Updated on 18/08/2014
When choosing the name for your Limited Company it’s important to check if your chosen name includes any “restricted words” and if it does, can you meet the criteria set out by Companies House that allows you to use it?
One of the most commonly used restricted words is “group”. According to Companies House:
The use of this word normally implies more than one company under the same corporate ownership. If the company cannot satisfy these conditions on registration, it must provide a written undertaking that it will do so within 3 months.
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.
Companies House mention being able to “show” that the above will occur. This simply means drawing up a document outlining this. For example:
Dear Companies House,
We wish to incorporate a new company in the above name and this letter is to justify the use of the word ‘GROUP’.
The company will hold shares in the following companies and these shares will be taken up within three months of incorporation.
The new company will have a parent/subsidiary relationship with companies named below:
Signed – Company Director
If you are forming the company through Companies Made Simple our system recognises the restricted word and prompts you to fill out the template. Once completed upload this document (as a pdf) to the supporting documents section of your company admin portal and then submit the application.
If you can not meet the criteria you will need to pick an alternative name without the restricted word.
A full list of the restricted words can be found in Appendix A, B & C here: http://www.companieshouse.gov.uk/about/gbhtml/gp1.shtml#ap