Even if you intend to work as a sole trader, you should not disregard your business or trading name. Typically, the company and business has the same name and this offers some level of protection. However, a sole trader does not enjoy this type of protection, so it is important you select a name and then have it trademarked. This will protect you if someone starts a business with the same name as you.

Choosing the right name

In case you don’t know, there are many restricted terms that cannot be used to name a business without prior permission. Some of the terms that are restricted include Association, National, Federation, English and Royal. If your business has these terms, you would need to seek permission from different organisations and institutions, including the Secretary of State and/or Department for Constitutional Affairs. While you can get permission to use restricted terms, there are strict criteria that you would have to meet.

You also cannot use a name that another company or business in your industry and geographical market is using. If you end up using such a name for your business, it can be catastrophic and destroy your business even before it begins its activities. So, make sure the name you choose is unique and will not get confused with an existing trade name.

Research before you register with HMRC

Thorough research is the key to avoiding trademarks and already registered names. If you end up with a name that is a registered trademark, not only will you have destroy your advertising literature, stationery and other business materials, you may even end up forfeiting the profits you made under that particular trade name.

Your business name is your business identity. It is an asset that you should protect, while making sure it is legal and unique. So, spend time choosing a name for your business, even if you are sole trader. Then trademark it and also register a corresponding domain name. These are the best ways to ensure your business name is protected.

Finally, it is prudent to remember your trading name does not have to be the same as the company’s name. But, if it is, you enjoy some measure of protection.