Registering your company name idea is the only way to stop it being available to other prospective limited companies. If you have an idea for a company name, don’t run the risk of it being taken by someone else just because you’re not ready to start trading. You can protect your name by registering your business and keeping it on record as a dormant company. Use Business Name Checker to search for company name availability and then proceed to buy a company name for your business.
What is a dormant company?
A dormant company is a limited company that has previously been registered with Companies House but for one reason or another has never traded and therefore has no transactional accounting history. Registering a company and keeping it dormant allows you to protect your company name even if you have no plans to trade through it. Annual accounts and returns have to be filed for dormant companies just as they do for active ones, but there is much less paperwork involved. Those registering a company and keeping it dormant therefore benefit from a fully protected company name, but with minimal administrative responsibility.
Why register a dormant company?
In most cases, they are registered to simply protect a company name and stop a competitor from securing it.
Having a dormant company also gives sole traders the option of registering a company name for safekeeping if they foresee future expansion that may see them start operating as a limited company or if a particular name is important to them for whatever reason.
Another example of when a company might be registered and kept dormant is when someone wants to register intellectual property under a specific company name but does not plan to trade through the company to which the intellectual property rights apply. Registering it under a dormant company makes this possible.