Sensitive Words in Company Names
The following words imply business pre-eminence or representative
or authoritative status-
association, federation or society - if you wish
to use one of these words, your company would normally
be limited
by guarantee. Each member should have one vote and
the constitution should contain a non-profit distribution
clause. This provides that any profits should be used
to further the objects of the company and not be paid
to the members as dividends. If you form your company
using SFS our M&A include the required information
and clauses so that your name will be accepted.
authority, board or council - if you want to
use any of these words, you should seek further guidance
from Companies House. If the company is to be registered
in Scotland, contact Companies House in Edinburgh.
institute or institution - approval for use of
these words is normally given only to those organisations
which are carrying out research at the highest level or
to professional bodies of the highest standing. You will
need to show us that there is a need for the proposed
institute and that it has appropriate regulations or examination
standards. You will need evidence of support from other
representative and independent bodies.
The following words imply specific objects or functions-
assurance, assurer, insurance, insurer, re-assurance,
re-assurer, re-insurance or re-insurer - if the name
is needed for an underwriting company, we will normally
seek further advice. However, if you want to use the name
for a company that will only provide insurance services,
then you should include the appropriate qualification,
for example 'agents', 'consultants' or 'services', in
the name.
benevolent, foundation or fund - names that include
any of these words will be refused if they unjustifiably
give the impression that the company has charitable status.
If the company is limited
by guarantee and has a non-profit distribution clause
in the memorandum of association, then the name will normally
be approved.
charter or chartered - names that include these
words will be refused if they unjustifiably give the impression
that the company has a Royal Charter. If the words are
used to qualify a profession, we will seek the advice
of the appropriate governing body before considering whether
to give approval.
charity - approval for a name including this
word normally depends on the company being registered
with the Charity Commission. A company's objects should
be charitable and the memorandum should contain a non-profit
distribution clause.
chemist or chemistry - if you want to use these
words, you should ask for advice from Companies House
in Cardiff. If the company is to be registered in Scotland,
contact Companies House in Edinburgh.
co-operative - if you wish to use this word,
your company's Memorandum and Articles of Association
should follow the rules generally associated with co-operatives
in the UK. If you need further advice you should contact
Companies House in Cardiff. If the company is to be registered
in Scotland, contact Companies House in Edinburgh.
Friendly Society or Industrial and Provident Society
- we will refer names which include these expressions
to the Registrar of Friendly Societies for advice. If
you want to use them in your company name, you should
first ask Companies House in Cardiff. If the company is
to be registered in Scotland, contact Companies House
in Edinburgh.
group - if use of this word implies several companies
under one corporate ownership, then you will need to provide
evidence of a parent and/or subsidiary association with
two or more other British or overseas companies. If the
name clearly shows that the company is to promote the
interests of a group of individuals, then the name will
normally be approved. THis will need to be evident from
the M&A of the company.
holding(s) - a company wishing to use this word
must be a holding company as defined under section 736
of the Companies Act 1985.
patent or patentee - a name including either
word will only be approved if it does not contravene the
Copyright, Designs and Patent Act 1988.
post office - we are likely to seek advice on
applications that include these words.
register or registered - we treat every application
for use of these words on its merits. Generally, we will
seek advice from the appropriate governing body if names
that include these words are linked with a professional
qualification. The name will not be registered if it unjustifiably
implies a connection with HM Government or a local authority.
If such a connection actually exists, the name may be
allowed if the appropriate body supports the application.
Sheffield - if you wish to use a name that includes
the word 'Sheffield', we will need to establish details
of the company's location and its business activities.
We will also consult the Company of Cutlers in Hallamshire.
stock exchange - names including this expression
will normally be refused unless there are special circumstances.
trade union - names including this expression
will normally be refused unless they conform to legislation
relating to trade unions.
trust - the word 'trust' can be used in many different
senses. Each application is dealt with on its merits but
the main uses of this word are as follows:
charitable trust - these companies need to have
charitable objects and a non-profit distribution clause
in the memorandum of association. You will be asked for
confirmation that you have made, or will make, an application
for registration as a charity with the Charity Commission.
Scottish companies wishing to use the expression 'charitable
trust' will need to apply to the Inland Revenue in Edinburgh
as the Charity Commission has no jurisdiction in Scotland.
educational trust or artistic trust - such companies
should have a non-profit distribution clause in the memorandum
of association and the name should reflect the nature
of the trust. The promoters should be of high standing
in the field.
enterprise trust - these companies must have
a non-profit distribution clause in the memorandum of
association and they must be able to provide evidence
of support from, for example, local authorities, businesses
or banks.
family trust - such companies must be non-profit
distributing and the objects must reflect the nature of
the trust. Names of family trusts will usually be approved
if the name as a whole identifies the company as such.
financial trust or investment trust - if you
wish to use these expressions, you will need to provide
a written assurance that substantial paid-up share capital
or other funds will be achieved within a reasonable period
after incorporation.
pensions or staff trust - the names of such companies
must include the name of the parent company, and the objects
of the company must include the operation of pension funds.
unit trust - if you wish to use this as part
of your company name, you should seek the advice of Companies
House in Cardiff. If the company is to be registered in
Scotland, contact Companies House in Edinburgh.
For further information or advice on any company names
do not hesitate to contact the team at SFS.
April 2006
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