When you form a new UK registered company its a requirement under UK law to have a company name. However, lots of people do not realise that the are lots of important rules associated with choosing a company name. There are two aspects to this, firstly the name of the company can affect the company commercially and secondly the name needs to comply with a number of legal requirements. This article is concerned with the the second of these two points.
Currently most of the rules that govern the name of a company are contained in the Companies Act 2006. We will briefly review them here but the reader should bear in mind that this is a guide only and not intended to be comprehensive. We strongly recommend that if the reader has any doubt over the validity of a company name then they seek suitable professional advice from either a Chartered Accountant such as Accountants South Wales, Lawyer or Chartered Company Secretary. It may be beneficial for the reader to review the Companies Act 2006 documentation.
Offensive names are prohibited.
Names suggesting connection with government or public authority require approval from the Secretary of State.
There may be other sensitive words or phrases in the proposed company name that require prior approval from the Secretary of State.
The Secretary of State may not permit certain characters to be included in a company name.
The name of a limited company that is a public company must end with “public limited company” or “p.l.c.”. In the case of a Welsh company, its name may instead end with “cwmni cyfyngedig cyhoeddus” or “c.c.c.”. There are some exceptions to this requirement.
The name of a limited company that is a private company must end with “limited” or “ltd.”. In the case of a Welsh company, its name may instead end with “cyfyngedig” or “cyf.”. Again, there are some exceptions to this requirement
The company name must be unique, i.e. it can not be the same as another company.
A company name must not be misleading. Eg. The name must not describe an activity that a company does not carry out.
In addition to the above, there are a number of other legal issues that should be carefully considered including, but not limited to, copyright law and trade mark law. Are you forming a Company in Cardiff, Swansea or anywhere else for that matter, then it is recommended you speak to a Chartered Accountant near Swansea.
The author does not guarantee the accuracy of any information provided in this article and recommends that you do not take any action, whatsoever, based on the information provided. By the fullest extent permitted by law, the author does not accept any responsibility for any actions you may or may not take based on information contained in this article or in any links contained within it. This article contains general information and is not a substitute for specific independent professional advice.
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