What's in a name?

The key changes in the registration of a company's name and the potential pitfalls and remedies to be aware of following the implementation of the Companies Act 2006.

Company Names

It is possible to register a company name which is similar to another name already listed on the Company Registrar's index of company names. For example "A Company Limited" could already be registered as a company name, but the application for "A Company (UK) Limited" would still be accepted. However, such a name will only be accepted if it forms part of the same group as the company whose name is already on the index of company names. A company is considered to be part of the same group if it is a parent company or subsidiary of the other. 

If you wish to take advantage of registering a company name in this way, you must have written consent from the Company which is already on the index together with confirmation that the new company will be part of the same group as the company already on the register. The application for the proposed name must include a copy of a statement in which the existing company consents to the other company adopting the proposed name and confirms it will be part of the same group.

Objecting to Company Names

Whilst Companies House is now far more stringent about registering companies with the same or similar names, there may be some companies which slip through the net when they are incorporated. If this happens, it is possible to object to a company name registration made by another party; an objection should be made to the Secretary of State.

Objecting to the Secretary of State

If you wish to make an objection to the Secretary of State because a new company has been incorporated with a name that is the same as, or too similar to, your company name, it must make such an objection within 12 months of the new company's registration.

When time has expired

If the 12 month time limit for objection to the Secretary of State has expired, an application can be made to the Company Names Tribunal at any time. The cost of making an application is in the region of £1000. It will be necessary for an applicant to show that the name was chosen with the intention of seeking money from the company or preventing them from registering a name which had previously acquired goodwill. For example, Coke Cola was the first company to be forced to change its name by the Tribunal. 

Johanna Probert is an Associate within the Corporate Team at Michelmores. For more information on the issues raised in this article, please contact her at johanna.probert@michelmores.com.