Register your business name in seven easy steps

Registering your business name may seem like a minor task, but it’s far from trivial. It’s one small step in admin, one giant leap for your company. Beneath this seemingly simple process are crucial details you need to handle carefully. These seven tips will help you register your business name correctly and with confidence.

Step 1. Know your structure

Before registering a name, you need to choose your business structure. In the UK, you can structure a business in several ways. Here’s an overview of the main types:

Sole trader

A sole trader is the simplest business structure because it is easy to set up. Unlike other structures, sole trader businesses do not exist as separate legal entities in their own right. The law views you and your company as one and the same. An individual owns and operates a sole trader business, giving them full control and responsibility for all aspects of the company. 

Private Limited Company (Ltd)

Shareholders own a private limited company, while directors run it. The company is a separate legal entity from its owners, so it has its own legal and tax status. It must register with Companies House and meet annual filing requirements.

Partnership

In a partnership, two or more people run the business, share the profits and take full responsibility for debts and liabilities. Partnerships are generally easy to set up, and the tax authorities tax each partner individually on the profits allocated to them. 

Limited liability partnership (LLP)

In an LLP, partners are responsible for the business's debts and liabilities only up to the amount they invest, providing protection similar to a limited company. The business must register with Companies House.

Public limited company (PLC)

Larger enterprises often use this structure to raise capital by selling shares to the public on the stock market. These companies face more scrutiny than private limited companies and must meet strict reporting and compliance standards.

These are the main types of business structures. Other structures to consider include the cooperative, where members own and run the business, and the charity, a non-profit structure which benefits the public or a specific group.

Step 2. Choose a company name

A business name is important because it tells customers, clients and suppliers who you are and helps them distinguish your business in the marketplace. You can choose a company name that differs from your trading name, but sometimes it’s simpler to keep them the same, depending on your business.

Consider these tips when choosing a company name:

• Keep it simple – don’t confuse customers

• Incorporate your brand and mission – let customers know who you are and what you do

• Avoid names that are similar to already registered companies, including names with similar punctuation or special characters 

• Don’t choose anything offensive

• Don’t mislead people by using a name that falsely suggests your business is affiliated with the government or another authority

• Don’t include Ltd, Limited, LLP or PLC if your business isn’t structured that way

Once you’re happy with the name, check if it’s available at Companies House and as a website domain. This ensures you won’t face legal challenges from businesses that may already own the name. It also helps separate your brand from the competition. You can check if a name’s available here.  

Step 3. Decide the official company address

Your company needs an official address so you can receive mail and official notifications about your business. These notifications may come from HMRC, Companies House, customers, clients, suppliers and finance providers if you decide to take out a business loan, credit card or open a business bank account.

You can use your home address, and many businesses do – especially sole traders. Keep in mind that it appears on the Companies House listing if you register your business there, so if you prefer not to make your home address public, consider an alternative address such as:

• Your accountant or lawyer’s address

• A registered office

• A virtual office

Step 4. Choose a SIC code

A SIC code is a five-digit code that quickly identifies the nature of your business. It stands for Standard Industrial Classification and there’s a condensed list available at Companies House. 

Look through the descriptions and find the code that best matches your business from the list. If your business operates across several industries or classifications, you can apply up to four SIC codes. Take care when choosing your SIC code, as mistakes can lead to complications with tax and compliance. 

You need your SIC code to register your business with Companies House and to file tax returns.

Step 5. Appoint the company director

Registered companies need at least one director. A director isn’t necessarily the owner of the business. As mentioned earlier, multiple shareholders could own the business, depending on your chosen structure.

A director is responsible for the day-to-day running of the business. They manage the accounts or liaise with an accountant who does this, prepare business reports and ensure company accounts are kept up to date.

The director(s) must provide two addresses: the official business address and the director's home address, which remains private. If you’re the director and use your home address as your official business address, you must also provide a separate address such as that of an accountant or lawyer.

Directors must be over 16 years of age and must not have been disqualified from serving as a director. Reasons for disqualification include previous convictions for certain serious criminal offences, bankruptcy and insolvency offences, or fraudulent trading.

Step 6. Set the company share structure

If you opt for a limited company business structure, this step applies to you. 

All limited companies need shares. This applies whether it is a private company, PLC or LLP. A share simply represents a portion of the company. You can issue a single share or choose not to set an upper limit on the number available.

Shareholders are owners of the shares, which entitles them to a portion of a business’s profits based on the number of shares they own.

As part of the registration process, you must inform Companies House about the number of shares your company has, the price and class of each share, and the rights of your shareholders.

The most common class of shares is ‘ordinary shares.’ Shareholders with ordinary shares can receive dividends, share in the company’s profits, and typically have one vote per share at shareholder meetings. Other share classes include preference shares, deferred shares, convertible shares, redeemable shares, non-redeemable shares and non-voting shares.

You can choose to be the only shareholder and set the price at £1, giving you sole ownership of the business. Alternatively, you can have several shareholders and set the price higher. If any shareholder holds more than 25% of the shares in your company, you must list them as a Person with Significant Control (PSC) and detail the nature of their control during registration.

If you're unsure about the best share arrangement, it’s not a problem – you can change your share structure anytime. However, you need to have some idea when you register your company name so you can complete the registration process.

Step 7. Pay the company formation fees and finalise registration

At the end of the registration process, you sign a statement of compliance. You may need to submit evidence with your application if Companies House asks for it. Otherwise, you simply tick a few boxes.

Next, you pay the fee. Companies House fees vary in price depending on the transaction type and registration method, but it generally costs £50 to register online or £71 by post.

If you need a quick outcome, you can pay more for same-day registration.

After completing the registration, you get a company registration number (CRN) and can access your certificate of incorporation. This certificate proves that your company legally exists and complies with regulations. You may need to present this when opening a business bank account, setting up business insurance, dealing with HMRC, proving business ownership, or making changes to your business with Companies House. You must also register your company for corporation tax within three months of starting to trade.