The Top 5 Reasons Companies House Rejects Applications
When you’re ready to set up your company and start trading, the first thing on your to-do list is to register through Companies House. But in some circumstances, they will reject your application. Throughout this post, we’ll look at the top 5 reasons why your application could be rejected and give you tips on how to avoid it from happening.
Reason 1: Missing Persons With Significant Control
When you’re registering your company, you need to declare any shareholders who have over 25% holdings of shares. These are known as Persons With Significant Control (PSCs).
If you attempt to register a company without any PSCs, or if there are any missing PSCs, your application will be rejected.
Reason 2: Similar name to other companies
If you attempt to use a company name that’s too similar to another one, it will lead to your application being rejected by Companies House. For example, if you’re trying to register “Blue Hedgehog Catering” while “Blue Hedgehog Caterers” already exists, your application will be rejected.
To avoid this, use the Company Name Check tool to see whether your company name is available or if there are already other companies with similar names.
Reason 3: Registered address is in the wrong region
When you’re registering a company, you need to declare whether you are registering in England and Wales, or in Scotland. If you’re registering in England and Wales, you need to make sure that your registered address is in either England or Wales, it cannot be in Scotland.
If your registered address is in the incorrect region, your application will be rejected, so make sure you are registering in the appropriate region.
Reason 4: Registered office is a PO Box
A company’s registered office must be a place where official documents can be sent to and stored. Your application will be rejected if you attempt to use a PO Box as your registered office.
Reason 5: A sensitive word has been used in the company name
While you can’t use offensive words in your company name, you also can’t use sensitive words unless you have supporting documentation. For the full list of the 134 sensitive words/phrases, please check out the gov.uk website. However, as an example, you cannot use the word “Chartered” without providing evidence from your professional body that you are authorised to use it.
Companies House will reject the application if you attempt to use one of the sensitive words/phrases without supporting documentation.
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