Can I Reuse My Company Name After Liquidation?

Reusing a company name is sometimes possible, but only under select circumstances. This is a result of phoenix companies, businesses which close and reopen under the same or a similar name in order to avoid repaying their debts.

In order to discourage this, rules around the reuse of names have been incorporated into the Insolvency Act 1986. Failure to adhere to these restrictions could have serious consequences for directors looking to start trading again.

So what are these restrictions? And is there any way to reuse your company name?

You Cannot Reuse the Company Name

Restrictions laid out in the Insolvency Act 1986 state that you cannot reuse a company’s name for 5 years after it has undergone insolvent liquidation, unless certain exceptions are met. This doesn’t just apply to the reuse of the exact same name, but names that are similar or suggest association. For example, if your business was called “ABC Ltd”, you couldn’t simply call your new business “ABC 2026 Ltd”.

Additionally, this applies to existing or sole trader businesses – in addition to newly formed limited companies.

Reuse of the same name can be seen as an attempt to mislead company creditors as to the status of the business. As a result, failure to use a distinctive new name could result in directors being made personally liable for company debts, fined, or imprisoned.

Are There Any Ways to Reuse a Company Name?

Although it is generally restricted, there are some ways in which you can reuse your company name. There are three main means to do this.

1. The Company Is Acquired

If the business (or most of the business) is acquired from the liquidator, the company name could be reused. However, there are some rules to keep in mind.

If you, as the prohibited individual, are intending to act as director of that company, you will have to produce a legal notice. It doesn’t matter if you’re the one buying the business or not. This notice must be produced within 28 days of the sale being arranged, whether the company is being bought outright or in instalments.

The notice must be published in The Gazette and sent to all creditors.

2. Apply to the Courts for Permission

You can apply at any time during the 5-year prohibition period for permission to reuse your company name.

However, it’s best to do this within the first 7 days of the liquidation. This will grant you 6 weeks in which you can carry on using the name, or up until the court makes a decision. If the court takes longer than 6 weeks to make a decision, you’ll have to stop using the prohibited name in the meantime.

When considering your application, the court will be looking at if:

The director has any convictions
Any creditors have objected to the reuse of the name
The director has ever been disqualified from directorship
The liquidator has given a positive recommendation

3. The Name Is Already in Use

If you’ve been involved with the management of another company that uses the same or similar name for a whole 12 months before the date of liquidation, you won’t need permission.

It must have used the same name and been actively trading for at least 12 months prior to the liquidation. If it was dormant – for example, it filed dormant accounts at Companies House during this period – the exception won’t apply.

It does not apply to any non-limited business (i.e. sole traderships) and the name cannot be reused in this circumstance, even if the business has traded for 12 months prior to the liquidation.

Can I Use a Similar Company Name Instead?

In short – no.

The above restrictions also apply to the use of a similar company name. Any name that may suggest association with the liquidated company is prohibited.

For example, if your original company name was ‘ABC Limited’, you couldn’t simply switch to ‘ABCD Limited’ when starting a new company. You’d either need to get permission to use the original name or use a distinctive new name instead.

What Should I Do if I'm Using a Prohibited Company Name?

The consequences of using a prohibited name can be severe, so you should seek legal counsel as soon as possible. You may also want to:

Resign as company director
Stop assisting in the running/promotion of the business
Change the name of the business
Close the company

If you change your company name, the permission granted won’t be retrospective. You will be personally liable for any debts incurred during the period you were trading with the prohibited name.

Speak to an Expert Today

Struggling with corporate debt can be very challenging. Nobody wants to see the closure of their business, especially if it may result in the prohibition of their own intellectual property.

If you’re struggling, you should get in touch with an insolvency practitioner as soon as possible. Our expert team can guide you to the best possible outcome for your business – you may be able to avoid liquidation entirely via a CVA or administration.