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Can I Use a Similar Name to an Existing Company when Forming a Company?

Rachel Blacklock
  • Updated

You can use Inform Direct to incorporate a company with a similar name to an existing company.

Our blog here provides a detailed explanation of the specific rules that cover a company’s or LLP’s name which may mean that your chosen company name cannot be used, including listing 'ignored' words and expressions which may render your proposed name as 'too similar' to an existing company.

As an example:

If the company INFORM DIRECT LTD already exists:

  • You will not be able to form INFORM DIRECT LLP
  • You will also not be able to form INFORM DIRECT (UK) LTD.

 

Companies House has recently introduced new rules which means that they will ignore the word 'UK' in a company name. Therefore, INFORM DIRECT (UK) LTD is recognised as INFORM DIRECT LTD. Companies House now require that company names are more specific; for instance using place names such as London or Manchester.

Therefore, you will be able to form INFORM DIRECT (LONDON) LTD - however you will need the permission of INFORM DIRECT LTD to do this.

 

What is the process?

  1. You type in the proposed new company name into the Inform Direct formation wizard.  See How do I check a name?
  2. Inform Direct software will check the name electronically at Companies House in real time.
  3. Companies House will advise Inform Direct that the name is available but is similar to an existing name and they will only allow the formation application to proceed if the existing company is prepared to give their permission.
  4. Inform Direct software will pick whether this permission is required and if so ask you to add the required permission.  See How do I add the required permission?
  5. Once you have added the permission (which must be a PDF file) the formation process continues as normal.

Note: There may be cases where the company name check ran by Companies House does not pick up on this and instead Companies House will advise in the form of a rejection after you have submitted the incorporation. This is unfortunately not within our control as it is Companies House which provide the name check data. 

 

How does the existing company give their permission?

To be acceptable to Companies House the permission must: 

  1. be on existing company headed paper/email; and
  2. state that proposed company name (quote new company name) will form part of the same group as the existing company (quote the existing company / group name); and
  3. state that the existing company group name (quote the existing company / group name) has no objections to the company (quote new company name) being formed.

 

What if Inform Direct is not asking for permission, but the name has been rejected as too similar?    

  1. Sometimes Companies House will not give Inform Direct the electronic message that permission is required.  This is a shortcoming of the Companies House messaging service.
  2. However the manual checking department at Companies House have previously rejected an application citing that the name is too similar.
  3. When this happens Inform Direct will need to temporarily add the proposed name as a restricted word which will trigger the option to add your permission.
  4. Please let us know if you need us to do this and the precise name of the company you intend to form by emailing support@informdirect.co.uk