If you’re wondering whether it’s possible to change a company name before or during administration, the answer is yes. It’s relatively common for businesses to change their name prior to starting an insolvency procedure, and company administration typically allows for this.
Voluntarily entering administration involves appointing a licensed insolvency practitioner (IP) who, having assessed the company’s position, formulates a plan for the future. Initially you would need to approach them to discuss a change of name for the company, but in most cases it’s unlikely to cause a problem.
There are various reasons why directors would want to change their company name in administration, one of which could be to remove the association of debt with their ‘brand’ and herald a new start.
Changing a company name in administration is usually a straightforward process, whether it happens prior to entering the procedure, during, or afterwards, and with the support of the administrator you’ll be able to complete the necessary steps with confidence.
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A change of company name takes place either by written or special resolution, both of which involve a vote by members. A minimum of 75% of shareholders (by value of shares) must vote in favour of changing the company’s name, and a resolution is then passed.
The resolution is signed and sent to Companies House along with form NM01 ‘notice of change of name by resolution’ and the fee. This is currently £10 for postal submission, and £8 for filing online.
The Articles of Association also need to be amended and submitted to Companies House at the same time. It’s worth noting that the name of the company is not officially changed until Companies House issue a certificate of incorporation on change of name.
You might receive the certificate electronically or through the postal system depending on how you filed form NM01, but it typically takes around five working days from receipt at Companies House.
If your company is experiencing financial decline and you’re considering entering administration voluntarily, or you would like more information on changing your company name in administration, Real Business Rescue can help. We operate an extensive network of offices throughout the UK and offer free same-day consultations. Please contact one of the team to arrange a meeting near you.