When setting up a business, you might wonder whether you need a company name or a trading name – or both. Many businesses use a different name from their official Companies House registration, often using “T/A” (trading as) before their trading name.
But what’s the difference, and when should you use each one?
Don’t have time? Here’s the wrap-up of this article in less time it takes to eat a taco 🌮
▪ Company Name: The legal name registered at Companies House; used on official documents.
▪ Trading Name: A business alias that doesn’t need to be registered, often used to reflect branding.
▪ Trademarks: Separate from company names and trading names; used to protect intellectual property.
▪ Choosing a Business Name: Consider availability for trade, web domains, social media handles, and brand fit.
▪ Usage: Company names are legally required on websites, invoices, contracts, and more.
▪ Trademark Protection: Important for safeguarding your brand identity from others.
▪ n.b. Stay Sharp, Stay Savvy and Keep Winning!
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‘What’s in a name?’ Well, turns out, quite a lot.
1- What’s a Company Name?
Your company name is the official name you register with Companies House. It’s the legal name that appears on all official documents, including contracts, invoices, and filings with government bodies like HMRC.
When registering a company name, you must ensure it is unique and does not resemble another company’s name too closely. It’s also important to avoid any terms that suggest official endorsement (e.g., “The Government News Company”) and steer clear of anything offensive.
For example, a company cannot be registered as “The Super Duper Company Nine” if “The Super Duper Company 9” already exists.
2- Where Do Trademarks Come Into It?
A trading name is simply an alias or a brand name your business operates under, which does not need to be registered. Trading names are great if your official company name doesn’t accurately reflect your brand or if your business evolves over time. Unlike company names, trading names don’t have the same restrictions, so you have more creative freedom.
Trading names are particularly useful if:
▪ You want to use different names for different branches of your business.
▪ You acquire another business and wish to keep its existing brand identity.
▪ You simply prefer a more marketable name than your official company name.
You can use several trading names for different products or services. For example, “ABC Company Ltd” might trade under different names like “T/A Super Duper Construction” or “T/A Builders R Us”.
Remember, you don’t have to use a trading name, you can stick with your company name if that’s more suitable. Up to you!
3- Why You Should Protect Your IP and Trademark
People often mix up company names, trading names, and trademarks, but they serve different purposes.
A trademark is a way of legally protecting a name, logo, or even a color scheme as intellectual property. Unlike company names, trademarks can stop others – even sole traders or partnerships – from using a similar name for their products or services.
In short, registering your company name at Companies House provides some level of protection against other companies using the same name. However, it doesn’t protect you from other businesses (like sole traders) using a similar name. That’s where trademark registration comes in.
3- How to Choose a Business Name
Choosing a business name is an important step that requires careful consideration.
Here are some key factors to think about:
1. Is It Available to Trade Under?
Before setting your heart on a name, make sure it’s not already registered with Companies House. Remember, your company name must be unique and distinguishable from others in the registry.
2. Is the Web Domain Available?
If you plan to have a website, ensure the domain name is available and aligns with your business name. Avoid names that, when typed out as a URL, create inappropriate or misleading interpretations.
3. Is It Available for Social Media?
Check if your desired name is free across the social media platforms you want to use. Consistency in naming helps with branding and customer recognition.
4. Is It Easy to Remember?
Choose a name that’s easy to spell, pronounce, and remember. The simpler it is, the easier it will be for people to find you.
5. Does It Reflect Your Brand?
Your name should reflect your brand’s personality or provide an indication of what your business does. Including a relevant keyword can make your name more recognisable and memorable.
4- Which Name Should I Use Where in My Business?
You can use your trading name on any marketing materials or communications. However, there are certain legal documents where your official company name must be displayed. This includes:
▪ Your company website.
▪ Invoices, credit notes, and payment demands.
▪ Receipts and business letters.
▪ Contracts and legal documents.
▪ Company notices, such as general meeting notifications.
▪ Cheques signed on behalf of the company.
For example, if you operate as “ABC Company Ltd,” you might brand your business as “T/A Super Duper Construction” on marketing materials, but you’ll still need to use “ABC Company Ltd” on invoices and legal documents.
5- Protecting Your Business Name with a Trademark
If you want to prevent others from using your business name, you need to register it as a trademark.
This is particularly important if you plan to invest heavily in branding and marketing. A registered trademark can stop others from piggybacking on your reputation and ensures your business identity is uniquely yours.
Read more about protecting your brand here.
Conclusion
Your company name is your business’s legal identifier, while a trading name gives you the flexibility to market yourself in the way that suits you best. Protecting these names, especially through trademarks, is crucial to safeguard your brand identity.
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