Restrictions for Reserved and Sensitive Names
A reserved or sensitive word is word whose usage in a company name is subject to special restrictions imposed by Companies House. Such examples are these words are: International, British, Group, Holdings, English, Scottish, Wales, King, Royal and so on.
The principle behind the restrictions on using reserved words is largely to prevent smaller companies from portraying that they have global or national businesses or have some form of special endorsements (in the case of Royal), when in fact they are local companies with no privileged status.
Justification for using a Sensitive Word
If a person registering a company believes that they have justification for using a sensitive word, then they are required to provide evidence to Companies House when submitting their application for set-up.
Each reserved word would have its own criteria as to what constitutes evidence. Some evidence may be easier to produce than others. For example, the use of the sensitive word “Holdings” (as in the name “company formation holdings Limited”) requires that the person state at least two other companies (UK based or foreign) which the company being formed, will hold at least 51% of the shares in.
Using the Reserved Word British in a Company Name
For use of the reserved “British” on the other hand, the new company would have to show that they are engaged in an industry or profession and are regarded at the forefront of that field. References collaborating this would have to be obtained from the government or other highly regarding and established bodies. Cases where companies are formed incorporating the word British in their name are extremely rare.
