using a business name. You should also check local phone books and any relevant trade journals or magazines, to see if any other business is already using the name. If it is, you could face legal difficulties.
If you have any intention to trade goods or services, you would be well advised to ensure your business name does not conflict with a registered trademark. It does not have to be identical with a trade mark to cause possible conflict. Problems can arise if a name is judged to be confusingly similar. For further advice, including how to search the Trade Marks Register, contact the Trade Marks Registry of the Patent Office on:
E-mail: enquiries@patent.gov.uk
Website: www.patent.gov.uk
3. Who does the Business Names Act apply to?
It applies to:
- a company which trades under a name which is not its corporate name, for example, 'XYZ Limited' trading as 'Fish Antiques';
- a partnership which does not trade under the names of all the partners;
- an individual who trades under a name which is not his or her surname. It makes no difference whether the individual's first names or initials are added. So the Act would apply to Mr JQZ Singh if he traded as 'Singh Antiques' but not if he traded as 'Singh' or 'JQZ Singh'.
4. What is meant by the Secretary of State having control over business names?
Names that include words or expressions that are prescribed by regulation require the approval of the Secretary of State before they can be used. There are also other terms whose use in a name may, in some circumstances, constitute a criminal offence. See the next few questions for more details.
5. Which names need approval?
Names listed in appendices A, B and C need approval to avoid the public being misled into believing that a company has a size or status that is not justified. Appendix A also lists broad guidelines on criteria that your business will need to meet for certain words and expressions. A name that gives the impression that the business is connected with Her Majesty's Government or with a local authority will also need approval before it can be used.
Names that suggest a banking activity
Following the repeal of the Banking Act 1987, company names that include bank, banker, banking or deposit no longer need approval. However, using words that suggest a banking activity implies that the person using the name is carrying on a banking business and is therefore accepting deposits - a regulated activity under the Financial Services and Markets Act 2000 Act. Therefore, the person would normally need to be an 'authorised person' or to have exemption under the Act.
Use of a banking name by a person who is neither authorised nor exempt under the Act could be material to whether an offence has been committed under section 24 of the Act. A person may, however, be able to establish that the way that he carries on his business means that those who deal with him would not understand him to be an authorised person.
It should not be assumed that a decision by Companies House to register a particular banking name means that its use in certain circumstances would not contravene section 24. If you are in any doubt, you should seek independent legal advice. |
6. What happens if there is a change of ownership?
When a business with a name that includes a prescribed word changes hands, the new owner must obtain further approval within 12 months to use the name. This applies whether the name was previously registered under the Registration of Business Names Act 1916, or approved under the Companies Act 1981.
7. How do I apply for approval to use a name?
If you would like to use a name that includes a word or expression listed in Appendix A you should write, enclosing any information that might help support your application, to:
For Businesses in England or Wales
Business Names Section
Companies House
Crown Way
Cardiff
CF14 3UZ
Tel: 029 2038 0362 |
For Businesses in Scotland
The Registrar of Companies
Companies House
37 Castle Terrace
Edinburgh
EH1 2EB
Tel: 0131 535 5800 |
If you want to use any of the expressions listed in Appendix B, you will need to write to the 'relevant body' to ask if they have any objection (and if so, why) to your use of that expression. Enclose a copy of any reply you have received from the relevant body when you write to Companies House Cardiff or Edinburgh to ask for approval to use the name.
If the name that you have chosen gives the impression that your business is connected with Her Majesty's Government or a local authority, you must not use it without the written approval of the Secretary of State. If you do want to use this type of name, you should write to the Business Names Section at Cardiff or Edinburgh, giving as much detail as you can to support your application.
In such cases the Secretary of State's decision will be sent to you in writing after all the supporting information has been considered.
Approval by the Secretary of State to use a name is confined to the use of certain words or expressions. Such approval does not extend to a company's aims and objectives.
The use of words and expressions listed in Appendix C might be a criminal offence. If you wish to use them in a business name, you should write to the appropriate body and consult a solicitor. The Secretary of State has no power to approve or reject such names which are not covered by the Business Names Act 1985. |
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