Context
A new Companies House article is urging anyone setting up a company to choose an appropriate company name. In 2024, Companies House rejected 560 applications because the proposed name had the potential to offend or, if registered, could commit an offence. This is an increase from 479 company names it rejected in 2023 and 351 rejected names in 2022.
Key points to note and next actions
- Reasons for rejection include:
- using a sensitive word or expression (e.g., a word which is on the FCA’s sensitive names list);
- the name being the same as an existing name; and
- the name using a restricted term without authority, for example, a term implying a connection to the UK government or a devolved government.
- The list of restrictions has expanded under Companies House’s new and enhanced powers to reject an application to register a name. These new measures were introduced in March 2024 under the Economic Crime and Corporate Transparency Act. They include restrictions on names set up to facilitate fraud, names that give a false impression the company is connected to a foreign government or international organisation, or names that contain or consist of computer code.
- The article goes on to consider whether company names have the potential to offend, and whether Companies House is being reasonable in its approach in exercising its new and existing powers.