New Rules for Company Names

New Rules for Company Names

As Companies House continues to introduce new practices as a result of the implementation of Economic Crime and Corporate Transparency Act, the latest is the new rules for company names.

Companies House have advised that they are ‘running stronger checks on company names which may give a false or misleading impression to the public. This will help us improve the accuracy and quality of the data we hold and help tackle the misuse of company names.’

The new powers will give Companies House the ability to challenge and change company names.

Companies House have advised that they can now reject an application to register a name where they have reason to believe:

• the name is intended to facilitate fraud.
• the name is comprised of, or contains a computer code.
• the name is likely to give the false impression the company is connected to a foreign government or an international organisation whose members include two or more countries or territories (or their governments).

Companies House will also be able to direct companies to change their name, and if they fail to do so within 28 days, they can now determine a new name for the company, for example, changing the company name and keeping to its registered company number.

During the 28 days they can also suppress a name from the register while a company responds to a direction to change its name.

If any company does not respond to a direction to change their company name within 28 days, an offence is committed and it’s worth noting that it is also an offence to continue using a company name which Companies House have directed to be changed.