Can I use a dissolved company name?

Can I use a dissolved company name?

You can use a dissolved company name for your business. However, you should research the dissolved company’s history and reputation before you take the name, as negative associations could impact your business image.

We explain the checks that you should make before taking a dissolved company’s name, and how to differentiate yourself from the former business.

Yes, you can use the name of a dissolved company. You may already know that there are certain rules and restrictions for choosing a company name . You shouldn’t assume that the name passes these rules just because it was used validly before.

Things might have changed since the name was first registered, so you need to go through the checks in the same way as you would when registering a company name for the first time. For example, another company may have registered a company with a similar name since the former company was dissolved. If that’s the case, then your proposed name might be the ‘same as’ another company name, and you won’t be allowed to use it.

The first check you need to do is to check that the proposed name is not the ‘same as’ an existing name on the index. You can check this with a free name check tool such as the one on Companies House or at Rapid Formations.

You should also search the UK Intellectual Property Office trade marks register to check your proposed name does not risk infringing an existing trademark.

The legal rules for using dissolved company names are the same as those for choosing a new company name. The relevant rules and regulations are:

Essentially, you can’t use offensive words or any words that might cause offence. Neither can you use ‘ sensitive’ words , which could imply a connection with the government. For example, you’re unlikely to be able to use the words “institute” or “tribunal” unless you have the required permission, and you can’t use a name that’s too similar to another company’s name. You also need to avoid computer code in your company name.

Yes, your company registration number (CRN) is unique to your company. That means that even if you’re using the same name as a dissolved company, your CRN will be different. It’s a way to identify you as separate entities and helps avoid confusion between your company and the former business.

The main risk of using the dissolved company’s name is confusion with your company. Customers of the former business may think that your company is the same, even if you’re carrying out different trades or providing different services.

This could harm your business if the company provided poor customer service, received negative press or had outstanding liabilities at its closure.

There is also a small chance it may affect your ability to get loans and credit. If a business receives a county court judgment (CCJ) or a high court judgment against it, the judgment will stay on the Register of Judgments, Orders and Fines for 6 years.

Banks and loan companies use this information to decide whether to give applicants credit or loans. So, if the dissolved company has a judgment against it, it may cause you issues in getting finance approved. You’ll have a different CRN, but you may have to overcome unnecessary hurdles to get approval from the financial institution.

Given that the reputation of the dissolved company could impact your future success, you’ll want to find out as much as you can before you take its name. But how do you find relevant information? Here are a few routes to explore.

Have a look at the dissolved company’s last set of accounts. This information is available online under the ‘Filing History’ tab of the Companies House search tool . The accounts can give you a basic idea of the company’s financial situation, including its debts.

You can also check whether any of the directors were disqualified. If they are, that might suggest that the directors mismanaged the company, and you may want to distance your company from that association. You can also search the director disqualification register .

A credit check will highlight any county court judgments (CCJs) or High Court judgments against the business name, which could affect your access to finance in future. You can search the register for a small fee (currently £10 to search all registers).

Finally, have a quick look to see what’s around in the public domain. What does a Google search reveal about the company? Are there negative news articles, press releases, or customer reviews?

You’ll get a feel for the business’s reputation, so you can decide whether it would be helpful or harmful if someone inadvertently confused your business with the previous one.

If you plan to use a dissolved company name, you should first check whether it is available for registration. You can do this using Rapid Formations’ free name-check tool or via Companies House . If the name is available, you can use it to:

The application includes key details about your company, including its name, its business activities and the details of its directors and shareholders.

Make sure you ask them for their ‘personal codes’ once they have completed the verification. You’ll need everybody’s personal code to complete the registration.

It costs £100 to register a company with Companies House. Once you’ve paid the fee, your company will usually be registered within 24 hours.

Alternatively, you can ask Rapid Formations to handle everything for you, and we’ll register your company and provide you with all the documents and compliance checks you need.

From a legal point of view, there is nothing stopping you from using the name of a dissolved company. You may have to accept that some people may confuse your company with the previous company while you’re establishing yourself as a business.

For that reason, you want to make sure that there are no red flags associated with the name before you commit. If you’re registering your company, and you’d like some help, our experts at Rapid Formations can take care of everything you need to form your company.

Dissolved companies are companies that have been struck off the register and are no longer in existence.

When you register your company, you will get a new company registration number (CRN), so you’re technically a brand-new entity, separate from the previous company. That means that you can’t be liable for any of the debts or obligations of the previous company. You can’t be sued for their mistakes.

However, it may take some time to repair the reputation associated with the name.

No. As a general rule, you run the risk of infringing the copyright of a dissolved company if you use its branding. Furthermore, a website’s domain name may still be registered with the old company.

Yes. There are legal restrictions on the names you can use for companies.

Essentially, you can’t use offensive words, and you can’t use ‘sensitive’ words which could imply a connection with the government. For example, you’re unlikely to be able to use the words “institute” or “tribunal” and you can’t use a name that’s too similar to another company’s name. You’re also forbidden from using computer code in a company name.

It would be unusual for a company to be dissolved, and for it to continue operating under a trading name. But if the trading name is still in use, and the company name is not, then you will be able to register the name at Companies House. That’s because you only need to check if a company name is the ‘same as’ those companies which are registered on Companies House.

It’s possible for the domain name to continue after the company is dissolved, because the domain name is not tied to the registration at Companies House.

Yes, you can generally use a company name that’s identical to a dissolved company abroad, so long as the name passes all the usual requirements for a valid company name in the UK.

For example, it must not be the same as another company listed on Companies House, and you cannot use sensitive words without prior approval from the Office for Product Safety and Standards

It depends how well-known the previous business was, particularly within your specific sector. If the previous business was a household name, then it may take a long time to shake off any association with it.

However, if the previous business was a relatively small outfit, then customers may not automatically make the link. Even if they do, it may be relatively quick build your own reputation in your own right.

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