A company name must not be similar to one which currently exists of one which is on the proposed register.
These provisions exist to prevent "passing off" which is where one company has a name so similar to that of another, that persons might think that they are the same.
They then may mistaken interact with one believing that it is in fact the other.
Using Spaces in a Company Name
A common misconception relating to this area is that spaces between words are sufficient to distinguish one name from another and thereby allow the company to be formed successfully.
For example, "Abigboat Limited" would not be registered if "A Big Boat Limited" was already held on the Companies House register.
Adding the word "The" to the beginning or end of a name is also unlikely to be sufficient to differentiate a new company from one which already exists. Adding the word "London" or some other geographical distinction is usually acceptable however.
Changing the case of a company name from upper to lowercase or visa versa does not distinguish one from the other.
The rules regarding similar names is by no means clear cut and in situations where the selection could be seen to be too similar to that of another, the person forming a company should contact Companies House directly for an informed opinion.
Objections to a Similar Company Name
Even with the approval of Companies House, there still exists a provision whereby if a person believes that the name of a newly incorporated entity is similar to their own, they can apply for it to be changed.
Existing companies has twelve months in which they can make such an application.
Similar Trading Names
An important to note that the name which a company is registered under does not preclude it from trading under a different title.
For example, “ABC limited” can trade as “XYZ provided the latter is not restricted in anyway by trademark or supervisory body.
Trademarked Names
Trading names are not directly supervised by Companies House or by any other regulatory body except in case where it is trademarked or deeded to be sensitive.
The status of a trading name is similar to that of a sole trader or partnership and is largely unregulated.