Company Name vs Trading Name: The Key Differences
Company Name (Legal Name)
Your company name is your business's official, legal identity registered with Companies House. Think of it as your business's "birth certificate name."
Key characteristics:
Legally required - every limited company must have one
Registered with Companies House - appears on all official documents
Unique - no other company can have exactly the same name
Protected - gives you legal rights to that name
Permanent - changing it requires formal procedures and costs
Must end with "Limited," "Ltd," "PLC," or "LLP" (depending on structure)
Example: "Virtual Mail & co Limited" is the legal company name of Mail & Co
Trading Name (Business Name)
Your trading name is what you're known as in the marketplace - it's your "stage name" for business.
Key characteristics:
Optional - you can trade under your company name if you prefer
Flexible - can be changed easily without formal registration
Multiple allowed - you can have several trading names
Marketing focused - designed to appeal to customers
No legal protection - unless trademarked separately
No company suffix required - can be any name (within legal limits)
Example: "Mail & Co" could be the trading name (dropping the "Limited")
Real-World Examples
Let's look at some familiar businesses:
Google:
Company name: Alphabet Inc.
Trading name: Google
McDonald's UK:
Company name: McDonald's Restaurants Limited
Trading name: McDonald's
Your Local Corner Shop:
Company name: Smith Retail Limited
Trading name: "Corner Shop Express" or "Smith's Local Store"
Why Use Different Names?
Reasons to Use a Trading Name:
1. Better Marketing Appeal
"TechSolutions4U Limited" (company name) vs "TechSolutions4U" (trading name)
The trading name sounds more approachable and less corporate
2. Shorter and Catchier
"Johnson Property Development Limited" vs "JPD Homes"
Easier to remember and fits better on business cards
3. Multiple Business Lines
Company name: "Diversified Services Limited"
Trading names: "Clean & Tidy" (cleaning), "Fix-It Fast" (repairs), "Green Gardens" (landscaping)
4. Rebranding Without Legal Changes
Keep the same legal structure but present a fresh face to customers
Avoid the costs and paperwork of changing your company name
Legal Requirements and Considerations
What You Must Display:
On official documents (contracts, invoices, letters):
Your full company name must appear
If using a trading name, both names should be shown
Example: "Invoice from Clean & Tidy (trading name of Johnson Services Limited)"
On your website and marketing:
You can use your trading name prominently
Your company name should appear somewhere (often in small print or "About Us" section)
At your business premises:
Your company name must be displayed
Trading name can be displayed more prominently
Banking and Finance:
Bank accounts are typically opened in the company name
You may need additional documentation to accept payments in trading names
Some banks allow trading name additions to accounts
Protecting Your Names
Company Name Protection:
Automatically protected once registered with Companies House
No other company can register the identical name
Similar names may still be allowed
Trading Name Protection:
No automatic protection - anyone could potentially use a similar trading name
Consider trademark registration for important trading names
Monitor for competitors using confusingly similar names
Changing Names: What's Involved?
Changing Company Name:
Requires special resolution by shareholders
£10 fee to Companies House
New certificate of incorporation issued
Must update all legal documents, contracts, bank accounts
Can take several weeks
Changing Trading Name:
No formal registration required
Simply start using the new name
Update marketing materials, websites, business cards
Inform customers and suppliers
Can be done immediately
Common Mistakes to Avoid
1. Using Restricted Words
Both company and trading names have restrictions
Words like "Bank," "Royal," "Government" need approval
2. Trademark Infringement
Even if a company name is available, the trading name might infringe existing trademarks
Always check trademark databases
3. Inconsistent Usage
Don't confuse customers by using names inconsistently
Establish clear guidelines for when to use which name
4. Forgetting Legal Requirements
Always include your company name on official documents
Don't hide your legal identity from customers
Best Practices for Your Business
For New Businesses:
Choose a flexible company name that works as both legal and trading name
Keep it simple - avoid overly long or complex names
Check availability across company names, trademarks, and domain names
Think long-term - will this name work as you grow?
For Established Businesses:
Review your current setup - are both names working effectively?
Consider trademark protection for valuable trading names
Ensure compliance - are you meeting all legal display requirements?
Plan any changes carefully - consider customer confusion and rebranding costs
The Bottom Line
Company name = Your legal identity (required, protected, formal)
Trading name = Your market identity (optional, flexible, customer-facing)
Most small businesses start with a company name that works well as a trading name too. As you grow, you might develop separate trading names for different services or to create better market appeal.
The key is understanding your legal obligations while maximizing your marketing flexibility.
Need help choosing the right business structure and names for your company? At Mail & Co, we provide business address services and company formation support to help UK businesses establish their legal and market identities properly. Contact us to discuss your business setup needs.
