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When planning your company registration the name of the business is often one of the first considerations. Some people instantly know their business name, whilst others spend many hours choosing their trading style. Some people prefer to select a company name that either distinguishes itself from its competitors or contains something unique or personal.

One of the most common ways of selecting a company name is to use something related to your own name. A quick glance through your local classified adverts should introduce you to many personalised business names. White and Son Limited, Davies and Associates, Jarvis & Brown Limited are fictitious examples of personal business names. This can be beneficial if your business is known locally. Your company may be seen to be more personal by its customers, and it often works well within small geographical areas. The downside to a personal company name is that it gives no first impression of what your business does.

A popular choice when starting a business is to choose a company name that is ‘descriptive’. Your company name helps potential clients and customers identify what your business does. Examples of this may be to call your business The Window Company Limited, Office Cleaning Services Limited or Online Web Design Services. Whilst this undoubtedly explains your core business, it is not unique, it may be similar to other business names, and your business may not stand out from the competition.

A less personal option is to use a business name that is ‘associative’. This is a company name that people will associate a service or product to. Examples of this are a telephone company called Green Light Telecom or a camera shop called One Click Pics. These names offer some differentiation but may not ultimately set your company aside from its competitors.

An alternative is to choose a company name that is ‘freestanding’. This has little or no connection to the business activity of the company. There are many popular brand names that illustrate this point. Consider, Samsung, Sony, or Phillips, these names are instantly recognisable to most people as providers of technological products. This is a good way of distinguishing your company from other businesses within your field but you need to know your market.

When starting your company formation put a little thought into how you want your business to be perceived. What is your market, who are the competition and how will you be recognised. This may help you decide what to call your company.