It is possible to change the name of a company while it is still under administration

Facing financial distress is a stressful time for any business owner, particularly when considering a name change with the appointed insolvency practitioner. It can feel like the walls are closing in during insolvency, and the future is uncertain, but a change of name might provide a fresh start, especially with the guidance of a licensed insolvency practitioner. But what if there was a way to signal a new beginning, even under administration?

Believe it or not, changing your company’s name during administration is possible and can be done for £8 for online submissions via Companies House. This can be a powerful tool for a company looking to shed the baggage of its past and project a more positive image through a change of name, especially if the company is entering administration and must comply with the compulsory requirements.

Here at SGT Law Firm, we understand the complexities of navigating administration. We’ve helped countless businesses through this challenging process, including those who wanted to rebrand their limited companies for a brighter future, ensuring compliance with the Companies Act 2006.

Why Consider a Name Change During Administration?

There are several reasons why a company in administration might consider a name change:

Dissociation from Debt is crucial during insolvency proceedings

A new name can help distinguish between the old, struggling company and the new, hopefully more successful version. This can be crucial for regaining customer and investor confidence during the working days following the name change.

Positive Image

A well-chosen name can significantly enhance your company’s image, especially for limited companies seeking to rebrand. Let’s face it, being in administration doesn’t exactly scream success. A new name allows you to present a fresh face to the world, particularly if you are looking to change its name in a way that focuses on turnaround and a positive future.

Strategic Repositioning

The company’s name may no longer accurately reflect its product or service offerings, especially if it is undergoing liquidation and needs to file form nm01 for a name change. A new name can be an opportunity to rebrand and better align your image with your current business direction, particularly if you are looking to help us improve your brand’s perception through a written or special resolution.

It’s important to note that appointing an administrator can open up opportunities for a change of name for the company, which may help us improve the company’s future prospects. While a name change can be a powerful symbol, the underlying reasons for administration still need to be addressed by an insolvency practitioner.

The Road to Rebranding: Legal Considerations

So, you’ve decided a new name is the right move. Now what? Here are some key things to keep in mind regarding insolvency, the change of name, and the Companies House website:

Administrator Approval

Don’t rush out to pick a catchy new name just yet; consider how it will fit within the framework of company administration and the Companies House requirements, including the compulsory procedures. During administration, the administrator holds significant control over company decisions. You will need their approval before proceeding with a name change, as you must give notice to the relevant authorities and make provision for creditors.

Shareholder Vote

While the appointed insolvency practitioner has significant control, they can’t make unilateral decisions regarding the incorporation of a new name without following the proper process as per the Companies Act 2006. You’ll still need approval from a majority of shareholders through a special resolution.

Company Registration

Ensure that your new name complies with the Companies Act 2006, is registered on the Companies House website, and aligns with your articles of association. Once everyone’s on board, you’ll need to officially register the change of name with the relevant government authority, such as Companies House, by completing form nm01.

Pro Tip: Consider the implications of the Companies Act 2006 when planning to change a company name, especially in the context of a company name in administration.: Working with a reputable law firm like SGT Law Firm can make navigating the legal aspects of a name change during administration much smoother. Our experienced team can help you with the entire process, from ensuring administrator and shareholder approval to completing the official registration, especially if you are navigating through receivership.

Is a Name Change Right for Your Company?

There’s no one-size-fits-all answer to this question, as each situation regarding company name in administration is unique. The decision to change your company’s name during administration is a strategic one that should be carefully considered. Here are some additional factors to weigh when contemplating a name change during insolvency, including the potential impact on your enquiry processes.

Cost

Changing your company name involves legal fees, as well as costs associated with updating marketing materials, signage, and other branding elements, which may be higher in the context of a company name during administration.

Brand Recognition

If your company has established brand recognition, a drastic name change could be counterproductive, particularly during a period of creditors voluntary liquidation. Consider if a slight modification or a tagline might achieve your goals instead of a complete name change with the appointed insolvency practitioner.

Communication Strategy

A name change requires a well-developed communication plan to ensure all stakeholders, including customers, creditors, and employees, are aware of the shift in accordance with gov.uk guidelines.

Embrace Change, Navigate Wisely

Changing your company’s name during administration can be a positive step towards a brighter future, especially if you follow the correct procedures outlined in the Companies Act 2006. However, it’s important to approach it strategically and navigate the legal process carefully, especially when dealing with the insolvency service.

Contact SGT Law Firm Today!

Confused about the legal intricacies of changing your company’s name during administration and how it affects your filing submitted to Companies House? We can help clarify your enquiries regarding the name change with the appointed insolvency practitioner. The experienced team at SGT Law Firm is here to help with your incorporation needs, including assistance with filing form nm01. We can guide you through the process, ensuring a smooth and successful rebranding, including the necessary steps for your certificate of incorporation. Contact us today to schedule a consultation. Don’t let financial difficulties stop you from building a bright future for your business, even in the face of insolvency; remember, it’s possible to rebrand your limited company and change its name via Companies House.