Does a company name need to include Limited or Ltd?
Limited companies in the UK can operate under their registered name or a different business name. Typically, private companies must include “Limited” or “Ltd” at the end of their official company name during incorporation. This requirement applies unless the company qualifies for an exemption.
Using “Limited” or “Ltd” is just one of the several company name rules that you must follow when selecting a company name. Some rules ensure the uniqueness of a company name, while others restrict the use of offensive or “sensitive” words and expressions.
‘Limited’ should not be used in trading names
Most companies operate under their official registered name, typically ending in ‘Limited’ or ‘Ltd.’
If you conduct business using your registered company name, you must display the full name, including ‘Limited’ or ‘Ltd.,’ on specific signs and stationery. However, businesses also have the option to operate under an alternative trading name.
A trading name can be any name that does not violate another company’s trademark and does not include any offensive or ‘sensitive’ terms. Additionally, a trading name must not contain the following words or abbreviations:
- Limited
- Ltd
- Limited Liability Partnership
- LLP
- Public Limited Company
- PLC
- any Welsh equivalents of these English words
Where you must display your company name in full
While business names can be used for general trading purposes, the full registered company name must also be prominently displayed on:
Physical signs
Companies must display their full company name on a sign at their registered office address and any other locations where the business operates. The sign must be visible at all times. However, this requirement does not apply to private residential addresses.
Websites, emails, and stationery
Your registered company name must appear on business websites, emails, letters, promotional materials, and all other types of company stationery. This is to ensure that the public clearly recognizes your business as a limited company.
Exemption from including ‘Limited’ or ‘Ltd’ in a company name
Under section 60 of the Companies Act 2006, limited companies may omit the word ‘Limited’ or ‘Ltd’ from their name under certain conditions. This exemption applies if:
- The company is a registered charity or is limited by guarantee (as opposed to limited by shares); and
- Its articles of association state that the company:
- Promotes or regulates commerce, art, science, education, religion, charity, or any profession;
- Is prohibited from distributing profits to its shareholders (e.g., through dividends); and
- Requires that, in the event of winding up, the company’s assets will be transferred to another entity with similar charitable objectives.
The company formation application form includes a section to claim this exemption from using the word ‘Limited’ in the company name.
To claim exemption after incorporation, limited by guarantee companies must complete Companies House form NE01.
Do you have any other questions?
We’ve covered the requirements for displaying your company name, detailing when to use “Limited” or “Ltd.” and outlining the conditions under which you can omit these terms. Including these designations is mandatory for limited companies, except in specific cases such as charitable organizations. We hope this article has clarified your understanding.
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