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Company Names

Contents

Introduction
1. Choosing a company name
2. Change of company name
3. Sensitive words and expressions
4. Exemption from using the word 'limited' in a company name
5. Directions to change a company name
6. How the control of names applies to other company and business types
7. Further information
This is a guide only and should be read with the relevant legislation.



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Introduction


This booklet explains:
  • the rules and restrictions on the choice of company names both when a company is formed and when it changes its name;
  • when Companies House will not register a company name and when the use of sensitive words or expressions will need to be justified or need prior approval from a recognised authority;
  • when you can object to the registration of a particular company name, and also what to do if your company name has been objected to and you are directed by the Secretary of State to change the name;
  • how to change a company name, but not how to form a company (for this, please see our booklet, 'Company Formation').
The booklet will also be useful to unincorporated partnerships and sole traders who use a business name, companies incorporated overseas which trade from an address in Great Britain, open-ended investment companies, ,European economic interest groupings and limited partnerships.

You will find the relevant law in the Companies Act 1985 (as amended in 1989 and later) and in the Company and Business Names Regulations (as amended).


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CHAPTER 1

Choosing a company name


1. Can I choose any name I want for my company?

No. Several regulations can affect your choice. For example, all company names must end with the words 'Limited', 'Unlimited', 'Public Limited Company', or their abbreviations or Welsh equivalents. Certain companies may apply for exemption from using 'limited' - see chapter 4 for more details.

2. Could my choice of name be rejected?

Yes, if:
  • it is 'the same as' a name already on the index - see question 3 below;
  • it includes the words 'limited', 'unlimited' or 'public limited company' anywhere except at the end of the name. This applies equally to abbreviations or the Welsh equivalent of the words;
  • it is offensive;
  • its use would be a criminal offence.
In addition, some names need the approval of the Secretary of State before they can be registered. These include names which contain words prescribed by regulations (see question 4 below) and names which suggest a connection with central or local government. If these categories are avoided, you can normally have your choice of name.

Before you apply to set up a company, or do anything to change its name, it is a good idea to search the index at Companies House to see if there are already any companies with names similar to the one you want. If in doubt, call us on 0870 3333636 or search the website company index at www.companieshouse.gov.uk/info

3. What does 'the same as' mean?

When deciding whether a name is 'the same as' another name, the Registrar ignores punctuation, the company's status, 'the' at the start of the name, and words like 'company (or co)', 'and (or &) company (or co)'. A name that sounds the same as one already on the Company Names Index may be accepted if the two names are spelt differently.

For example, if the name 'Hands Limited' is already registered, then the following would be rejected:
  • Hands Public Limited Company (or PLC)
  • H and S Limited (or Ltd)
  • H and S Public Limited Company (or PLC)
  • H & S Limited (or Ltd)
  • any of the above, with the addition of 'Company (or Co)' or 'and (or &) Company (or Co)'
While a company name may be sufficiently different from a name already on the Index to allow it to be registered, this might not be enough to avoid the names being considered 'too like' each other if an objection is lodged after the second company has been incorporated. In such cases, your company could be directed to change its name - see chapter 5.


You should be aware that if you adopt a name which misleads the public into believing that your business is that of another business - for example, trading as a department store under the name 'Harrods' - then you may face a legal action for 'passing off' by the person whose business you have affected. Registration of a name by Companies House is no guarantee that you are safe from such an action.

Registering a name prevents another limited company from having an identical name, but it does not stop the name being used as a trading or business name except in the circumstances described above.


4. Which names need approval?

Names which need approval are those which include words or expressions set out in statutory regulations and names which give the impression that the company is connected with HM Government or with a local authority. Full lists of 'sensitive' words are at Appendices A, B and C, and there is more information on sensitive words in chapter 3.

Names that suggest a banking activity

Following the repeal of the Banking Act 1987, company names that include bank, banker, banking or deposit no longer need approval. However, using words that suggest a banking activity implies that the person using the name is carrying on a banking business and is therefore accepting deposits - a regulated activity under the Financial Services and Markets Act 2000. Therefore, the person would normally need to be an 'authorised person' or to have exemption under the Act.

