I'm thinking about going freelance and having a decent name, and in near future probably convert to a Limited company.
However I found on businesslink.gov.uk that the company name is very similar to a existing one (studios -> studio) however the company name in question is dissolved.
Technically I can acquire the company name but I want 'studios' instead of 'studio' so I'm not sure what I can do. Is it allowed to have similar names to dissolved companies?
If the company is shown as dissolved by Companies House, then it no longer exists, so it should be perfectly fine to start a new business with a similar name.
The only time this may not be a good idea is if there was any adverse publicity with the old company, where potential clients might confuse you with them. A simple Google search should help here.
As mentioned above, it is critical to get the .com domain name, or at least the .co.uk, both ideally.
If you are freelance (self-employed effectively), you can use a "trading as" name, but it mustn't imply that you are a Ltd, so "ABC Studios" is fine, but not "ABC Studios Ltd". If/when you incorporate as an Ltd then you'd naturally be known as "ABC Studios Ltd".
You need to tell your bank about your trading names, so they can accept cheques payable to your trading name and pay them into your account.
Don't get a company name that's that similar to another's. And it's really all about the domain name. Get a real domain name (like .com, .net, .org or your country's standard (.co.uk)). Don't use a domain name with an odd suffix.
If you do this, you will be easy to find and professional.