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Nick, Jacqui’s post is on the money.
A few further details are also worth noting.
If another business has been using the same name in the same jurisdiction (and internet blurs these), then they may make a “common law trademark” claim against you, which in real terms may be like a registered trademark claim (though harder to prosecute).
Besides perhaps having a chat with Jacqui or someone with her expertise, it may well be worth taking a step back and looking at the long term picture before launching into the enterprise.
My advice to all is avoid at all costs using a business name / web domain remotely similar to any registered company/business or trademark, even if not neccessarily similar to your own business.
Yes it restricts your options a lot in the short term, but it may avoid headaches in the longer term.
All the best