Choosing a company’s name is an incredibly important aspect of the company formation process as this name is the label that will represent your business and the services that you offer. Despite the importance of the company naming procedure, many entrepreneurs are guilty of failing to take more time to focus on finding the appropriate name.
Indeed, there are distinct differences when comparing a very simplistic and regular name to a well-thought-out and relevant name. In most instances, the well-thought-out name could be pivotal to propelling your company towards being a powerful entity. This exclusive name is what differentiates you from your competition, making your brand and services unique and distinguishable.
Thousands of companies are formed in the UK each year; however some of the names are rejected by the Companies House upon registration requests. But why do these budding entrepreneurs get turned away? This blog will focus on delving into some of the reasons behind why some company names are disallowed.
It is common sense that the Companies House will disallow any use of rude or inappropriate language in a company name. There are other words that are considered sensitive including ‘Group, Authority and Association’ that could be disallowed. A proposal has been made to reduce the list of these sensitive words. Words that also imply that the company has association with her Majesty’s government are rejected unless the company has proof of the right to do so.
Once a company name has been registered with the Companies House, another business cannot register the same or a similar name as this would be regarded as the same name. It is important to invest time into thinking of a relevant and suitable name, then registering it with the Companies House to avoid any other company imitating your branding.
Other reasons for company name rejection including reasons like the length of the company’s name. There have been instances when the Companies House has rejected names, as they were too short or too long. Furthermore, the name needs to be in the correct form. In the UK, companies are allowed to use LTD (limited) or PLC (public or private limited company).
As a company that deals with many aspects of company formation such as limited registration, we at Formations Direct urge business people to invest a significant amount of time into choosing the most appropriate name. To this end, we also offer a service to help you with choosing a company name, to see whether your name is available and appropriate. So, contact us on 0800 085 45 05 for more information on our services that will make the company formation process that much easier for you.