As a matter of good business, you will want a name that is useful to you. For example, you might want a name that conveys the right image, tells potential customers what you offer, or simply appears early in the Yellow Pages.
Legally, you need to ensure that your name is distinct from other firms in the same line of business. If your name misleads customers or potential customers into thinking they are dealing with another firm, you could be accused of 'passing off', and end up involved in a costly court action. You need to ensure that your name is not only distinct from companies' names, but also any trading names or registered trade marks.
It's a good idea to check the Companies House index of companies, and search the Trade Marks Registry. It's also worthwhile checking whether Internet domain names using your proposed name are already being used by another business.
There are also some restrictions on the words you can use (see 17).
Note that if you are forming a company, it is convenient if the company has the chosen name. But the company can trade under a different business name (see 16).