Use of a banking name by a person who is neither authorised nor exempt under the Act could be material to whether an offence has been committed under section 24 of the Act. A person may, however, be able to establish that the way that he carries on his business means that those who deal with him would not understand him to be an authorised person.

It should not be assumed that a decision by us to register a particular banking name means that its use in certain circumstances would not contravene section 24. If you are in any doubt, you should seek independent legal advice.



5. What if my choice of name needs approval?

If you choose a company name that needs the approval of the Secretary of State for Trade and Industry before use, contact New Companies Section at Companies House, Cardiff or Edinburgh, as appropriate, and ask for information on the rules governing the use of the word you have chosen.
  • If you choose a name that includes any of the words listed in Appendix A, you will probably be asked to supply supporting information before we register the name. You should write, enclosing information in support of your application, to the Secretary of State for Trade and Industry at Companies House in Cardiff (for English and Welsh companies) or in Edinburgh (for Scottish companies).
  • If your choice of name includes any of the words listed in Appendix B, then you will need to write to the 'relevant body' to ask if they have any objection (and if so, why) to your use of the word or expression in your company name. When you write to the Secretary of State for Trade and Industry at Companies House, Cardiff or Edinburgh to ask for approval of the name, you must enclose a copy of any reply you have received from the 'relevant body'.
  • The use of some words and expressions is covered by other legislation and their incorrect use in company names might be a criminal offence. Those known to Companies House are listed at Appendix C. If you wish to include one of these words or expressions in your company name, then you should contact the relevant regulatory authority, or ask us for advice.
  • If your chosen name gives the impression that your company is connected with HM Government or with a local authority, then you will need the written approval of the Secretary of State for Trade and Industry before the name can be registered. Write to the Secretary of State for Trade and Industry at Companies House, Cardiff or Edinburgh, as appropriate, giving as much detail as you can to support your application. Such names will normally only be approved where you can show that a genuine connection exists and where the relevant government body supports the application. See chapter 3.
6. How do I register my company name?

If your chosen name is not already on the Company Names Index and is not one which needs the Secretary of State's approval, then send your incorporation documents (or special resolution if an existing company is changing its name) to:
  • New Companies Section, Cardiff for companies registered in England and Wales; or
  • The Registrar of Companies for Scotland for those companies registered in Scotland.
If your documents are correct, the company name will be registered and a certificate of incorporation issued.

More information about incorporating companies is available in our booklet, 'Company Formation'. Information about changing the name of a company is given in chapter 2 of this booklet.


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CHAPTER 2

Change of company name


1. Are there any restrictions on the new name a company can choose?

Yes. They are identical to the restrictions applying to a new company seeking registration. So, before you decide on a new name for your company, please read chapter 1. If you choose an unacceptable name, we will not register it.

If a name is registered that is too similar to another already on the index and an objection is made, then the Secretary of State may direct your company to change its name. For information on the Secretary of State's powers, see chapter 5.

2. What is a change of name?

Be careful to distinguish between a change of name and a change of status of a company. For instance, a company changing from J SMITH LIMITED to J SMITH & SON LIMITED is a change of name, but a company changing from J SMITH LIMITED to J SMITH PLC indicates a change of status from a private limited company to a public limited company. For more information on changing the status of a company, see our booklet 'Company Formation'.

3. How is the name changed?

The company must pass a special resolution in a general meeting, or all the members must sign a written resolution that the name of the company be changed to the new name. More information about resolutions is available in our booklet, 'Resolutions'. A signed copy of the resolution containing the new name should then be sent to the Registrar, together with the fee (currently £10). If all is in order, Companies House will then process the resolution and issue a Certificate of Incorporation on Change of Name. The name of the company is not changed until the new certificate is issued.

4. How long does this take?

If all the documents are correct, the change of name will normally be processed within five working days from receipt at Companies House.

Companies House also provides a premium service where we issue the change of name certificate on the same day as we receive the resolution. This service, which costs £80, can only be guaranteed where the relevant special resolution is delivered before 3pm. The service is available at any Companies House office.

Same-day applications
Posted, couriered and other sealed same-day change of name applications must be clearly marked on the envelope 'for the attention of New Companies Section' and 'same-day change of name'.


