When you're setting up a business, you'll come across two terms that sound similar but mean different things: “company name” and “trading name”. Most founders assume they're the same, but they're not, and understanding the difference can save you confusion (and admin headaches) later.
Here's what each one means, when you need both, and how they work together.
What is a company name?
Your “company name” is your business's official, legal name. It's the one you register with Companies House when you incorporate, and it appears on all legal documents, contracts, invoices, and tax returns.
For a private limited company, your company name must end with "Limited" or "Ltd". For example:
- Bright Lab Limited
- Foundrs Holdings (UK) Ltd
This name is legally protected, no other company in the UK can register the same name or one that's too similar. Once you register it, it stays on the official record until you change it or close the company.
Foundrs tip: Your company name is the one HMRC, Companies House, and banks will always use. Think of it as your legal identity.
What is a trading name?
A “trading name” (also called a "business name" or "trading as" name) is the name you use day-to-day with customers. It's the brand people see, the name on your website, social media, and shopfront. Unlike your company name, you don't have to register a trading name with Companies House, and you can have more than one.
For example:
- Your company name might be: “Bright Lab Limited”
- Your trading name could be: “Bright Marketing”
You'd trade as "Bright Marketing" publicly, but all your legal paperwork would still say "Bright Lab Limited."
Why use both?
Some businesses use the same name for both, especially if the brand and legal entity match. But many founders choose different names for a few practical reasons:
- Your ideal brand name was already taken as a company name, so you registered something else legally but trade under your preferred name.
- You run multiple brands under one company. For example, one Ltd company might own two separate trading names.
- You want flexibility. If you rebrand later, you can change your trading name without the admin of changing your registered company name.
- Your company name includes "Ltd” which doesn't always fit your brand style, so you drop it for marketing.
The legal bit
Even though trading names don't need formal registration, there are still a few rules:
1. Your trading name can't mislead customers or suggest you're a different type of business.
2. You must still display your official company name on invoices, contracts, letters, and your website (usually in small print at the bottom).
3. Your trading name can't be trademarked by someone else. Always check the UK Intellectual Property Office (UKIPO) database before settling on a name.
If someone else owns the trademark for your trading name in your industry, they can force you to stop using it, even if you never registered the name officially.
How to use a trading name
If you decide to trade under a different name, here's what you need to do:
1. Check it's available - Search the UKIPO database to make sure the name isn't trademarked.
2. Display your legal name - Include your registered company name (the one ending in "Ltd") on all official documents.
3. Update your branding - Use the trading name on your website, social media, and marketing materials.
4. Tell your bank (if needed) – Some banks let you add a trading name to your business account. This can make payments smoother if customers pay using your brand name.
You don't need to file anything with Companies House, but keeping clear records helps avoid confusion later.
Example: How it works in practice
Let's say you register your company as “Bright Lab Ltd”. Later, you decide to launch a marketing service and want to be known as “Bright Marketing”.
Legally, your business is still Bright Lab Ltd. That's what appears on your tax returns, your contracts, and Companies House records. But publicly, you operate as “Bright Marketing”. That's what's on your website, business cards, and social posts.
On your invoices, you'd write:
Trading as: Bright Marketing
Registered company: Bright Lab Ltd
Company number: 12345678
Simple as that.
Can you change your company name?
Yes, you can change your registered company name at any time through Companies House. It's straightforward, but you'll need to update your documents, bank details, and anywhere else your legal name appears. If you're just testing a new brand or direction, using a trading name first can save you that admin.
Which should you choose?
If you're starting out, here's a simple guide:
- Same name for both? - Great if your brand and legal name match. No extra admin, no confusion.
- Different trading name? - Useful if you want flexibility, run multiple brands, or your ideal name was already taken.
- Either way works, it just depends on your setup and plans.
In Summary
Your “company name” is your legal identity. It's registered with Companies House and appears on all official paperwork.
Your “trading name” is what customers see. It's your brand, your public face, but it doesn't replace your legal name.
You can have both, and many businesses do. Just make sure your official name always appears where it's legally required.
Foundrs helps you get your company name right from the start, checking availability, verifying compliance, and keeping your details organised as you grow.
