Question submission date: June 2022
Full Question: “I want to set up a business as a Sole Trader – how do I register my company name?”
When you set up as a limited company (rather than a sole trader) there are hard and fast rules about your company name but this isn’t the case with sole traders so this is an interesting question.
For limited companies you pick a unique name that is then registered at Companies House and no-one else can use it. As a sole trader you do not need to register your businesses name but you do still need to put thought into choosing one that has longevity and is a good representation of what you do. Just because it’s not registered doesn’t mean you shouldn’t give it the same sort of consideration. You can use your own name or come up with a business name and it will need to be on all official paperwork such as invoices and letterheads.
Because the name doesn’t get put on an official register, if you want to be certain that no-one else will use it you can always register it as a trademark. A trademark lasts for 10 years at which point you will need to renew it. You can trademark logos as well as words.
It’s worth noting that sole trader names can’t include the word limited, limited liability partnership or public limited company (or abbreviations of these) and obviously can’t be the same as an existing trade mark.
Picking a name is one of the fun parts of starting your own business so take your time, this will be your brand and no less important because you are not limited. Once you’ve come up with something you love, make sure it isn’t trademarked and you may also want to make sure the domain name is available online if you intend on having a website.
For any further advice about setting up as a sole trader your accountant will be happy to help! If you’re still undecided as to what type of business structure you might choose, we’ve broken down the differences between freelancer, sole trader and limited.
