# Need to set up company name?



## padifoot (Nov 16, 2010)

I am a small company, and I currently work alone, but do I need to pay out to set up a company name? I just don't want to make mistakes, I'd appreciate any help xx:confused1:


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## 12jane (Jan 3, 2010)

I dont know whta you mean by this. Do you mean get it ltd or something? Or do you mean set up and register it with HMRC etc.?


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## ChatterPuss (Sep 4, 2010)

Hi, You don't need to pay to set up a company name so long as you are happy that sometime in the furture someone could use the same name. If it is unique and you want to be the only company with that name then you need to register it with Companies House to stop anyone else using it. You will need to check with companies if anyone is already using the name you have chosen and if not you are free to use it. If someone has registered it they could sue you for pinching their name !
If it is not registered you can go ahead and use it and decide whether you want to register it stop anyone else !


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## Guest (Jan 3, 2011)

ChatterPuss said:


> Hi, You don't need to pay to set up a company name so long as you are happy that sometime in the furture someone could use the same name. If it is unique and you want to be the only company with that name then you need to register it with Companies House to stop anyone else using it. You will need to check with companies if anyone is already using the name you have chosen and if not you are free to use it. If someone has registered it they could sue you for pinching their name !
> If it is not registered you can go ahead and use it and decide whether you want to register it stop anyone else !


do you mean register with companys house!
or just as a sole trader - because if its as a sole trader its normally your name T/A whatever you choose for banks, returns etc!


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## ChatterPuss (Sep 4, 2010)

I mean to register a a name with company's house. This would be whether single trader, partnership or Limited company etc


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## welshdoglover (Aug 31, 2009)

Companies House are only interested in Limited Companies.

If you wish to be a sole trader you can make up a name but within reason. You don't get away with Arrods or Marks & Sparks cos they'll be down on you like a tonne of bricks, but I think Simon's Pet Supplies is ok.


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## newfiesmum (Apr 21, 2010)

It is only Limited companies that need to be registered with Companies House and you need to have two directors (if memory serves) or at least one director and one secretary.

If you go for a Limited company though you must file accounts with Companies House every year, and you must use a chartered accountant. The only real advantage to a limited company is that it is a separate legal entity to yourself, so you cannot be held liable for any debts accrued in the company name. You will also need to pay yourself a wage, with PAYE and the company has to pay their share of national insurance. All this can work out to be very expensive and hardly worth the effort if you are just working as a sole trader.


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## padifoot (Nov 16, 2010)

Thank you sooo much for all your replies. My mind is now at ease. Just several people kept saying I have to set up a company name... and if its going to turn out expensive, its best not to..

Thanks again x


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## dazb75 (Oct 24, 2009)

My other half is a sole trader and she thought that if she chose a name which no-one had thought of, then it would be OK.

She bought the domain name lucyspetpals.co.uk/ and traded happily under this name for 6 months. She then was contacted by Pet Pals UK Ltd to say that they had a trademark over their name and they would take legal action if she continued to trade under LPP.

She did try to trademark Lucy's Pet Pals, but it failed. She then chose the name  Top Notch Pets, bought the domain and applied for the trademark. The trademark was approved. This means that no-one can trade for a similar service under Top Notch Pets. This is useful, if you propose to offer a franchise sometime in the future. It does cost approx £200 to do this, but it covers the trademark for ten years.

See here:

Intellectual Property Office - Welcome to the Intellectual Property Office

A guide:

Sole trader (no plans for expansion) - buy a domain
Sole trader (may expand) - buy a domain and trademark
Ltd Company - buy a domain, trademark and register with company house

Good luck.


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## AlbertRoss (Feb 16, 2009)

The main reason for being a limited company is that you have a) a guaranteed unique company name and b) limited liability. It's b that's important. If something goes wrong and you are a sole trader you, personally, can be sued. If a limited company gets sued your liability is limited to the amount of money you paid for shares in it.

There are some things you have to do as a limited company you don't have to do as a sole trader e.g returns to companies house, having accounts audited etc. so it's usually a more expensive thing to do. On the other hand if something goes pear shaped you can (usually) avoid losing your house /being made bankrupt etc.


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## padifoot (Nov 16, 2010)

Many thanks for the replies, I think it may be wise to have a trademark definitely. Thanks alot.


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## Louise_81 (Mar 5, 2010)

Hmm, no one on here has went into HMRC. 

As a sole trader you need to register with HMRC on the day you are ready to start trading. You also need to set up National insurance contributions. You need to be keeping records of income and outgoing, and keep them for 7 years, you also need to do your tax returns once a year, and pay tax on any earnings.

Sorry if I am going over stuff you already know.


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## kate11 (Feb 8, 2011)

Hiya 

I was in the same boat, but having looked into it and spoke to other businesses it made sense to register your name, as it means your the only one with that name!

It can cost you dearly later on down the line if some one registers with your chosen name and you dont stand a chance, its alot of money to lose?

Have a look at - national business register - they search to see if the name is in use. 

kate and ruby


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## hungover (Dec 17, 2008)

As Loiuse81 suggests you have to make sure that you tell the taxman.

You need to pay two types of NI, one is based on your income the other is a fixed sum that you pay every week regardless of whether you make money or not, class 4 and class 3 NI.

There are advantages/disadvantages to either of the two business models.

An excellent forum is

UK Business Forums - the UK's most active help and advice forum for owners, managers and entrepreneurs of small businesses and startups.

Don't forget that if you have customers visiting your home you might need insurance- not that expensive.


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