Companies House new powers: What you need to know

Hi everyone,

Hope you're having a good week.

On 26 March 2024, Companies House announced a set of new powers they can use related to company names.

In essence, it allows them to challenge or change names on the registry under certain conditions.

Whilst this is a relatively old update, it's important to be aware of when it comes to your registered name.

Company names: Common queries

As an IP firm that deals with business names in the form of registered brands - we often get enquiries about registered company names.

There's an important distinction to be made. Your registered company name on Companies House, is different from your registered brands.

The latter will typically reflect your trading name (or certain products or services.)

However, your registered company name on Companies House isn't intellectual property per sé.

It's a common misconception that registering a business name with Companies House grants monopoly rights over its use.

We often encounter businesses who haven't got their trade marks registered, thinking that their registered business name is sufficient for this purpose!

Regardless, for many businesses securing the name they want here is important.

So, having this challenged or changed is something they'll want to be vigilant to.

The update

The update came into force as a result of the first set of measures under the Economic Crime and Corporate Transparency Act.

The rationale is to "clean up" the register - ultimately increasing the integrity of the register and reducing economic crime.

There are a set of existing restrictions that the update adds to. These include:

Names that are the same or too similar to an existing name

Certain restricted terms: e.g. implying connection to the UK Government or use of sensitive words or expressions

The new measure means that Companies House can refuse names under the following conditions:

Where Companies House have reason to believe:

The name is intended to facilitate fraud.
The name comprises or contains a computer code.
The name is likely to give the false impression the company is connected to a foreign government or an international organisation whose members include two or more countries or territories (or their governments).

Under certain circumstances, Companies House can also direct companies to change their names.

If the company fails to change its name within 28 days, Companies House can now determine a new name for the company. This can take the form of changing the company name to its registered company number.

You can read the full update here.

What this means for you

First and foremost, if you're looking to register any new companies, you should be aware of all the criteria above. This will make sure that the process is as seamless for you as possible.

Secondly, if you're aware of any other businesses in your space that might step over the mark here, it could be useful to have a conversation re: enforcement.

Ultimately a company name is not a brand - but it tends to be the bedrock on which brands flow. So being aware of all of the above, and registering distinct and compliant brands as trade marks is key.

If you have any issues with Companies House, it is something we can assist with. (Although it should give rise to a larger conversation about your brand presence in general!)