Why Company Formations Are Rejected (and How to Avoid It)

Company formations are rejected mainly because a director has not verified their identity or gave the wrong personal code, the name is the same as another company or uses a sensitive word, the registered office is not an appropriate address, or the details do not match. Since 18 November 2025 the identity check has become the biggest single cause: Companies House will not register a company unless every director has verified and the application includes each director’s personal code. Almost every rejection is preventable. This guide lists the seven common reasons and how to avoid each one.

The 7 Most Common Reasons, and How to Avoid Them

Reason	How to avoid it
A director has not verified their identity, or the personal code is wrong	Verify every director before applying and copy each 11-character code exactly
The name is the same as an existing company	Check the register for variations, not just your exact spelling
The name uses a sensitive word without permission	Get approval from the relevant body first, or choose another word
The registered office is not an appropriate address	Use a physical address in the right part of the UK that you are entitled to use
Names do not match identity records	Use the full name exactly as on the passport or ID used to verify
Shares, shareholders and PSCs do not add up	List everyone with more than 25% as a PSC with the right nature of control
Missing or unsuitable details	Give a registered email, SIC codes, a service address and full officer details

1. Unverified Directors and Wrong Personal Codes

Under the Economic Crime and Corporate Transparency Act 2023, every individual director must verify their identity before the company can be formed. Verification gives them an 11-character personal code, and the incorporation application must include it. Typical problems:

A co-founder agreed to be a director but never verified
A code typed with a wrong character, or one belonging to someone else
A director who failed GOV.UK One Login and did not try again through an ACSP. See verification failed

People with significant control verify at incorporation or within 14 days. See identity verification for company formation.

2. A Name That Is the Same as Another

Companies House ignores punctuation, plurals, the Ltd ending and common words such as “UK” or “Group” when comparing names. “Hands UK Ltd” is the same as “Hands Ltd”. Check variations with our company name checker and read how to choose a company name.

3. A Sensitive Word Without Permission

Words that suggest a connection with government, a public authority, or a regulated status need approval before you apply. Examples include “Accredited”, “Bank”, “Chartered”, “Royal” and “NHS”. An application with a sensitive word and no supporting approval will not go through.

4. A Registered Office That Is Not Appropriate

Since 4 March 2024 the registered office must be an “appropriate address”: a physical address in the same part of the UK as the company, where post would reach someone acting for the company and delivery can be acknowledged. A PO Box alone does not qualify, and nor does an address you have no right to use. If Companies House later finds the address is not appropriate, it can move the company to its default address. The full rules are in registered office address rules.

5. Details That Do Not Match

The director’s name on the application should match the name on the identity document they verified with: same spelling, same order, middle names included. Mismatches between a passport in one script and an English spelling are common with overseas directors. See name mismatches.

6. Shares and PSCs That Do Not Add Up

Anyone holding more than 25% of the shares or votes is a person with significant control and must be listed as one, with the correct nature of control. A 50/50 company has two PSCs. A shareholder listed with 30% and no PSC entry is a mistake Companies House can query. See shares and shareholders and PSC verification explained.

7. Missing Details

Applications also come back for things that are easy to overlook:

No registered email address, required since March 2024
No SIC code, or a code that does not describe the business
No service address for a director
A director under 16, or one who is disqualified

Use the checklist in information needed to register a company before you apply. GOV.UK sets out the requirements in set up a private limited company.

How a Formation Agent Prevents Rejections

A good formation service catches these problems before anything reaches Companies House. Look for one where a person, not just software, checks:

The name against the register and the sensitive-word list
That every director has a valid personal code, or arranges verification for those who do not
That names match identity documents
That shareholdings and PSCs are consistent
That the registered office is an appropriate address in the right part of the UK

Once the company is registered, the next steps are in what to do after registering a company.

Checked by a Person Before It Is Filed

CorpAssist is built to stop applications coming back:

A person checks the name, officers, shares and PSCs before anything is filed
Identity verification arranged for each director who needs it, through our Companies House-registered ACSP partner
Passports from 190+ countries accepted for verification, including passports without a chip
London registered office that meets the appropriate address rules, included with Privacy (£199.99)
Formation from £159.99; non-residents £249.99 all in
Full refund if an issue on our side or at Companies House stops your company being formed

Form my company — £199.99 Compare packages

Frequently Asked Questions

Why was my company registration rejected?

The most common reasons are a director who has not verified their identity or a wrong personal code, a name that is the same as an existing company or uses a sensitive word, a registered office that is not an appropriate address, and details that do not match, such as a name that differs from the director’s identity record.

Do I get my £100 back if Companies House rejects my application?

Companies House explains what is wrong so you can correct it. Whether a fee is refunded depends on how and why the application failed, so check the rejection notice. Applying through an agent that checks everything first avoids the problem.

Can a company be registered without the director’s personal code?

No. Since 18 November 2025, each director must have verified their identity, and the incorporation application must include their personal code. Without it, the company cannot be registered.

What is an appropriate registered office address?

A physical address in the part of the UK where the company is registered, where documents sent to it would be expected to come to the attention of someone acting for the company, and where delivery can be recorded by acknowledgement. A PO Box on its own is not appropriate.

How long does it take to fix a rejected application?

Usually as long as it takes to correct the problem and resubmit. A name change is quick; an unverified director can take days if they have to verify first. Online applications are normally processed within 24 hours of being resubmitted.

Can Companies House reject a company after it is registered?

Companies House can query information and, under its powers since 2024, remove or annotate information that is wrong. It can move a registered office that is not appropriate to its default address. Getting the details right at the start avoids these problems.

Ready to apply? See company formation packages.

Rules checked against GOV.UK on 30 October 2026. CorpAssist is an independent commercial service and is not Companies House or GOV.UK.