Business names and trading names: the rules

Anyone can trade under a name other than their own, but Part 41 of the Companies Act 2006 controls what that name may contain and requires sole traders and partnerships to disclose who is behind it on paperwork and at their premises. Business names are not registered anywhere, so the name also gives no protection: a business that copies someone else’s established name risks a passing off or trade mark claim regardless of what Companies House would accept.

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What counts as a business name?

Companies House guidance, Incorporation and names, says a business name is any name under which someone carries on business. For a limited company it is any name other than its registered name. For a sole trader it is a name other than their surname, with or without forenames or initials, and for a partnership a name other than the partners’ names.

Section 1192 of the Companies Act 2006 makes the point from the other side. The rules do not prevent an individual trading under their surname with only a “permitted addition”, which means a forename or initial, or an addition showing that the business carries on in succession to a former owner. Partners may use all their surnames with their forenames or initials, or add “s” where two partners share a surname. So “J Patel” is not a business name, while “Patel Plumbing” and “J Patel and Co” are.

Unlike company names, business names are not registered under the Companies Act. Registering for Self Assessment or VAT with a trading name does not reserve it.

What restrictions apply to the words in a business name?

Chapter 1 of Part 41 applies to any person carrying on business in the UK, so it covers companies using a trading name as well as sole traders and partnerships:

Government or public authority connection. Section 1193 prohibits, without the Secretary of State’s approval, a name likely to give the impression of a connection with the UK Government, a devolved administration, a local authority or a specified public authority.
Sensitive words. Section 1194 requires approval for any word or expression listed in the Company, Limited Liability Partnership and Business Names (Sensitive Words and Expressions) Regulations 2014. Annex A of the Companies House guidance sets out the criteria word by word. For example, “Chartered” used as the name of a professional body needs evidence of royal charter status.
Company type indicators. Section 1197 and regulations under it stop a business using “limited”, “LLP”, “plc” or similar endings it is not entitled to. GOV.UK’s sole trader guidance says a sole trader name must not include “limited”, “Ltd”, “limited liability partnership”, “LLP”, “public limited company” or “plc”.
Misleading activities. Section 1198 prohibits a name giving so misleading an indication of the nature of the business as to pose a risk of harm to the public.

The guidance also lists names suggesting a connection with a foreign government or international organisation, and names that Companies House has ordered a company to change. Breaching sections 1193, 1194, 1197 or 1198 is a criminal offence; the penalty for the last three is a fine up to level 3 on the standard scale, with a daily default fine for continued use. Where the name belongs to a company, its officers in default can also be liable.

How is approval for a sensitive word obtained?

Companies House guidance says that where a business name includes a word in its Annexes A to C, the business must get approval and, where relevant, the written views of a specified body, and send them to Companies House with a letter asking to use the name. Using such a name without approval is an offence. Approval is needed before trading under the name, not after.

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What must a sole trader or partnership disclose?

Chapter 2 of Part 41 applies to an individual or partnership trading under a business name (section 1200). It does not apply to companies, which have their own trading disclosure regime. Section 1201 requires:

for an individual, their name;
for a partnership, the name of each partner;
for each person named, an address at which service of documents relating to the business will be effective. If the business has a place of business in the UK, that address must be in the UK.

Section 1202 requires this information, in legible characters, on all business letters, written orders for goods or services, invoices and receipts, and written demands for payment. It must also be given promptly in writing to anyone dealing with the business who asks for it. Section 1203 relaxes the documents rule for partnerships of more than 20 partners that keep a list of partners’ names at their principal place of business, if specified conditions are met.

Section 1204 requires a notice with the same information to be displayed prominently at any premises where the business is carried on and to which customers or suppliers have access, so that it can easily be read.

A company that trades under a different name must still show its registered name on its business correspondence, documents and websites under regulation 24 of the 2015 trading disclosure regulations; see trading disclosures.

What happens if the disclosures are missing?

Failing to comply with section 1202 or 1204 without reasonable excuse is an offence under section 1205, again with a fine up to level 3 and a daily default fine. The civil consequence in section 1206 is often more serious in practice. If a sole trader or partnership sues to enforce a contract made while it was in breach, the claim must be dismissed if the defendant shows that the breach stopped them pursuing a claim against the business, or caused them financial loss in connection with the contract, unless the court thinks it just and equitable to let the claim continue.

Illustration only. A sole trader trading as “Northgate Joinery” issues invoices showing only the trading name and an email address. A customer who wants to sue over defective work cannot find a name or address for service. When the joiner later sues for an unpaid £4,000 invoice, the customer can argue under section 1206 that the missing disclosure stopped them pursuing their own claim. The court may dismiss the joiner’s action. Adding “Sam Okafor trading as Northgate Joinery” and a UK service address to every invoice would have avoided the argument.

Does using a name protect it, or expose the business to a claim?

Neither registration route gives the protection people assume. Companies House states that when it considers a complaint that a company name is “too like” another, it cannot take account of alleged trade mark infringement, implied association or possible passing off. A business name is not examined by anyone at all. The guidance advises searching the UK Intellectual Property Office trade marks register before choosing a name, and GOV.UK’s sole trader guidance warns that a name too similar to another’s trade mark may have to be changed if someone complains.

Two separate legal risks arise:

Registered trade marks. GOV.UK explains that registering a trade mark lets the owner take legal action against anyone using the brand without permission. Registration lasts 10 years and must be renewed.
Passing off. This protects unregistered goodwill. HMRC’s Capital Gains Manual at CG68455 summarises the classic test: the claimant has goodwill attached to its name, the defendant has made a misrepresentation to the public, which need not be intentional, that its goods or services are the claimant’s, and the claimant has suffered or is likely to suffer damage.

A small business that has traded locally under a name for years can build enough goodwill to stop a newcomer using a confusingly similar name nearby, and can equally be on the receiving end if it adopts a name already well known in its field. Changing name after printing, signage and a website have been paid for is expensive, so checks should come first.

What mistakes come up most often?

Assuming that a trading name registered with HMRC, or a domain name, gives exclusive rights to it.
Adding “Ltd” to a sole trader’s name to look more established, which is prohibited and misleads customers about liability; see sole traders and unlimited liability.
Invoices and websites showing only the trading name, with no owner’s name or service address.
Partnerships omitting a new partner’s name after a change in membership; see general partnerships.
Using words such as “British”, “Chartered” or “Bank” without checking Annex A.
A company changing its registered name but carrying on under the old one as a trading name without showing the registered name; compare changing a company name and company name rules.
Reusing the name of a failed company, which can engage the separate prohibited name rules in phoenix companies.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.