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Can I Re-Use My Company’s Name?

There are very strict rules in reusing a company’s name if the directors of the new company are the same as that which has gone into liquidation.

Section 216 of the Insolvency Act 1986 is the relevant legislation that covers this particular subject and can be summarised as follows.

If you have been, in the last 12 months, a director of a company that has gone into liquidation, you may not use the same or similar name if you are a director of a new company for a period of up to 5 years.

If you are found to be in breach of this legislation, you may be liable for a criminal conviction that results in either a fine or imprisonment.

There are, however, certain exceptions to this rule and providing that you comply with the terms of the exceptions, then it is possible to be able to use the same or similar name in a new company going forward.

Depending upon your circumstances, it is suggested that you either take legal advice in respect of this from a solicitor or from an insolvency practitioner, to ensure that you do not fall foul of these particular conditions and end up facing prosecution.

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