How to register a business name

In the UK if you're thinking of registering a business name then in most cases you'll want to become a limited company, this is known as incorporation. This is done by a process called incorporation and is a relatively straightforward process to do.

There are many reasons people choose to register a business name and to trade as a limited company, the tax benefits are one of the key reasons along with the protection you'll have as a limited company.

The majority of people register with Companies House, which is the official company registrar in the UK but there are several other ways you can do it which can be more user-friendly and intuitive.

The whole process is quick, very low cost (from free to £12 as of 2023) and easy.

A summary of how to register a business name

1. Check that your company name is available
2. Choose your company registered address
3. Select a SIC code
4. Appoint a director (or multiple directors)
5. Choose a company structure
6. Select your shareholders
7. Sign the statement of compliance
8. Pay a formation fee

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Check that your company name is available

When you register a company name it must be unique, therefore you'll need to check to see if the name is available, your name can't be identical nor too similar to others which could lead to confusion.

The companies house company name checker is really easy to use, simply type in the business name and click search, you'll be shown a list of matching or similar names. If none exist that's great news and you can opt for that one.

One key thing to remember though is that you registered company name does not need to be the same name as the one you'll trade as i.e you could register as Manchester Glazing Solutions Ltd but you could use your business name as 'Manchester Glazing'. You'd use the registered company name on invoices and official documentation but you could put the shorter business name on signs and so on.

Last thing to be aware of is to avoid using punctuation or special characters and you'll want to avoid certain words that are either offensive, could be seen as false advertising, any trademarked terms and so on.

In summary:

• Choose a unique name
• Names that are related or meaningful are better than random names
• Don't make it too long, complicated or hard to spell
• You can use a shorter name as a 'business name'

Choose your registered company address

This is where your company will be officially registered on companies house at, this does not need to be where you conduct business. In order for you to open a UK limited company the address must be UK based.

This address will be visible to anyone who searches your company name on companies house so it's important to consider if you want this to be your private residence address. The majority of people will opt to use an address that isn't their home address, this will often be their accountant's address (if they allow it) or there are companies who offer the ability to use their business address as your company address for a small on-going fee, this covers the cost of them forwarding on documents, offering this service and of course as any business does make a profit.

Selecting your SIC code

For many people the term 'SIC codes' may mean nothing, but do not fear, this simply stands for Standard Industrial Classification of economic activity, or in layman's terms the category that your business activity will fit in.

Luckily HMRC help you by giving you a big list of different SIC codes for you to select from. Your company can have up to four SIC codes and if your business activity changes in the future you can change these.

Appointing a company director or multiple directors

When opening a limited company in the UK you'll need to appoint at least one director, the criteria for this director are as follows:

• They must be over 16 years old
• Must not have been previously disqualified as a director

Often companies will have one or two directors to begin with, larger companies may have multiple directors.

As a director of a company you'll need to supply companies house with two addresses, one will be available to the public and will be the office service address and another must be a residential address and this is not publically available.

The service address is often the same as the company house, if this is the case then you'll need to make sure your residential address is different to these.

The final step will be to attach a signed letter of consent with the application form, which confirms you or the person have agreed to be a director of the company.

Choosing your company share structure

The majority of people will choose to set up a private company limited by shares, most commonly referred to as a limited company.  When setting up a limited company you'll need to decide on the share structure, this will include information such as the number of shares of each type as well as the total value of these shares.

Most people opt to use a nominal amount for each share, typically £1 share value and typically people will have 1 or 100 ordinary shares. Saying this there are no limits to the numbers of value of the shares.

You'll need to also make a note of the rights of each share (this is in relation to things such as voting rights and dividends)

All of this is called a 'statement of capital'

Selecting your shareholders

As your new limited company will have shares, you'll need to make sure the shares total equal 100% of the company. If you're the only director and shareholder then you'll own 100% of the company.

If you've got various shareholders, you'll need to add details for each of these such as their address and security details.

