The Company Name Check Process - Avoiding the Pitfalls

By: James Quinn
Submitted: 2009-06-12 15:47:10
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A company name check is essential when selecting a name for your proposed company. A thorough check will inform you of relevant legal restrictions, and allow you to work with them in the quest for the perfect name. You should perform a company name check on every likely candidate for your proposed company name during the creative process, rather than just on the name you settle on. There is nothing worse than finding out that the name you have spent days choosing has already been taken or is otherwise restricted.

This article outlines how to perform a company name check to aid in your search for the perfect company name.

1. Company Name Check – Summary

In summary you should perform the following company name checks as a minimum:

- Check that your proposed company name is available.

- Ensure that the name is not a registered trade mark in relation to the goods or services you provide.

- Ensure that the name is not being used by a competing business that operates in your area.

2. Has the company name already been taken?

Check that your proposed company name is available for registration. No two companies can be registered at Companies House with the same name. Companies House may also refuse to register a company name which is ‘too alike’ a name already on the register. This is the first element of the company name check that you should perform.

3. Mandatory suffix

The suffix that must be added to your company name depends on the type of company you are forming. In the overwhelming majority of cases this will be ‘Limited’ or ‘Ltd’, but could also be ‘Public Limited Company’, ‘Plc’, ‘Community Interest Company’, ‘CIC’, ‘unlimited’ or their Welsh equivalents. Unless you qualify for a specific exemption, your company name must end with one, and only one, of these suffixes. It should also be noted that these suffixes cannot appear anywhere in the company name except at the end. Ensure that your company name check takes into account this mandatory suffix.

4. Sensitive or offensive words and expressions

If you want to use certain words in your company name such as ‘International’, ‘British’, ‘Holdings’ or ‘Trust’ then you will have to meet certain conditions and/or ask for the appropriate permissions.

Also, if your company contains an offensive word then Companies House will refuse to register it. They will also refuse to register a name where the use of such name would be a criminal offence.

The use of a company name check tool that checks for the availability of your proposed name and for both sensitive and offensive words is recommended.

5. Don’t forget trade marks

The trade mark register is completely separate from the Companies House index of company names. Check them both.

A business may register a name which distinguishes their goods or services as a trade mark with the UK Intellectual Property Office (IPO), the European Community trade mark office (OHIM) or the World Intellectual Property Office (WIPO). The trade mark holder has the exclusive right to use their trade mark in relation to specified classes of goods and services.

It follows that if someone has registered your proposed business name as a trade mark, which covers some of the goods and services that you will provide, then you may be infringing their trade mark by using that name. In this circumstance you may wish to choose a different name to avoid the possible infringement.  

You can search for registered trade marks on the Intellectual Property Office website (www.ipo.gov.uk).

A thorough company name check should always include a search the trade mark register in addition to the company names register.

6. Company names are unique - Business and trading names are not

If you register a company with Companies House then you will be the only UK company with that name. However, it is important to note that the Companies House register only contains company names, and that the majority of businesses in the UK are sole traders or partnerships - not companies. Neither sole traders nor partnerships are obliged to register their business name with Companies House, and there is no equivalent database of business names for sole traders or partnerships.

It is also prudent to company name check by carrying out a thorough search on the internet and in local trade directories (such as the Yellow Pages) to establish whether there are any other businesses using your proposed company name. Check as thoroughly as you can, and steer clear of names that are used by businesses that offer the same goods and services that you intend to offer, and that operate in your local area.

7. Is your chosen name available as a URL?

If you would like your proposed company’s web-site address (URL) to include your company name then it is advisable to check whether that URL is available before forming your company.

The above restrictions undoubtedly constrain the creative process of choosing a name, but there are still plenty of good company names out there. Good luck with your search and don’t forget your company name check.

The information provided in this article is intended as a general guide only. It is not exhaustive or tailored to your individual circumstances.

Article source: Expert Articles