Business Names – Legal Pitfalls to Avoid

Choosing a name for your business can be one of the most exciting early decisions — it’s how customers will identify you, how your brand will grow, and how you’ll market your services. But it’s not just about creativity. There are serious legal considerations too.

Getting your business name wrong can lead to expensive rebranding, legal disputes, or even being forced to stop trading under that name.  Starbucks made Starboards Dog Daycare change their name, as did Louis Vuitton when Chewy Vuiton went into the handbag trade.  And the case of Victoria’s Secret v Victor’s Little Secret went all the way to the US Supreme Court.

In this blog, we’ll walk you through the common pitfalls and how to avoid them.

1. Check Availability (It’s Not Just About Domain Names)

Many business owners think that if a .co.uk or .com domain is available, they’re good to go. But the legal side goes far deeper.

You’ll need to check:

• Company names registered at Companies House (if you’re setting up a limited company)

• Trademarks that have been registered with the UK Intellectual Property Office (UKIPO)

• Business names used by unregistered sole traders or partnerships

• Names of other brands operating in your sector — even if they’re not registered

It’s not enough to say “there’s no identical match.” If your name is too similar to an existing one, you could be in receipt of a strong letter before long.  Major brands actively monitor for businesses and trading names that are similar to their own.  When they find one, they tend to try to stamp on it immediately.  As a rule of thumb, if you’re in any doubt, choose a different name.

However, if you’re particularly keen on a name that you think might cause a problem, it can be a good idea to write to the other company, to ask if they mind.  It’s certainly worked for one of our clients before.

2. Avoid “Passing Off”

Even if a competitor hasn’t trademarked their name, they may still have legal protection under the law of passing off. This applies when:

• They’ve built up a reputation under their name

•  Your similar name could confuse customers

• That confusion causes them harm (e.g. lost business or damage to their brand)

This means you could be legally forced to change your name — and potentially pay damages — even if there’s no formal registration involved.

3. Watch for “Sensitive Words”

Certain words are restricted by law in the UK. If your name includes a sensitive word or expression, you may need government approval or specific legal justification to use it.

Examples include:

•  “Group” – implies a corporate group structure

• “International” – implies a global presence

• “Institute” – may require professional or academic status

• “Chartered”, “Council”, “Authority” – these are often protected for official bodies

Companies House has a full list of these, and using them incorrectly can lead to your application being rejected — or worse, legal action later on.

4. Avoid Misleading Descriptions

You cannot use a name that suggests:

• You are regulated when you are not

• You have credentials you don’t possess

• You’re connected to government or official bodies; like calling yourself. “HMRC Solutions”

This can fall foul of trading standards, advertising law, and regulations around fair trading — even if it wasn’t your intention to mislead.

5. Think About Branding and Trademarking

If you want long-term protection of your business identity, you should seriously consider registering your trading name or logo as a trademark. This gives you exclusive rights to use that mark in your sector, and makes it easier to take action against copycats.

But — a trademark application can be blocked if someone else is already using a similar name. That’s why checking the trademark register before you fall in love with a name is important.

6. Check the Global Picture

Are you planning to sell abroad — or even just market online? You may want to check:

• Whether the name has a negative meaning in another language

• Whether it’s already trademarked in countries where you’ll be active

• Whether the domain names and social media handles are free in key markets

It’s all part of future-proofing your brand and avoiding international legal headaches.

How We Can Help

At Your Legal Team, we help start-ups and growing businesses get their legal foundation right — including helping you:

              •            Check the legal availability of your preferred name

              •            Understand the risks of similarity or infringement

              •            Register your name or brand as a trademark

              •            Comply with Companies House and trading rules

It’s a small step that can save you thousands in future rebranding or legal claims. If you’re choosing or changing your business name, get in touch — we’ll help you do it properly from day one.