Although using a company name search is usually
a very simple process, there are some important
points to note when engaging such facilities.
Knowledge of some of the issues that can arise
when checking a company name can prevent delays
and additional expense when going forward to
register a company.
One of the common problems faced is when the
results of a search reveal a positive result
when in fact an entity with that title has
already been incorporated. This can happen when
company name searches are used when either the
local registry or the main Companies House
facilities have shut down.
The site visitor is then essentially
interrogating out of date data and the results
may reflect this. This situation is not
dissimilar to cases where company formation
agents share lists or pre registered businesses.
For example, where a list the names of offshore
companies is distributed to several
organisations which advertise them, it is
sometimes the case that two or more people will
purchase the same company name.
Errors with Company Name Searches
Some company name searches produce errors when
certain characters are entered. Non-UK letters
and symbols are an example where false positives
can occur. This can hinder to effort of those
people abroad using a native set of characters
in successfully forming a company.
One area where all company name searches are
redundant is in the area of analysing the
possibility of future objections to a title
already incorporated because it has a strong
likeness.
Thus the name check and resultant company
formation could proceed smoothly only to find
that within a twelve month period, someone
notices a similarity and forces the latter
incorporated company to change its title.
The purpose of this piece is to high some
examples of how using a company name search can
sometimes be a less than straightforward
process. In the majority of checks which are
carried out within normal business hours, the
success rate is very high.
Being aware that potential issues can arise
should make those making use of the facilities
more diligent during the procedures so that the
likelihood of further expense and postponements
are limited.