After Closing a Company: Does the Name Become Available?

Starting a business often involves a crucial first step: choosing a name. This name not only identifies your brand but also needs to be unique within the marketplace. However, what happens to this name if your business ventures into closure? This is an important consideration for entrepreneurs in the UK, especially those looking to start anew or contemplating the legacy of their business name.

Here’s what you need to know and how to check if a company name is available.

Understanding Company Dissolution in the UK

When a company in the UK ceases operations, it can be dissolved either voluntarily or by compulsory strike-off by Companies House. Voluntary dissolution occurs when the directors decide that the company has served its purpose or is no longer viable. Compulsory strike-off happens when Companies House believes the company is no longer carrying on operations or not complying with its obligations.

Can I use the name of a closed company?

Upon Dissolution:

• • Immediate Availability: During the voluntary dissolution process, the name remains registered. This period allows for any potential issues, like debts or legal actions, to be resolved.
    The name typically becomes available after the company has been dissolved, this usually takes 2 months.
    After this time, if no objections are raised (like from creditors or legal disputes), the name should theoretically be free for use.

Reusing the Name:

• • New Registration: After the name becomes available, you can register it with Companies House for your new venture. However, ensure that no trademark issues exist, as this could lead to legal challenges.
  • Reputation: Consider the reputation of the previous company. If it closed under negative circumstances, this could impact your new business.

Steps to Take if You’re Interested in the Name

• Check the Register: Use the Companies House service to see if the company has indeed been dissolved and for how long.
• Trademark Search: Perform a trademark search to ensure the name isn’t protected under intellectual property laws.
• Legal Advice: It might be prudent to consult with a solicitor specialising in business law, especially if there’s any complexity around the name’s previous use.

Conclusion

Closing a company does eventually free up its name for reuse, but there are procedural and legal hoops to navigate. For UK entrepreneurs, understanding these nuances is crucial when considering a previously used business name. Remember, while the name can be a powerful brand asset, its history might also carry implications or benefits. Always proceed with diligence, ensuring all legal bases are covered before embarking on your new business journey with a name that once belonged to another.

Remember, the right name can set the tone for your business’s future, so choose wisely.

Related: Check Available Company Names with Companies House.