3 Reasons Why Company Formation Applications Get Rejected

Most limited company formation applications go through without any issues. But Companies House does reject applications that don't meet their requirements, and the reasons tend to fall into a small number of predictable categories.

Knowing what causes rejections is the easiest way to avoid them. Here's what to watch out for.

Key Takeaways

• Company name issues are the most common reason for rejection. Names that are identical or too similar to existing companies, contain restricted words without supporting documentation, or include offensive language will be rejected.
• Your registered office address must be a physical UK address in the same jurisdiction your company is being registered in. A Scottish address cannot be used for an England and Wales company and vice versa.
• The S243 exemption box should only be ticked if you have written approval from Companies House. Ticking it without approval will result in rejection.
• If your application is rejected when forming through Companies MadeSimple, you can resubmit at no extra charge.
• Checking your company name availability before submitting, and reading the registered office requirements carefully, will resolve most rejection risks before they happen.

Reason 1: Problems With Your Company Name

Company name issues are the most common cause of rejection. Companies House applies a specific set of rules to what can and cannot be registered, and applications that fall outside those rules are rejected automatically.

The Name Is the Same as or Too Similar to an Existing Company

Your company name must be unique on the Companies House register. If the name you've chosen is identical to a registered company, your application will be rejected. Names that are considered too similar to an existing name can also be rejected, even if they're not an exact match.

Use our company name checker to confirm your name is available before you start your application. It's a quick step that avoids the most common rejection reason entirely.

The Name Contains a Sensitive Word Without Supporting Documentation

Certain words are classified as sensitive by Companies House and require additional approval or supporting documentation before they can be used. Examples include words like "Group", "International", "Association", "Royal", "Bank", and "Trust", though the full list is considerably longer.

If your chosen name contains a sensitive word and you haven't included the relevant supporting documentation, your application will be rejected. The full list of sensitive words and the criteria for using them is published on GOV.UK.

The Name Implies a Connection to His Majesty's Government or Local Authorities

Your company name cannot imply any connection with His Majesty's Government, government departments, or local authorities unless you have the relevant approval. Names that suggest official or governmental status will be rejected.

The Name Contains Offensive Language

Companies House will not register a company name that includes rude or offensive words in any form. There's no defined list here, but if the name could reasonably be considered offensive, it won't pass.

Reason 2: Problems With the Registered Office Address

Every UK limited company must have a registered office address, and it has to meet specific requirements. Getting this wrong is a straightforward reason for rejection that's easy to avoid.

The Address Must Be in the UK

The registered office must be a physical address in the UK. It can be a business address, a home address, an accountant's address, or a registered office address service. What it cannot be is a PO box or an address outside the UK.

The Address Must Match the Company's Jurisdiction

The registered office address must be in the same UK country as the jurisdiction your company is being registered in. If you're registering in England and Wales, the address must be in England or Wales. If you're registering a Scottish company, it must be a Scottish address.

This is a more common issue than it sounds, particularly for people who have a business address in one part of the UK but want to register in another. Once your company is registered in a jurisdiction, you cannot move the registered office to a different country. A company registered in England and Wales cannot later move its registered office to Scotland.

Reason 3: Incorrectly Ticking the S243 Exemption Box

The S243 exemption is a provision under the Companies Act 2006 that allows directors to keep their residential address from being publicly disclosed. It exists to protect the safety of directors and those they live with, in cases where there is a genuine risk of harm.

The exemption is not automatic. You have to apply for it separately and receive written approval from Companies House before you can use it. The S243 box appears in the director's section of the formation application, near the residential address field.

If you tick this box without having prior written approval from Companies House, your application will be rejected. Do not tick it unless you have that approval in place.

What Happens If Your Application Is Rejected?

A rejection doesn't mean you can't form your company. It means the application needs to be corrected and resubmitted.

Companies House will let you know why the application was rejected. Once you've addressed the issue, whether that's choosing a different name, correcting the address, or removing an incorrectly ticked box, you can resubmit.

If you're forming your company through Companies MadeSimple and your application is rejected, you can resubmit at no extra charge.

FAQs

What is the most common reason a company formation application gets rejected?

Company name issues are the most frequent cause. This includes names that are identical or too similar to an existing company, names containing sensitive words without the required supporting documentation, and names that imply a connection to government or contain offensive language.

Can I use a PO box as my registered office address?

No. A PO box is not acceptable as a registered office address. It must be a physical address in the UK where official correspondence can be delivered and acknowledged.

What are sensitive words in a company name?

Sensitive words are terms that Companies House requires additional approval or supporting documentation to use. Examples include "Group", "International", "Royal", "Bank", "Trust", and "Association". The full list is available on GOV.UK. If your name includes one of these words and you don't provide the required documentation, your application will be rejected.

What is the S243 exemption and when should I use it?

The S243 exemption allows a director's residential address to be withheld from the public register on safety grounds. It must be applied for separately and approved by Companies House in writing before the formation application is submitted. The box should only be ticked if you have that written approval. Ticking it without approval will cause your application to be rejected.

Can I resubmit a rejected application?

Yes. A rejection is not final. Once you've identified and corrected the issue, you can resubmit. If you're forming through Companies MadeSimple, resubmission after a rejection is included at no extra charge.

What happens if my chosen company name is too similar to an existing one?

Companies House will reject the application. You'll need to choose a sufficiently different name and resubmit. Use a name checker before you apply to avoid this. Checking availability takes a few seconds and removes one of the most common rejection risks entirely.

Can I register a company with an address in a different UK country to the one I'm trading from?

Yes, as long as the address is in the same jurisdiction you're registering in. Where you trade from and where your company is registered are two different things. A Scottish company, for example, can trade anywhere in the UK, but its registered office must remain in Scotland.

This article is for general information only. Companies House rules around company names, registered office requirements, and exemptions can change. Always check current guidance on GOV.UK before submitting your application.