Changes to Company Name Regulations - Sensitive Names Relaxed

Changes to Name Regulations – Companies House Relax Sensitive Names

When selecting a name for a new company or changing the name of an existing company there are a number of factors you must consider. One major factor is if the name contains any sensitive word or phrases. There is a list of sensitive words or expressions that are protected from general use. The governments drive to ‘cut red tape’ and reduce the impact of regulation on business will see the list of ‘sensitive words’ reduced by around a third.

Certain words and expressions are protected when used within a company name. Examples of this include Association, Dentist, Nurse, Bank, and British. Whilst there is a good argument to protect some words like Charity and Institute, other words should be allowed to be used more freely by companies.

In October 2014 Business Minister Jo Swinson announced that the regulations protecting company names are to be relaxed. Many popular words that were previously deemed to be ‘sensitive’ are now being removed from the list.

There are currently more than 150 words or expressions that are classed as ‘sensitive’. This means that business owners need to provide supporting evidence or seek approval to include sensitive words within a company name. Some of the most common sensitive words or phrases are:

Architect
Solicitor
Vet

Bank
Nurse
University

Jo Swinson said that “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”. This is likely to be welcomed by some new businesses that want greater flexibility with company names.

However, it may be argued that reducing the number of sensitive words that are protected in company names will have a limited impact on creating a stronger economy. Many businesses operate under trading styles that are different to their actual registered name. Businesses are not successful because their preferred company name is easily registered and the administration involved registering a protected company name can be easily completed in some circumstances.

Small Firms Services welcome the reduction in the number of sensitive words. These changes should make forming a company easier for start-ups as they will encounter fewer problems choosing an available name. There are many occasions when the list of protected words has caused accountants and company directors delays with the registration process.

If you need any assistance registering a company with a sensitive word included in the company name please contact us for friendly advice. We can assist with the registration of many sensitive company names.