5. Can a change of name and of status be done together?

Yes. You can combine the resolution for change of name and change of status, for example, resolving to change the name from ABC Limited to XYZ PLC. However, if a PLC wishes to change its status, same-day re-registration can only occur if the necessary majority of the company members have agreed to the change. For more information, see chapter 4 of our booklet 'Company Formation'.

You will need to submit all the documentation associated with the change of status at the same time. You will also need to submit two fees: £10 for the change of name and £20 for the change of status (£30 in total), or £160 if you require the same-day premium service.

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CHAPTER 3

Sensitive words and expressions


1. What are 'sensitive words and expressions'?

These are words and expressions that, when used in a company name, may imply business pre-eminence, a particular status or a specific function. For this reason, they have been prescribed in regulations as requiring the approval of the Secretary of State. The aim is to ensure that use of the word is justified so that the public is not misled by the name. We act on behalf of the Secretary of State in dealing with applications for approval of such words and expressions.

Approval by the Secretary of State is confined to the use of certain words or expressions in the company name. Approval does not imply approval of a company's aims and objectives.


This chapter gives guidance on the conditions your company will need to fulfil if you wish to use one of the words listed in Appendix A.

2. What types of words and expressions are sensitive?

The following words imply national or international pre-eminence:
  • British - approval of this word in your company name will depend on how it is used. Normally the Secretary of State would expect the company to be British owned. You would need to show that the company is pre-eminent in its field by providing supporting evidence from an independent source such as a Government department or a trade association.

    If the word 'British' is qualified by words that do not describe an activity or product, for example by using a 'made-up' word, then evidence of pre-eminence is not necessarily essential. But you would be expected to show that your company is substantial in relation to its activity or product and that it is eminent in its own field.
  • England, English, Scotland, Scottish, Wales, Welsh, Ireland or Irish - if you wish to use these words as a prefix to your company name, the rules are similar to those for 'British'. You will usually be given approval to use any of these words as a suffix if you show that the company has its main place of business in the country concerned. If you want to use one of these words because it is a surname, you will usually be given approval if the company name includes forenames or initials.
  • European - names which include this word will not be approved if they unjustifiably imply a connection with official bodies of the European Union. If there is a genuine connection with an official body, the name may be allowed if the appropriate body supports the application.
  • Great Britain or United Kingdom - if you wish to use these expressions as a prefix, or to use 'of Great Britain' or 'of the United Kingdom' as a suffix, then the criteria are the same as for 'British'. If the words are used as a suffix to the name, they are normally allowed without difficulty. Using the initials 'GB' or 'UK' in your company name does not require approval.
  • International - if you wish to use this word as a prefix, you need to show that the major part of the company's activities is in trading overseas. If you wish to use it as a suffix, then approval will usually be given if you can show that the company operates in two or more overseas countries.
  • National - the criteria for use of this word are the same as for 'British'.
The following words imply business pre-eminence or representative or authoritative status:
  • association, federation or society - if you wish to use one of these words, your company would normally be limited by guarantee. Each member should have one vote and the constitution should contain a non-profit distribution clause. This provides that any profits should be used to further the objects of the company and not be paid to the members as dividends.

  • authority, board or council - if you want to use any of these words, you should ask us for advice. If the company is to be registered in Scotland, contact Companies House in Edinburgh.

  • institute or institution - approval for use of these words is normally given only to those organisations which are carrying out research at the highest level or to professional bodies of the highest standing. You will need to show us that there is a need for the proposed institute and that it has appropriate regulations or examination standards. You will need evidence of support from other representative and independent bodies.
The following words imply specific objects or functions:
  • assurance, assurer, insurance, insurer, re-assurance, re-assurer, re-insurance or re-insurer - if the name is needed for an underwriting company, we will normally seek further advice. However, if you want to use the name for a company that will only provide insurance services, then you should include the appropriate qualification, for example 'agents', 'consultants' or 'services', in the name.
  • benevolent, foundation or fund - names that include any of these words will normally be refused if they imply that the company has charitable status. If the company is limited by guarantee and has a non-profit distribution clause in the memorandum of association, then the name will normally be approved.
  • charter or chartered - names that include these words will be refused if they unjustifiably give the impression that the company has a Royal Charter. If the words are used to qualify