Why are certain words not permitted in the name of the offshore company?

As in any country, the usage of some words in Business Company names is restricted or prohibited. The first group of those words are related to specifically licensed activities – like banking, insurance, re-insurance, trust, fund management. In fact, You CAN use these words, but only if You go through a prior licensing procedure aimed at actually carrying out the particular activity. For instance, to be allowed the usage of "bank" in Your company name, You would have to apply for the banking license with the BVI Financial Services Commission.

The other group of restricted words are those, which would incorrectly imply some official connection or patronage. Thus You are not allowed to use words like "Government", "Imperial", "Chamber of Commerce", "Municipal" and quite certainly You can not use "Royal", unless You have close personal relationships with the British Royal family.

The third group of restricted words would be very open-ended, and much at the discretion of the BVI Registrar of Companies. Any rude words or expressions would surely be refused. Names, that appear to be copying or too closely resembling any existing business names, will be refused.

Generally, all those restrictions are simply to prevent the misleading of general public.