A reserved word or a sensitive word is one whose usage in a company name is subject to certain restrictions laid by Companies House.
As per Section 55(1) act of the Companies House, certain words and their usage are classed as sensitive and a prior approval of the Secretary of the State is required before using any of those in your company name.
While Companies House gives you significant freedom in deciding what to call your limited company however there are certain points which you must be aware about certain rules and restrictions laid down by the Companies House.
There are certain rules and regulations laid down by the Companies House which you need to abide by before deciding name of your company and
As per the Companies House, sensitive words are classified under three following categories:
The main intention behind listing certain names under sensitive name section is to stop the company name from becoming misleading.
For example, if you wish to use the word “international” in your proposed name of the company for trading purpose, you need to acquire relevant permission from the concerned body which can provide assurance that within first five years of trading, you can trade within the boundaries of two other countries and thus living up to its name.
Before you zero down on a name or options for the same, you must check the Companies House Index for any existing name to avoid any conflicts later.
A name which is “same as” another name on the index of the Companies House if it is similar to an already existing name or if it is considered to be same as the existing one because the only difference between the old and the new one is minor which is not considered by the law.
However, while you compare the names on the Companies House Index, you must disregard the following:
However, when two companies fall under the same group and have names that differ only by certain words and expressions such as “company”, “UK”, “United Kingdom”, “org.uk”, “international” etc, you need to take consent from the already existing company and the consent letter need to be submitted along with your application to the Companies House.
For Example:
If Food Limited is already registered with the Companies House and you wish to choose any of the below mentioned names for your own company, your application for the same will be rejected:
Any questions? Schedule a call with one of our experts.
Sumit Agarwal Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.
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