Scottish Company Formations: SENSITIVE WORDS &
EXPRESSIONS
This
information has been extracted from the Companies House website
for your convenience - For more detailed information please click
on the link above. Please also note that certain sensitive words
and expressions may incur an additional charge as special wording
is often required together with additional electronic file submissions.
Where you have reason to believe that you will be using a sensitive
word please contact an In-a-Minute Consultant for further advice.
Common sensitive words and
expressions
1. What are 'sensitive words and expressions'?
These are words and expressions that, when used in a company
name, may imply business preeminence, a particular status or a specific
function. For this reason, they have been prescribed in regulations
as requiring the approval of the Secretary of State. The aim is
to ensure that use of the word is justified so that the public is
not misled by the name. Companies House acts on behalf of the Secretary
of State in dealing with applications for approval of such words
and expressions.
Approval by the Secretary of State is confined to the use of certain
words or expressions in the company name. Approval does not imply
approval of a company's aims and objectives.
This chapter gives guidance on the conditions your company will
need to fulfill if you wish to use the under mentioned names:
2. What types of words and expressions are
sensitive? The following words imply national or international
preeminence:
British - approval of this word in your company name will depend
on how it is used. Normally the Secretary of State would expect
the company to be British owned. You would need to show that the
company is preeminent in its field by providing supporting evidence
from an independent source such as a Government department or a
trade association.
If the word 'British' is qualified by words that do not describe
an activity or product, for example by using a 'made-up' word, then
evidence of preeminence is not necessarily essential. But you would
be expected to show that your company is substantial in relation
to its activity or product and that it is eminent in its own field.
England, English, Scotland, Scottish, Wales, Welsh, Ireland or Irish
- if you wish to use these words as a prefix to your company name,
the rules are similar to those for 'British'. You will usually be
given approval to use any of these words as a suffix if you show
that the company has its main place of business in the country concerned.
If you want to use one of these words because it is a surname, you
will usually be given approval if the company name includes forenames
or initials.
European - names, which include this word, will not be approved
if they unjustifiably imply a connection with official bodies of
the European Union. If there is a genuine connection with an official
body, the name may be allowed if the appropriate body supports the
application.
Great Britain or United Kingdom - if you wish to use these expressions
as a prefix, or to use 'of Great Britain' or 'of the United Kingdom'
as a suffix, then the criteria are the same as for 'British'. If
the words are used as a suffix to the name, they are normally allowed
without difficulty. Using the initials 'GB' or 'UK' in your company
name does not require approval.
International - if you wish to use this word as a prefix, you need
to show that the major part of the company's activities is in trading
overseas. If you wish to use it as a suffix, then approval will
usually be given if you can show that the company operates in two
or more overseas countries.
National - the criteria for use of this word are the same as for
'British'.
The following words imply business preeminence 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 nonprofit 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.
Authority, board or council - if you want to use any of these words,
you should ask us for advice. 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 organization 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 criteria are fully explained in the questionnaire
you will receive when you apply for a company name that includes
one of these words.
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