Trading Name vs Company Name

Trading Name vs Company Name UK: Which One should I Use?

07/09/2021Business , Limited Company

Your company’s title is an essential part of your brand and personality. It is shown on signs, printed material and expressed on all of your tax returns and budgetary reports. Limited companies are required to register an official name with the Companies House and also have a choice of operating under another (different) name. But which name is better to be used by the company? In this blog, we will focus on trading name vs company name.


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What is a Company Name?

The name, which you have officially registered with the Companies House, is known as a company name. The companies names are invalid if:

What is Company Name?

  • They are offensive
  • They are linked with any local authority or an organisation
  • They are identical to the trademark or registered name

The company name should end with “Ltd” or “Limited”.


What is a Trading Name?

It is a name that is used by your business on daily basis and you are not required to register it with the Companies House, but it should meet the same conditions as a company name.

Remember that the rules for company names are slightly different for self-employed persons and partnerships. They are not required to register their official company name with the Companies House (and operate under the given name instead of a company name).


Trading Name vs. Company Name

Trading name vs. company name; which one to choose? It is a key decision to operate under a trading name or adhere to your unique company name. You have to keep these points in mind if you are choosing to use a trading name.

Confusion for Customers – Using a trading name (after few years of running your business) instead of a company name can create confusion in your customer’s mind. Therefore, you should be prepared to answer all the queries related to this change, and you should convey to your customers that your company will remain the same, only your name will be changed.

Company Reputation – This change can harm your business reputation. Business owners struggle a lot to set up a solid brand and reputation. If individuals can not recognise your brand due to name modification, then it might negatively affect any goodwill you’ve built up over the past years, so do consider these risks while using a trading name instead of the company name.

Feasible with both time and money- You have to make sure that is this change is feasible in both time and money? Your expenses will quickly increase because to reflect your new name, you’ll need to get new signs made, stationary, and editing your social media and website. So think almost whether you’ll save the money – and time – you’ll make these changes. In the event that you’re still battling to pay your bills and cover your other costs, it will not be encouraged to change your business name until your accounts are a bit more steady.


Quick Sum Up

To sum up the discussion of trading name vs. company name, we can say that you should consider all these key points while using a trading name instead of the company name. If you make sure of all the potential risks, then you can change the name confidently. In addition, it is better to consult with the professional before making any decision because they can help you better choose a valid name for your company and check the relevant trademarks registries for you.


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Disclaimer: This blog contains general information about trading name vs. company name.

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