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By miguel-ingles
- In Uncategorized
It is possible that, due to various reasons, the directors of a company need to modify its corporate name. Although the process is not complex, you should take into consideration some factors, so the authorities accept the variation. In this article, I will explain how to change a company’s name in the UK.
Why you Should Change a Company’s Name in the UK
The company’s decision of changing its corporate name might be the cause of different reasons. The first one would be that another business has filed a lawsuit against you for using a denomination that is too similar to theirs. To avoid this, you can access public registers and investigate which names are already selected, although, in the UK, the corporate name must be unique.
Also, it can happen that the company got involved into some scandal, or it wants to change its business activity. The name change is the first step to update the corporate image of an enterprise.
At last, it is possible that the name is difficult to pronounce or remember. This might be because it uses a person’s name or an acronym. You should avoid these type of designations. Instead, try to use more simple, memorable and distinguishable alternatives.
Important Considerations
Necessary Data to Change a Company's Name in the UK
To apply for a name change, authorities need certain data of the company. These are: the new and old denomination, the email, and password used to register the corporation into the Companies House, the company’s number, and the authentication code.
Authentication Code
This code is like the digital signature of a corporation. You will need it when filing any document to the authorities. You have to register into WebFiling and follow the steps they indicate you. When you have completed the process, they will send you the code to the company’s registered office within 5 days. You must know that it is confidential, and you should not share it if it is not necessary.
Periods
When you file this form online, if you opt for the standard service, the periods for the name change vary from 1 to 2 working days. However, if you choose the express service, they will finish the process in less than 24 hours.
On the other hand, if you send the application by post, there are not established periods.
Company Change Name Certificate
When the Companies House accepts the denomination change, they will send you a company change name certificate. It will include the following data: both the old and new names, the company’s number and the date they processed it.
How to Change a Company’s Name in the UK
There are two options to start the company’s name change process. The first one is that the Articles of Association permits the directors to modify the denomination of the business. Otherwise, they must call an Extraordinary General Meeting where the shareholders will vote about this matter. To accept the proposition, they require a majority of, at least, a 75%.
Then, if they approved the change, the directors would select the new corporate name. That being said, as it happens when setting up the business, it must not have any similarities with other enterprises’ denominations. In addition, it must comply with other requisites, which you can see in this webpage.
The next step will be to notify the Companies House about the changes. Again, you can do this in different ways. The first and more simple one would be to do it online. You will have to pay 20 GBP or 83 GBP, in case you need them to process the variations in less than 24 hours.
The other option is to send the application by post. If the shareholders apporved the change via voting, you will file the NM01 form, alongside a copy of the resolution. However, if you are doing the switch with permission of the Articles of Association, you must send the NM04 form. In both cases, you must file a 30 GBP cheque alongside the application.
You have to keep in mind that the change will not be official until the Companies House lets you know. In addition, you must inform His Majesty’s Revenue and Customs (HMRC) about the variation.
In ukstartcompany, you will learn the most important aspects of establishing and running a company in the UK.