WHAT ARE "SENSITIVE WORDS AND EXPRESSIONS"? Sensitive words and expressions are those which, when used in a company (or a business) name, need approval before they can be used.

Guidance is given in fairly broad terms because it is not always possible to give definitive criteria.

.... words which imply national or international pre-eminence:

*British - the criteria for use of this word in your company or business name can vary depending on the way the word is used. Normally the Secretary of State would expect the company or business to be British owned. You would need to show that the company or business is pre-eminent in its field, preferably 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, evidence of pre-eminence is not necessarily essential. You would however be expected to show that your company, or business, is substantial in relation to its activity or product and that it is eminent in its own field;

*National - the criteria for use of this word is similar to that for "British";

*Great Britain or United Kingdom - if you wish to use either of these expressions as a prefix, or if you wish to use "of Great Britain" or "of the United Kingdom" then the criteria are the same as that for "British". However, if you want to use the initials "GB" or "UK" in your company or business name you do not need the approval of the Secretary of State;

 *England, English, Scotland, Scottish, Wales, Welsh, Ireland and Irish - if you wish to use any of these words as a prefix to your company or business name the criteria is similar to that for "British". You will usually be given approval to use any of these words as a suffix provided that you can show that the company or business is trading in the country concerned. If you want to use one of these words because it is a surname you will usually be given approval provided that the name includes forenames or initials;

*International - if this word is used as a prefix to your company or business name you would need to show that the major part of its activities is in trading overseas. If you wish to use it as a suffix approval will usually be given if you can show that its main activities are exports, or that it operates in more than one country overseas. Approval is usually given to companies wishing to use this word when the company is involved in a trade that is international in character, such as travel or transport, provided that the name is not too misleading or likely to give rise to a justified complaint;

*European - names which include this word may be approved provided that they do not imply a connection with official bodies of the European Economic Community, and provided that the name is not too misleading or likely to give rise to a justified complaint.

.... words which imply government or public authority patronage or sponsorship:

*authority, board or council - if the name you have chosen implies that your company or business has government or public authority patronage or sponsorship, you will be asked to provide evidence of a genuine connection to support your application - for example a letter of support, and consent to use the word, from the relevant authority.

.... words which imply business pre-eminence or representative status:

*association, federation or society - if you wish to use one of these words, your company would normally be expected to be limited by guarantee, Each member should have one vote under the constitution, and normally any profits should be used to further the objects of the Organisation rather than be paid out to the members as dividends. If you want to use one of these words in an unincorporated business name you should seek the advice of Companies House;

*institute or institution - approval for use of this word is normally given only to those organisations who are carrying out research at the highest level or to professional bodies of the highest standing. You will need to show that the company or business does not conflict with other existing organisations and that it has appropriate regulations or examination standards. You will need evidence of support from other representative and independent bodies. The criteria is more fully explained in the questionnaire letter that you will be sent when you apply for a company name that includes one of these words.

.... words which imply specific objects or functions:

*insurance words - if the name is needed for an underwriting company or business the Department will normally seek further advice. However if you want to use the name for a company or business that will only provide insurance services you should include the appropriate qualification, for example agents, consultants or services, in the name;

*patent or patentee - a name including either of these words will only be approved if it does not contravene the Patents Act;

*Chamber of Commerce, and/or Trade and/or Industry etc - if you wish to use a name that includes one of these expressions the Department will seek the advice of the Association of British Chambers of Commerce before considering whether approval should be given;

*co-operative - many companies wanting to use this word are limited by guarantee with control in the hands of the members and with a non-profit distribution clause in the memorandum of association. Use of this word however is not restricted to such companies and a company limited by shares may also be permitted to use this word in its name in some circumstances. Whatever the category of your company, you may be asked to supply more detailed information before approval can be given. If you want to use this word in the name of an unincorporated business you should seek the advice of Companies House;

*group - if use of this word implies that there are a number of companies under one ownership, then you will need to provide evidence of association with one or more British or overseas companies. If, however, the name clearly shows that the company or business is to promote the interests of a group of individuals then the name will normally be approved;

*holding(s) - companies wishing to use this word must be a holding company within the terms of Section 736 of the Companies Act 1985;

*post office or giro-- the Department is likely to seek advice on applications that include these words;

*stock exchange - names including this expression will normally be refused unless there are special circumstances;

*register or registered - each application for use of either of these words will be treated on its merits. As a general guide, if names which include these words are linked with a professional qualification, the Department will seek advice from the appropriate body. The name as a whole must not imply a connection with HM Government or a local authority;

*Friendly Society or Industrial Provident Society names which include these words will be referred to the Registrar of Friendly Societies for advice. If you want to use one of these expressions in your company name you should first seek the advice of Companies House in Cardiff or Edinburgh as appropriate;

*Trade Union - names including this expression will normally be refused unless they conform to legislation relating to Trade Unions;

*charter or chartered - names that include these words will be refused if they falsely give the impression that the company has a Royal Charter. If either of these words are used to qualify a profession, the Department will seek the advice of the appropriate governing body before considering whether to approve the name;

*Sheffield - if you wish to use a name that includes the word "Sheffield" the Department will need to establish details of the nature of your company's business activities, unless the name clearly shows that the company, or business, is not involved in the manufacture or sale of cutlery. If there appears to be a link with the traditional Sheffield industries the Department will seek the advice of the Cutlers Company before considering whether to approve the name;

*benevolent, foundation or fund - names that include any of these words will normally be refused if they imply that the company has charitable status, unless the company is limited by guarantee and has a non-profit distribution clause in the memorandum of association. If you want to use one of these words in the name of an unincorporated business you should seek the advice of Companies House;

*chemist or chemistry - if you want to use either of these words you should seek the advice of Companies House in Cardiff or Edinburgh as appropriate;

and

*trust - the word "trust" can be used in many different senses. Each application is dealt with on its merits but the main uses of this word are as follows:

*financial and investment trust - if you wish to use these words you will need to provide a written assurance that substantial paid-up share capital or other funds will be achieved within a reasonable period after incorporation.

*family trust - such companies must be non-profit distributing and the objects must reflect the nature of the trust. Names of family trusts will usually be approved provided that the name as a whole identifies the company as such;

*educational or artistic trust - such companies should have a non-profit distribution clause in the memorandum of association and the name should reflect the nature of the trust. The promoters should be of some standing in the field;

*charitable trust - these companies need to have charitable objects and a non-profit distribution clause in the memorandum of association. You will be asked for confirmation that you have made, or will make, an application for registration as a charity with the Charity Commission. Scottish companies wishing to use this expression will need to apply to the Inland Revenue in Edinburgh as the Charity Commission has no jurisdiction in Scotland;

*pensions and staff trust - the names of such companies must include the name of the parent company and the objects of the company must include the operation of pension funds;

*enterprise trust - these companies must have a non-profit distribution clause in the memorandum of association and they must also be able to provide evidence of support from, for example, local authorities, businesses or banks;

*unit trust - if you wish to use this expression as part of your company name you should seek the advice of New Companies Section, Companies House, Cardiff.