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The companies house act permits 6 months from time of set up for your competitor to complain. You can trade under their name should you so choose to do so but your real name has to appear as your registered office.
We had a company do this to us using our name which did not come as (passing off) and we sent them all the legal letters but in truth there is very little they can do and suggest you refer them to companies house should they wish to make a formal complaint. However i would be really cheeky and advise you are not breaking any law but would be happy to remove the name for £2,000 as an admin fee
Good luck
CBN
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