How to choose a company name? | 2026/27 UK Legal Guide

When advising clients on how to choose a company name, practitioners must navigate a strict statutory framework governed by the Companies Act 2006. For the 2026/27 tax year, the UK government has strengthened the powers of Companies House under the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) to reject names associated with fraud or deception.

To successfully register a new business name, you must ensure it clears the statutory “same as” test, complies with sensitive word regulations, correctly indicates the company’s legal form, and avoids infringing on existing intellectual property rights.

The “Same As” and “Too Like” Rules

You cannot register a name that is identical to one already on the Companies House register.

Under section 66 of the Companies Act 2006, a company must not be registered by a name that is the “same as” another name appearing in the registrar’s index.  When checking if a name is identical, the registrar automatically disregards certain common punctuation, words, and expressions. You must ignore terms such as “co”, “co.uk”, “com”, “company”, “GB”, “United Kingdom”, and “Great Britain” when comparing two names.

Furthermore, section 67 of the Companies Act 2006 grants the Secretary of State the power to direct a company to change its name if it is “too like” a name that already exists in the index.  If a client registers a name that relies on minor spelling variations of an established brand, they face a high risk of receiving a forced change direction.

Prohibited Names and Anti-Fraud Measures (New 2026/27 Rules)

Companies House enforces strict prohibitions on offensive and deceptive names.

• Offensive Names: Under section 53 of the Companies Act 2006, the registrar will reject any name if its use would constitute a criminal offence or if the Secretary of State deems it offensive.
• Criminal Purposes (ECCTA 2023): The newly inserted section 53A of the Companies Act 2006 drastically expands the registrar’s rejection powers. Companies House must reject a name if the Secretary of State believes the registration is intended to facilitate an offence involving dishonesty or deception.
• Re-using a Banned Name: If the Secretary of State previously directed a company to change its name under sections 67 or 73, sections 1198A and 1198B make it a criminal offence for the company (or another company with linked directors/members) to carry on business under that prohibited name.  Furthermore, section 57C prevents the registration of any new company under that banned name if it shares a relevant relationship (such as a common officer or member) with the original company.

Sensitive Words and Expressions

You must obtain prior approval before using certain “sensitive” words that imply a connection to the government, royalty, or specific regulated professions.

• Annex A Words: If your client wishes to use words like “Windsor”, “Royal”, or “St”, you must seek approval from the Secretary of State or the relevant governing body before applying to Companies House.
• Financial Conduct Authority (FCA) Words: For firms operating in the financial sector, you must seek the FCA’s view before using restricted terms such as “Bank”, “Insurance”, “Fund”, “Mutual”, or “Underwriting”.

Correct Legal Form Indicators

The company name must accurately reflect the entity’s corporate structure. Section 1197 of the Companies Act 2006 prohibits a person from carrying on business under a name containing indications that falsely associate it with a particular legal form.

For example, public limited companies must end their name with “Public Limited Company” or “plc”, and this cannot be preceded by the word “limited”.  Conversely, a private company limited by shares must use the suffix “Limited” or “Ltd” and commits an offence under section 1197 if it falsely appends “PLC” to its name.  Private companies limited by guarantee may, under specific circumstances, be exempt from the requirement to use the “limited” suffix.

Intellectual Property and the Risk of “Passing Off”

Even if Companies House accepts the name, the client may still face civil litigation if the name infringes upon another business’s established reputation.

If a client chooses a name that confuses the public into believing they are trading as another established entity, they risk a “passing off” claim. In the House of Lords case Reckitt & Colman Products Ltd v Borden Inc, Lord Oliver established the “classical trinity” required to succeed in a passing-off claim:

1. Goodwill: The claimant must have an established goodwill or reputation attached to their goods/services by association with their name.
2. Misrepresentation: The defendant (your client) must make a misrepresentation to the public leading them to believe the goods/services are provided by the claimant.
3. Damage: The claimant must suffer (or be likely to suffer) damage as a result of this misrepresentation.

Summary of Company Naming Rules (2026/27)

Next steps for research: Verify if the client intends to trade under a separate “business name” (a trading as name) rather than their registered corporate name, as Chapter 1 of Part 41 of the Companies Act 2006 imposes strict disclosure requirements on business stationery and premises for companies using alternative trading names.