Sensitive words in company names can really slow down the online company formation process as they normally require additional documentation to be provided that proves you have the right to use them in the name. What is required and by whom varies depending on the word/s.
The word ‘group’ in a company name is used quite frequently and can sometimes be used miss appropriately within a company name or the full implications of using this word are not fully understood.
A ‘group’ is referred to as a family of companies linked together by their shareholdings in each other. Broadly speaking the company in control of the other is called the ‘holding or parent company’ and the company being controlled the ‘subsidiary company’.
To be classed as a ‘subsidiary’ company of another company, the ‘holding’ company must comply with one of the following:
- It holds more than 50% of the subsidiary’s voting rights
- It is a legal shareholder and on its own it controls more than 50% of the subsidiary’s voting rights under an agreement with the other shareholders; or
- It is a legal shareholder and has the right to appoint or remove a majority of the subsidiary’s board of directors
When setting up a limited company to use the word group, you will be required to provide additional information. The use of this word normally implies more than one company under the same corporate ownership. Therefore when forming your company, you must provide the names of the companies which are with or are going to be within the group. If your company cannot satisfy these conditions on registration, you must provide a written undertaking that your company will do so within 3 months.
If the word ‘group’ contained within the name however clearly shows that the company is to promote the interests of a group of individuals, then the name will normally be approved.
If you would like to register your company now and start the company formation process please follow the link below and for any further information on company formations please contact our support team on 0844 893 0808 or send them a message at formations@wisteria.co.uk and they will respond shortly.
https://www.wisteriaformations.co.uk/uk_company_registration/list_company
Wisteria Formations differentiates and benefits from being part of Wisteria Charted Accountants giving reassurance of high quality and professional company incorporation service as well as being able to take advantage of a variety of complementary services including free telephone support as well as free consultation with a tax adviser or Chartered Accountant. On top of this the company offers a range of additional services including:
- Accountancy and business advice
- Business Plans
- Tax advice
- Company Secretary
- Registered office and mail forwarding
- VAT registration / PAYE registration
