If your company has gone into liquidation, you may be wondering whether you can reuse the same company name in a new business.
It’s a common question, especially if you’ve built up brand recognition, supplier relationships, or customer trust. However, there are strict legal restrictions on reusing a company name after liquidation, and getting it wrong can lead to serious consequences.
The Legal Rules on Reusing a Company Name
Under Section 216 of the Insolvency Act 1986, if you were a director of a company in the 12 months before it went into insolvent liquidation, you cannot use:
- The same company name
- A name that is too similar that it could suggest an association
This restriction applies for five years from the date of liquidation, and the rules are designed to protect creditors from potential misuse.
If you breach these rules, you could face fines or even prosecution. You may also be disqualified as a director and, in some cases, become personally liable for the debts of the new company. That’s why it’s essential to take proper advice before reusing a company name.
Are There Any Exceptions?
There are limited ways you may be able to reuse a company name after liquidation, but they must be handled properly. Here are some of the options that you may have:
1. Buying the Business from the Liquidator
If you purchase all (or substantially all) of the insolvent company’s business from the liquidator, you may be able to continue trading under the same name.
However, you must follow the formal notice procedure, including notifying creditors and publishing notice in the London Gazette within strict time limits.
2. Applying to the Court
You can apply to the court for permission to reuse the company name. The application must usually be made within seven business days of liquidation, and timing is critical.
3. Using an Existing Company Name
If you already have another company that’s been trading under that name (or something very similar) for at least 12 months before liquidation, the restriction doesn’t apply.
Most people choose to buy the business from the liquidator, but whichever option you choose, you should seek advice from a solicitor and make sure you’ve followed all the legal requirements.
What Is the Notice Requirement?
If you intend to reuse a company name under the permitted exceptions, you must:
- Notify creditors of the old company
- Place a formal notice in the London Gazette
There is a government-issued template available, but accuracy and deadlines are crucial. A mistake could result in personal liability.
Why Getting Professional Advice First Matters
If you’re thinking about reusing a company name, it’s not something you should try to figure out on your own. While a liquidator handles the closure of the insolvent company, they cannot advise you on how to reuse the name. The rules are strict, and you will need support from a solicitor or accountant who understands the legal framework.
Although there will be professional fees involved, it will be a small price compared to the risks of being fined, banned as a director or held personally liable for company debts.
If you are considering starting again after liquidation, taking professional advice early will help you get the process right, avoid unnecessary risk, and move forward confidently.