When incorporating your company you're not allowed to call it whatever you want. Why is this the case? This article will explain what's meant by sensitive words
Sensitive words are described as certain words or phrases that have the potential to mislead, confuse or offend the public suggesting that the business has a specific function, affiliation, status, or business pre-eminence.
How many sensitive words are there?
There are over 130 sensitive words for companies to be aware of if they are incorporating in the UK with Companies House. If you wish to use any one of these words in your
company name when incorporating it, you will need to get in contact with the relevant authority that can approve your company’s use of the requested word. You can find a list of all sensitive words and the appropriate council/authority that can approve the use of the words through this link:
Sensitive words and Expressions.
What happens if you use a sensitive word without permission from the council/authority?
The Companies Act 2006 polices and enforces the regulation around sensitive words. If your company is found to have a name suggesting a connection with the government or public authority then it is deemed to have committed this offence. If this is the case then every officer of that body is deemed to have committed the offence. An individual that is found guilty of committing this offence under this section is liable to be convicted and to pay a fine that does not exceed Level 3 (A maximum fine of £1,000).
How would you go about using a sensitive word in your company’s registered name?
If you want to include one of these sensitive words in your proposed registered name for your newly incorporated company you must follow the steps outlined on the
GOV.UK website. Each sensitive word will have its own procedure that you must follow to be authorised to use the sensitive word of your choosing.
Here are some examples of how you would enquire for specific sensitive words:
- Charitable/Charity/Charities - to use this word in your proposed name, please provide a letter or email of non-objection from the relevant charity regulator - registrationapplications@charitycommission.gov.uk (England & Wales)
- Chartered Accountant - to use this expression in your proposed name, please provide a letter or email of authorisation from your professional body - contactus@icaew.com (England and Wales)
- Dental – to use this word in your proposed registered name, please provide a letter or email of non-objection from the General Dental Council - businessnames@gdc-uk.org
- Insurance/Insurer – to use this word in your registered name, please provide a letter or email of non-objection from the Financial Conduct Authority - SensitiveBusinessN@fca.org.uk
- Sheffield - to use this word in your proposed name, please provide a letter or email of non-objection from the Company of Cutlers - franksco@franksco.com
Other words you are not allowed to use when naming your company
You should also be aware that there are other words that are not classified as sensitive words but you are not allowed to use in your company names. These words are deemed to be 'restricted' and/or 'same as' words.
Words that are deemed 'restricted' are any expletives and derogatory terminology which is offensive and vulgar. The reasoning behind these words being 'restricted' is self explanatory, a company's name is supposed to entice people to become a customer not to offend them.
'Same as' words are slightly harder to explain but easy to understand. A word is seen as being the same as if you take an already existing company name and simply putting another word behind it. For example taking the name Burberry and adding the word 'Company' after it. Similarly if you put the word 'Holdings' after the taken name or 'Imports'. Similarly to not being allowed to apply these words after the name there are certain words that you cannot put before a taken name, such as '@', 'at' and 'The' as just a few examples of words that you cannot put in front of a already taken name.
Need more help?
Hopefully this article has answered any questions you may have had about sensitive words. If you are looking for more guidance on managing your business and finances, you can visit our Knowledge Base and you can use Easy Digital Company to incorporate your business today.
This article is information only and has been prepared for general guidance on matters of interest only, and does not constitute legal, accounting, tax, investment or other professional advice or services. You should not act upon the information contained in this article without obtaining specific professional or legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this article, and, to the extent permitted by law, Comdal Limited, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
