Company
formations look set to become just slightly less stressful for many
start-up businesses, with the Business Minister Jo Swinson's announcement that
the list of 'sensitive' company names is to be reduced (http://www.london-registrars.co.uk).
The present system compels those undertaking
company formations to seek prior approval for their company name from Companies
House or a specified body, should their desired name include such words as
'board', 'authority', 'group', 'European', 'national' and/or 'international'.
However, the measures being implemented to slim
down the list will mean less hassle and a quicker process for company
formations involving the use of a registered name with a certain 'sensitive'
word or expression.
Earlier in the year, a consultation on the
Company and Business Names regime was launched, attracting 254 responses.
Following that consultation, it has now been decided that the list of more than
150 'sensitive' words and expressions will decrease to two thirds of its
present size, with effect from next year.
The words that are to be retained are those
which can be misused, and subsequently give rise to confusion as to the exact
activities of the company or the extent of its legal authority. Examples of
such words include 'bank', 'accredited', 'chamber of', 'institute', 'charity',
'government' and 'university'.
Another word that will not be leaving the list
is 'Sheffield', given the support for its retention among responses to the
consultation. National words like 'English', 'Scottish', 'Welsh', 'Cymru' and
'Northern Irish' will also be among the remaining restrictive terms applicable
to company formations.
Business
Minister Jo Swinson commented: "Making life easier for start-up businesses
will help to create a stronger economy. Rules on certain types of words
shouldn’t be an additional hurdle, so reducing the list of company names
needing approval makes sense.
"However,
we also need to make sure that businesses can’t pass themselves off as
something they’re not. We have struck a balance which reduces the regulations
on new businesses, but that also keeps historic and sensitive names rightfully
on the list."
The
move is the latest of a government (http://www.london-registrars.co.uk) that has made much of the need to reduce 'red
tape' for businesses, and the latest, slimmed-down list is sure to be welcomed
by many of those prospective business owners with an interest in company
formations.
Editor’s
Note: London Registrars (http://www.london-registrars.co.uk)
are represented by the search engine advertising and
digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk
or call: +44
(0)20 3070 1959 / +34
952 783 637.
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