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If you set up a business in the United Kingdom, you no longer need to register your business name with any government department, so long as your business is structured as a sole trader or a partnership. However, if you set up a Limited Company, you must register your companies name when you register the company, and you will not be able to use a name which is already on the Company House register of names. You can learn more about setting up a limited company here, or you can search the company house register of names here.

If you are operationg as a sole trader or in partnership, you must make sure that your business name is not the same, or similar, to that of any large or well known company. You must also make sure that your name is not similar to that of any small business in your locality - problems are unlikely to arise from two shops with the same or similar names if they are far apart, for example, two takeaways called 'The Bejing Takeaway', one in London and one in Edinburgh.
If your name is similar to that of someone elses, you may find yourself accused of 'passing off', literaly, trading on the back of someone elses reputation, and you may be sued.

The Business Names Act 1985

All trading names are now governed by the business names act 1985. This sets down important rules, such as the fact that you must display your business name at your place of business, on stationary, correspondance and invoices. Norther trading standards have a guide to the business names act. To view it, click here.