If any of the shareholders over 25% then they will be listed as a 'person of significant control'

Signing the statement of compliance

When setting up a company and registering it with companies house, you'll need to read the requirements of the companies act and agree with them and confirm that you've adhered to them during your registration. This also relates to reading the Memorandum of Association and confirming you understand it.

This may sound quite confusing but essentially it can be done by simply checking some boxes once you've understood it all.

Paying the company formation fee

The cost to set up a limited company is minimal, once you have completed all of the above steps you're very nearly ready to submit, the final step will be to pay the formation fee that Companies House charge, this is currently £12, however there are a number of companies that allow you to do this for free if you sign up to their services such as by opening a Tide business account.

Now you know how to set up a limited company, have a quick check to see the benefits vs the negatives of a limited company.

Benefits of a limited company

The main reasons people look to start a limited company are:

• Tax reasons - as a director of a limited company, you can take income from your business in way of dividends often together with a salary which can be beneficial for tax reasons
• Limited liability - This protects you as a director in terms of your personal assets such as a car or house cannot be taken if your company gets into financial difficulties
• Professionalism - As a registered company, your business may be taken more seriously and on occasion, some businesses will only deal with registered companies
• Ability to claim company expenses
• Ability to set up and use a pension scheme, allowing you to invest pre-tax income into a pension

Negatives of a limited company

There are some things to keep in mind when registering a company with companies house, these include:

• As a legal entity you'll need to file documents every year and comply with legal obligations as a company director
• It may be wise to use an accountant who can help with your company tax return and other legal sides to a business.
• Records of ownership, accounts and more will be visible to anyone wanting to find them on companies house.

Business Name Checker

If you're wanting to check company name availability then we recommend the best way to do this is via Companies House itself, as this is the only place that if you check a business name that you will get the most up to date information.

You'll not only be able to check if a company name is available but you'll also be able to see if there are any similar company names registered.

Companies house company name change

If you're not 100% sure on your company name or your business changes down the line and you want your company name to reflect this then you can change the name of your limited company easily online.

The cost is £8 or you can pay £30 for a fast track service to change limited company name.

Registering a small business

Small business registry is one of the most common reasons that a limited company is setup, if you're searching to find out how to register a small business it follows the steps listed at the top of this guide. Once you register with companies house you can start trading as that name as soon as it's confirmed.

Frequently Asked Questions

Do you need to be a UK resident to open a UK company?

You don't need to be a UK resident to open a UK company, you can register a UK company regardless of your nationality or residency, you will need a registered UK address however.

Do you need proof of ID to open a company?

You will need a form of ID to register your company, this can be one of the following:

• A valid passport
• Current valid UK photo driving license

You'll also need to have proof of address, this can be one of the following:

• Utility bill (must be within the last 3 months)
• Council tax bill for the current tax year
• Mortgage statement
• Bank statement (must be within the last 3 months)
• HMRC self assessment letter (or tax demand letter)

Is there an annual cost to have a limited company?

If you register directly with companies house then there will be a one-off cost when you register, currently, £12 and that will be it, there is no annual cost.

Is my company name also trademarked?

No, registering a company in the UK does not give you a trademark, if you want to trademark your company you'll need to go down the trademark route, which is entirely different than registering a company.

How to register business names in the UK

A business name can be anything you wish within reason, the company name however needs to comply with the rules of companies house.

Is registering a business name hard?

The answer is no, luckily it's relatively straightforward to do and if you're worried about doing something wrong then you can always pay for a service to walk you through the process.

how much does it cost to set up limited company?

The total cost of setting up a new company is £12 if you do it directly, you may pay more if you use a third party to help you and you can sometimes do it for free with companies who will absorb the cost into another service they offer.

What tax will the limited company pay?

Most people will be able to register for Corporation Tax while registering with Companies House. You'll need to pay corporation tax as a limited company, registering for corporation tax is easy to do too.