Trading Name vs Registered Company Name: What's the Difference?
Before anything else, it helps to understand that there are two different things people mean when they talk about a "business name" in the UK — and they work very differently.
A trading name (sometimes called a business name) is simply the name you use to trade under. It doesn't have to be your own name, and it doesn't have to be registered anywhere. If you're a sole trader called Jane Smith who runs a cleaning business called "Sparkle Clean", then "Sparkle Clean" is your trading name. You can use it on your invoices, website and marketing without any formal registration.
A registered company name is different. This is the legal name of a limited company, registered with Companies House. It's a formal legal entity, and the name is protected — no other company can register the same name. If you're setting up a limited company, your company name is registered as part of the incorporation process.
If You're a Sole Trader
Good news: as a sole trader, there's no formal process to register a business name. You simply start using it. You do need to register with HMRC as self-employed, but that's about your tax status — not your name.
That said, there are a few rules you need to follow. Your trading name must not:
- Include "limited", "Ltd", "LLP" or similar terms that imply you're a registered company
- Be offensive or contain words that are sensitive or restricted (more on this below)
- Be the same as or too similar to an existing trademark
- Mislead customers about the nature of your business
You also need to display your own name (and any business name you use) on business documents such as invoices, letters and your website. So if you trade as "Sparkle Clean" but your legal name is Jane Smith, your invoices should show both.
If You're Setting Up a Limited Company
When you register a limited company with Companies House, your company name becomes a registered, protected name. No other company can register the same name — Companies House checks this automatically when you apply.
Your company name must end in "Limited" or "Ltd" (or the Welsh equivalents if you're based in Wales). It must be unique on the Companies House register, and it must not contain restricted or sensitive words without approval.
You can check whether a name is available using the Companies House name availability checker at gov.uk before you apply. The search is free and takes seconds. Bear in mind that names which are very similar to existing registered names may be rejected even if they're not identical — Companies House uses a "same as" test that ignores common words like "the", "and", punctuation and spacing.
Once registered, your company name is protected on the Companies House register — but this is not the same as trademark protection. Another business could still trade under a similar name without registering a company. If you want stronger protection, you need a trademark.
Restricted and Sensitive Words
Certain words require permission or approval before you can use them in a business name. These fall into two categories:
Restricted words
Words like "bank", "insurance", "royal", "chartered", "university" and "NHS" require approval from a relevant body before you can use them. Using them without permission is a criminal offence.
Sensitive words
Words that imply a connection to government, a professional body or a regulated industry — such as "authority", "council", "federation" or "institute" — may require a letter of non-objection from the relevant body.
The full list is available on the gov.uk website. If in doubt, check before you commit to a name — changing it later is possible but inconvenient.
Should You Register a Trademark?
Registering a company name or using a trading name does not give you trademark protection. A trademark is a separate registration that gives you the exclusive right to use a name, logo or slogan in connection with specific goods or services.
You register a UK trademark through the Intellectual Property Office (IPO). It costs from £170 for one class of goods or services, and protection lasts 10 years (renewable). The process typically takes 4–6 months.
Trademark registration isn't essential for every business, but it's worth considering if:
- Your brand name is central to your business value
- You're in a competitive market where copycats are a risk
- You plan to license your brand or franchise in future
- You're building a business you might want to sell one day
Before applying for a trademark, search the IPO's register to check no one else already holds a similar mark in your category. Using a name that infringes an existing trademark — even unknowingly — can result in legal action and the cost of rebranding.
What If Someone Else Uses Your Name?
This depends on what protection you have. If you've registered a trademark, you have clear legal grounds to challenge anyone using the same or a confusingly similar name in the same category. You can send a cease and desist letter, and ultimately take legal action if needed.
If you haven't registered a trademark but have been trading under a name for some time, you may have some protection under "passing off" law — which prevents others from misrepresenting their business as yours. But this is harder to enforce and requires you to prove you have an established reputation.
The practical takeaway: if your business name matters to you, register a trademark early. It's much cheaper to protect a name before someone else uses it than to fight for it afterwards.
Next steps
Ready to set up your business structure? Follow the step-by-step pathway or explore the Sole Trader Handbook.
Disclaimer: This guide is for general information only and does not constitute legal or financial advice. Always check current HMRC guidance and seek professional advice where appropriate.