Why my company formation application got rejected

At Smarta, we’re dedicated to helping you set up and run your own business, and we try to make this as easy as possible for using our simple and quick formations service – Smarta Formations. However, sometimes applications do get rejected from Companies House – here are some reasons why this may happen:

  1. Company name

The name of your company is endlessly important; it should encompass your brand, your message and be something you are happy to work under for years to come. Nonetheless, there are some limitations to what you can label your business, which sometimes leads to applications being rejected.

Similar or repeated names: Any company name you try to register must not match, or be too similar to another business that is already trading. Our name checker will highlight to you when this instance occurs, and you should think of an alternative option.

Offensive words: Your application will definitely be rejected if your business’s name contains any rude or offensive wording.

Sensitive words: This can include words such as ‘Group’, ‘Association’ or ‘Royal’, additionally, other words with Royal connotations such as ‘King’ or ‘Queen’ etc... To register a company with these words, you’ll need to present official documentation that allows you to do so, otherwise, your application will be rejected.

  1. Registered office address

In order to form a limited company, you must have a registered address within the UK. This address doesn’t have to be your business address, but simply one that official letters and legal notices that are addressed to the company can be sent to.

Furthermore, this address also must lie within the country your business is registered in. For example, if your business was formed in England and Wales, your registered office address cannot be in Scotland or Northern Island.

Section 243 of the Companies Act

Up until 2009 any company directors and/or company secretaries’ public addresses were made publicly viewable by Companies House. Since then, they have had the choice of providing a ‘service address’ in order to keep their residential home private.

Regardless, in this case, a director’s home address is still made available to some public authorities, as well as other information. However, this can be changed; under section 243 of the 2006 Companies Act any director who feels they or their family may be at risk due to the company can become exempt by ticking a box on the IN01 form, but to do so requires a legitimate and predetermined exemption from Companies House. If you don’t have this, don’t click the box, as your application will be rejected.

  1. Bankruptcy

Following a new system introduced by Companies House in June 2014, companies cannot be formed if the registration application includes a director who is an ‘undischarged bankrupt’. The ‘undischarged’ part simply means they are currently going through the process of bankruptcy; once all debts have been paid and one has been cleared by the courts they become ‘discharged’ and so can resubmit a successful application. 

Simple mistakes

Other avoidable mistakes some people make are simply not completing all sections of the registration form – you may have left out a box that asks for your date of birth for example. On top of this, companies cannot be formed if an appointed officer is under the age of 16.

If your application is rejected the first time then there is no need to worry. You can simply resubmit the form, adjusting the appropriate information.

More information

For further information read our Smarta Guide to forming a limited company for all the information you need.

Smarta Formations

You can set up a limited company with Smarta - we offer a company registration service powered by the National Business Register.  You can search for available names then register a business name, or set up a company and/or register a trademark with us. You will receive a professional binder with all your official documents via post within 3-days.

Smarta Formations is the quickest and easiest way for you to register your limited company. All the hard work is handled for you. 

We use cookies to create the most secure and effective website possible for our customers. Full details can be found here