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What Is A Limited Company?
A UK limited liability company is a legal entity governed by the Companies Acts, passed by Parliament. The responsibility for ensuring that companies keep to the law is through the registrar of Companies at Companies House. A company is a distinct and separate entity from its owners and the people who operate it. It has its own status for taxation, financial and general legal obligations.
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Company Name Check
Limited Company name check is available on Companies House website:http://wck2.companieshouse.gov.uk All information about the availability of company names is supplied by Companies House. Purchasers should make their own enquiries as to the commercial consequences and suitability of a proposed name.
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Choosing a name
Choosing a company name
1.) You should make sure that the name you want will not conflict with another existing business with a similar name, whatever their size. Please note that if your company is set up with a name that is very close to an existing name and the existing party objects to Companies House within 12 months of your company being registered, you may be forced to change your name. There is no right of appeal if you are directed to change your company name. If your business name is deemed by another party to be damaging to their business, whatever type of company or partnership etc they may be, they may consider that you are ‘passing off’ and take legal action against you.
2.) If the name that you choose contains a ‘sensitive word’, this may delay or prevent the name from being registered. By submitting supporting data, it is possible that Companies House will agree to the name, even if it contains a ‘sensitive word’ or phrase.
3.) In order to avoid delays it is advisable to check the chosen name against the Companies House database. It is advised that you should not use the intended name until the Incorporation Certificate has been received. Indicated availability of a name is not a guarantee that this will be accepted.
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Sensitive words
Sensitive words for UK company formations
Some words and phrases are deemed by Companies House, to be ‘sensitive’. As a result, they may reject the name of a company if it contains one of these words or phrases. In some cases these words or phrases will be accepted, if the company registration has supporting data attached. For example if your chosen company name includes the words ‘group’, ‘holdings’, or ‘international’ then you will need to attach supporting data to your application. Templates for this type of document can be found on our ‘template’ link.
Some words that are deemed to be obscene, whilst not appearing on a list of ‘sensitive words’ will be rejected by Companies House as unsuitable. For many other types of ‘sensitive words’, it is advised that you contact the relevant body. For example to use the word ‘dental’ or ‘dental practitioner’, The General Dental Council would need to be contacted.
Please click here to view a list of sensitive words
Template letters for names including ‘group’, ‘holdings’, or ‘international’
Download the appropriate template letter, modify it to suit your company details and print it out
- Justification for the use of the word ‘group’
- Justification for the use of the word ‘holding’
- Justification for the use of the word ‘international’
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Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) company formations
Currently it is not possible to form LLP companies electronically. This type of formation can only be done by paper submission.
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Ltd by guarantee
Limited by guarantee company formations
This is used for ‘not for profit’ companies such as registered charities or running a communal event. There are different formats of Memorandum and Articles of Association, which we can supply.
Many charities are set up as limited companies under the format of ‘a company limited by guarantee without share capital’, with a special Memorandum and Articles of Association, which is known informally as ‘a charity company’. This type of company can be set up electronically.
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Community Interest
Community interest company (CIC) formations
A CIC operates between being a regular commercial trading company and a charitable company.
CIC’s were created to involve social entrepreneurs and encourage the involvement of dynamic leaders who can be recruited at competitive salaries, and socially aware investors who can receive a return on their investment, within the current investment regulations.
A key feature is the ‘asset lock’ whereby the assets of the CIC can only be applied directly for the objects of the Community Interest Company or similar enterprise upon cessation of the company's business It will not be automatically treated as a charity and it will ordinarily pay tax like any other company, although certain tax breaks for investors may be available. This type of company is not available as an electronic incorporation and must be submitted by paper.
There is a regulator for Community Interest Companies and upon the approval of the regulator an application for company formation can proceed to Companies House.
It will be possible to convert existing companies into Community Interest Companies. It is therefore essential that anybody looking into forming such a Community Interest Company take the appropriate professional advice.
