Why does a Limited Company have to be created to Reserve a Name?

It is not possible to have more than one company with the same name. If you are thinking of starting your own company but are not quite ready, by reserving a name you make sure no-one else takes the name you want.

If you are running a business as a sole trader or partnership, reserving the name (as a limited company) makes certain that a company does not set up with the same name as your business.