| When carrying out a company formation in order to | | | | word to be used. |
| start a new business, an important part of the | | | | "Too Similar" or "Same As" |
| process is choosing a suitable company name. There | | | | There are other situations where use of a word or |
| are many considerations to bear in mind when naming | | | | particular company name might be refused or |
| a new company, the most important of which, most | | | | prohibited. The Companies Act 2006 makes it clear |
| people are unaware of. This is the law surrounding | | | | that a new company may not be registered with a |
| prescribed and prohibited names - more commonly | | | | name which is "too similar" or the "same as" a name |
| referred to as "sensitive words". Under the | | | | which is already on the company register. This rule is |
| Companies Act 2006, the use of certain words is | | | | in place to prevent dishonest businesses from taking |
| restricted in order to prevent abuse and protect the | | | | advantage of the goodwill of other, well established |
| public from being mislead. | | | | companies by misleading the market with a similar |
| "Sensitive Words" | | | | name. Clearly names which are identical to those |
| Certain words have a necessary association with | | | | already on the register will be refused registration. |
| important bodies. For example the words "board", | | | | Inappropriate Names |
| "commission" and "foundation" imply a particular | | | | Offensive, rude or derogatory company names will |
| authority or status. The word "international" might be | | | | be refused registration. The registrar is keen to keep |
| used to make a company seem larger than it is. | | | | such names out of the market place where they |
| "Regulator" implies that the company is a official | | | | may cause offence to members of the general public. |
| organisation. There are many more words which can | | | | Similarly, names which may be deemed to be |
| be found on the Companies House list of sensitive | | | | misleading will also be refused entry on the register. |
| words in various appendices. The law has been put in | | | | Sensitive Word Specialist |
| place to ensure that these kinds of words are not | | | | If you unsure whether your company name will be |
| used to imply an association where non-exists. Some | | | | accepted during the registration process or if you |
| of the words may well be used by a company in | | | | intend to use a sensitive word as part of your |
| carrying out a company formation. In order to do | | | | company name, it's a good idea to use an |
| this, it is often the case that a company is required | | | | experienced sensitive word specialist to help you with |
| to fulfil certain criteria beforehand. For example | | | | your company formation. They will be able to guide |
| gaining permission from the secretary of state or | | | | you through the registration process, giving |
| making certain assurances that relevant actions will | | | | appropriate guidance and more on the best way to |
| be carried out. What is required depends on the | | | | correctly register your ideal company name. |