Company name advice

[Pablomartini]

my company went into receivership last week, and myself and two director owners were made redundant.

i have been speking with the receiver about purchasing the assets and also with the landlord about renting the premises. i want to start my own ltd biz but unsure whether to keep name similar (recognition) or changing totally. any advice on company name? regards

[I.P Paul]

I suppose it depends on whether when the last company failed it left debts and bad feeling within the customers you had. You dont want to really be associated with a company with a bad reputation and tarred with the same brush if you intend to learn from the mistakes made last time and provide a top service.

[David Griffiths]

Take proper legal advice before you incorporate a company with a similar name.

I can't put my finger on a link at the moment, but I'm sure that if you create a new company with a similar name to the old one, are a director of both old and new, and the new one becomes insolvent you can be charged with a criminal offence.

Perhaps one of the lawyers will confirm this. If not, pay for the advice.

[M-C Hoare]

There is specific provision in the Insolvency Act (S216 & 217) which means that you can be personally liable for the debts of the new co if the name is sufficiently close to the name of a previous co which went into insolvent liquidation and you were a director or shadow director of that previous co within 12 months of its insolvency and are involved in the management of the new co.
AND if you are in any way involved in a business using the previous co's name or sufficiently similar name (whether ltd or not) you are liable to prison or a fine or both.
The prohibition on the name lasts for 5 years except if you get permission of the Court.
Marie

[mahutchinson]

Obviously you cannot use the same name until the current company is struck off and if it is too similar it will be refused at Companies House anyway. If it is unclear to you whether it is too similar give Companies House a call before doing anything.