More “sensitive” words become available for company names

The government is increasing the number of sensitive words that can be used in company names.

Words such as Authority, Board, European, Group, National and International are being taken off the restricted list. It means businesses will be able to use them without getting prior permission from Companies House.

However, words that could be misused or cause confusion are to remain restricted. These include words like Bank, Accredited, Charity, Institute, Government, ‘Chamber of’ and University. 

The move follows a public consultation on company and business names.

Business Minister Jo Swinson said: “Making life easier for startup businesses will help to create a stronger economy. Rules on certain types of words shouldn’t be an additional hurdle, so reducing the list of company names needing approval makes sense.

“However, we also need to make sure that businesses can’t pass themselves off as something they’re not. We have struck a balance which reduces the regulations on new businesses, but that also keeps historic and sensitive names rightfully on the list.”

Companies House receives about 30,000 applications each month from businesses wishing to incorporate. About 4,800 of these contain prescribed words, of which approximately 70% are ultimately accepted.

The changes will come into effect next year.

Please contact Sarah Liddiard if you would like more information about the issues raised in this article or any aspect of starting up and incorporating a business.