Business names

When you choose the name of your business as a sole trader, partnership or LLP you should be aware that you will need to comply with the disclosure requirements set out in the Companies Act 2006.  This means you will need to display your name(s) and an address where you can be contacted on all business stationery, invoices and so on, and at the business premises.

There are also certain restrictions on using misleading business names, or names which suggest a connection with government or public authorities, and some sensitive words which require approval before you can use them (for example ‘charitable’, ‘royal’, ‘national’ and so on).   It is worth noting that “Sheffield” is the only place name to which these restrictions apply.  If you wish to use “Sheffield” in your company name, you must first obtain the consent of the Master Cutler.

You must also check that your chosen name is not already being used by another business.  You can do this by checking the register at Companies House, checking trade directories, searching registered trademarks and also doing a general online search.  If you choose a name the same as, or sufficiently similar to, an existing business name you could be liable for an action of ‘passing off’ (trading on another party’s goodwill without their permission). 

If you are setting up a Limited company or LLP you will not be able to register a name if it has already been registered. As above there are sensitive words which require approval before you can use them.     
 
Getting Started:

Once you have decided which structure is right for your business you will need to make sure it is properly set up.  Remember that you can always start as a sole trader or partnership, and incorporate as a company (or LLP) if it becomes sensible to do so when you are more established. 

Your First Steps...

• register with HMRC as self-employed or an employer, and register for VAT if necessary;
• check your trading name is acceptable and not already being used by another business; 
• ensure you comply with the relevant disclosure requirements;   
• take out any necessary business insurances; and
• find appropriate business premises if required.

Sole Trader

• open a trading bank account if you want to keep your business and personal finances separate, for example ‘Adam Smith Trading As A. Smith Decorations’. 

Partnership

• open a trading bank account to keep the partnership finances separate;
• enter into a Partnership Agreement to govern the terms of the partnership if required; and
• enter into a Cross Option Agreement if required.

LLP 

• register the LLP at Companies House and provide details of the Members and Designated Members;
• open a trading bank account to keep the LLP finances separate;
• enter into a Membership Agreement to govern the terms of the LLP if required;
• enter into a Cross Option Agreement if required; and
• ensure you are aware of the ongoing requirements and the duties and responsibilities of Members and Designated Members.

Limited Company

• check your company name is acceptable and is not already registered at Companies House;
• register the company at Companies House – you will need to provide completed form IN01, Memorandum and Articles of Association and a cheque for the fee payable; 
• alternatively you could purchase a shelf company which has already been incorporated and amend its name and details as required;
• draw up the company’s statutory books which must be kept and maintained correctly by the company.  These contain all the details of the company, its registered office, its directors and shareholders;
• issue share certificates to shareholders;
• enter into a Shareholders’ Agreement if required;
• enter into a Cross Option Agreement if required;
• ensure that the company’s details (the registered office and company number) are displayed on all business stationery and that the company name is displayed on a sign at your place of business;
• open a bank account in the name of the Company, decide who will be an authorised signatory of that account and complete the necessary bank mandates; and
• ensure you are aware of and comply with the ongoing directors’ duties in the company’s articles of association and the Companies Act 2006. 

Useful links:
www.companieshouse.gov.uk/
www.hmrc.gov.uk/selfemployed/index.shtml
www.ipo.gov.uk/tm.htm