Changing Your Company Name: Legal Requirements and Process

Changing a company name is not an action a company should take lightly, as it may also involve rebranding the entire company. While the process is relatively straightforward, you must still comply with strict legal requirements to change your company name lawfully. Sometimes, it may be simpler for a company to change its trading name than its legal name.

Legal Requirements

When changing your company name, you must ensure the new name is unique and not too similar to any existing registered company names to avoid confusion. The law also prohibits companies from choosing names that could mislead the public or imply connections with government bodies without proper authorisation.

If you register as a private limited company, use “Limited” or “Ltd” at the end of your company name. If you are a public limited company, end your name with “PLC”. Additionally, if you want to use sensitive words or expressions, you must obtain specific permissions from relevant authorities. These might include words such as “Royal,” “Institute,” or “Bank”. The proposed name must also not be offensive or contain any prohibited characters.

You will also need to ensure that a new legal name is not similar to an existing business within the same industry or to an existing registered trade mark. Otherwise, a passing-off claim could be brought against you.

Process

Once the company has decided on a new name and ensured it is lawful and not already used by another business, the formal process begins with passing a board resolution. The company directors must convene a properly notified board meeting to discuss and approve the proposed name change. You should document this meeting in the company minutes, recording the rationale for the change and the specific details of the proposed new name.

After the board’s approval, the shareholders must pass a special resolution, which requires at least 75% approval from the shareholders who vote on the resolution. You must follow the above process unless the Company’s articles of association or shareholders agreement set out an alternative method for changing the Company’s name.

Once Companies House approves the application, they will issue a new Certificate of Incorporation displaying the new company name. It is important to note that the name change becomes legally effective when the certificate is issued. The company should retain both the old and new certificates as part of its permanent records.

Post-Change Implementation

After you receive the new certificate, comprehensively update all company documentation. Update the company’s website, email addresses, and social media accounts to reflect the new name. Following the name change, you must inform all employees, suppliers, customers, stakeholders, and third parties. Your legal contacts should remain unaffected because only the name has changed, not the legal entity. This means the name change should not trigger any termination rights for third parties. 

However, you should still seek legal advice regarding your company’s particular circumstances before changing the name. 

Company Registers

When you incorporate a company in England and Wales, you must maintain a number of company registers at its registered office or at the Companies House. This template includes these company registers.

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The company must also notify HMRC of the name change, which affects various tax-related matters, including Corporation Tax, PAYE, and VAT registration. Failure to properly inform HMRC could result in tax compliance and correspondence complications.

You must update all bank accounts with the new company name and may need to order new cheques or payment instruments. Also, insurance policies should be amended to ensure continuous coverage under the new name. You may also want to update logos and company property.

Strategic Considerations

Before proceeding with a name change, companies should conduct thorough trademark searches to ensure the new name does not infringe on existing intellectual property rights. If the company operates or plans to operate internationally, this includes checking both UK and international trademarks. Domain name availability should also be verified to maintain a consistent online presence.

The financial implications of a name change can be substantial. In addition to the basic registration fees, companies must budget for rebranding expenses. This includes new signage, marketing materials, and website updates. 

Key Takeaways

Companies should maintain detailed records of the entire name change process, including all resolutions, communications with Companies House, and notifications to stakeholders. This documentation may be necessary for future reference or legal purposes.

You should carefully manage the impact on brand recognition and customer relationships. A well-executed name change can present opportunities for renewed marketing efforts and business growth. However, it requires careful planning and implementation to maintain business continuity and stakeholder confidence.

These detailed steps and requirements ensure a smooth and legally compliant company name change process. Given the complexity and potential risks involved, you should seek professional legal advice, especially if your company operates in regulated industries or plans to use sensitive words in its new name.

If you require assistance changing your company’s name, our experienced corporate lawyers can assist as part of our LegalVision membership. For a low monthly fee, you can access unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page. 

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