Choosing a company name

Companies House guidance sets out the main requirements for incorporating a company in the UK. The guidance entitled Incorporation and Names also provides advice on checking which names are acceptable to Companies House when naming a company.

Choosing a company name can be one of the most important considerations for a new business. The name must meet certain legal requirements and at the same time be an effective marketing tool. One of the first steps after choosing a name is to check that it is actually available. Companies House offers a free WebCheck service which allows users to search 170 million digital records including company names for free. It is also important to check the Trade Marks Register to ensure that the proposed name does not infringe an existing trade mark.

There are also a number of restrictions set out in legislation. These restrictions include:

  1. The name of a private company limited by shares or guarantee must end with ‘limited’ or ‘Ltd’.
  2. The name of a public company must end with ‘public limited company’ or ‘p.l.c.’.
  3. Certain expressions and abbreviations which describe a particular form of company can only be used at the end of a name, such as ‘Limited Liability Partnership’ or ‘Community Interest Company’.
  4. A name that could suggest a connection with the UK government, a devolved administration, a local authority or a specified public authority.
  5. A name that includes sensitive words or expressions included in regulations.
  6. A name that includes words that would constitute an offence.
  7. An offensive name.
  8. A name which is the ‘same as’ an existing name on the index.
  9. The use of certain characters, signs, symbols and punctuation in a company name.

There are also limits for some sensitive words or expressions. For example, a word or expression that may cause criminal offence. This includes names that could be taken to cause criminal offence.

Planning note:

The above considerations apply to the registration of a new company. Existing companies may also want to use a trading name, and most of the above comments would also apply to its selection. However, there is no formal registrar of trading names and other options need to be considered. For example, it may be advisable to register a new company with the required trading name as its company name, in this way poaching of the name by competitors can be restricted. The new company does not have to trade, it is just a device to secure the name. And, as mentioned above, a search of the Trade Marks register may be prudent.

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Case Studies

The Tax Man

Minimise the stress of an investigation and make use of our extensive experience in securing best outcome for our clients

Business Valuation in Distress

Take advantage of our impartial and rigorous due diligence procedures

FD in The Cupboard

Our innovative ideas are here to improve your business performance and secure appropriate and cost effective funding

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The Tax Man

The Tax Man

A new client was introduced to us via a recommendation with whom we arranged to meet on a regular basis in order to determine a number of changes that we felt were needed to their business structure. The client was at the time operating as a husband and wife partnership. The business was flourishing and had a number of large contracts with big organisations.

At the start of the process they were still heavily immersed in their day to day operations so we can get a full flavour for their ambitions, aspirations and growth plans. We quickly recognised there were sufficient tax savings which can be achieved by changing the structure from a partnership to a corporate entity. We carried out a business valuation and disposed of the goodwill from the old to the new business. Unfortunately, as often is the case with efficient tax planning, HMRC got involved and disputed our valuation.

An HMRC investigation can be a very stressful time for any client, even for those best prepared. However, our client had minimal input in the HMRC communication as we dealt with this professionally behind the scene. As an added benefit, our client could rest on the security that all work was covered by insurance and therefore all costs and time in dealing with this enquiry were covered by the fee protection policy we had put in place.

The initial approach taken by HMRC was very aggressive and they tried to present an argument that there was no goodwill in the business. We challenged HMRC’s view that the goodwill was worthless. After lengthy correspondence and numerous telephone calls, HMRC agreed 100% with our original valuation, which preserved our original tax saving plan for the client. Tax savings on this case where in the region of £75K at the outset, with ongoing savings of £6,000 per annum. We are pleased to add another happy client to our portfolio.

Business Valuation in Distress

Business Valuation in Distress

Selling a business is never an easy process, but when disputes arise, the need for a reliable third party due diligence process is even greater.

Tearle & Carver have extensive understanding of the requirements for remaining objective when managing a potentially difficult company buyout. In one such case, we were approached by the courts to act as independent accountant for an acrimonious business sale in which one partner was exiting the business and selling shares to the other. Given the circumstances, both sides had totally polar views of what their business was worth.

After arranging an initial meeting with the company, we were thorough in ensuring we completed due diligence, validating the figures in the accounting records, carrying out adjustments where appropriate, and drafting a set of reliable management figures within the framework required by the court.

A draft version of the report detailing our findings and conclusions was submitted to both parties, giving them the opportunity to voice any queries or concerns and ensure all relevant factors had been taken into account.

Through this process, we were able to submit a final report to the courts that was both binding and acceptable to both parties, effectively resolving what could otherwise have been a time consuming and costly process for all sides.

FD in The Cupboard

FD in The Cupboard

For smaller companies, it is often not possible or cost effective to pay for a full-time Financial Director.
Many of our clients therefore make use of Tearle & Carver’s extensive expertise to provide the services of an FD as and when required.

In this case, we were approached by the management team of an organisation looking to acquire the existing business via an MBO (Management buy out). Their business plan had proved ineffective for securing funding, and what they needed was financial expertise from someone with a developed understanding of the company’s internal workings.

Tearle & Carver helped deliver the solution our clients were looking through utilising our bank contacts in order to make the MBO viable, while also building a robust business plan and preparing our client for the rigorous vetting process. To help with cash flow issues, we introduced factoring which led to improved cash flow management.

We advised on the appropriate business valuation and structure, and continued to prepare monthly accounts to track profgress once the management were fully in command of all the information they needed to move their business forward.

In order to best assist these clients through the crucial first year of ownership, we attended board meetings on a regular basis, a service that we continue to provide to date.

With our continually developing understanding of their business, this client is able to remain confident that Tearle & Carver can provide any financial support they may need, now and in the future.