can i stop anyone registering my sole-trader name as a Ltd company before i do?

MrYorke

Hi

I am going to start up as a sole-trader very shortly. One day i'd like to be busy enough to turn it into a Ltd company but i would like to know if I can 'reserve' or even register a Ltd company name just incase someone else does so before me intentionally or not?

Cheers

prowla

You can set up a limited company for not a lot of money, so why not just go ahead and do it?
If you are going to be VAT registered, then your company will need a bank account - Abbey do a zero fees account.
If you are looking at getting a web site, then you can buy the domain easily too; getdotted.com will let you check the availability of names.

Ste_C

What do you mean by busy enough? What would be your motivation go incorporate?

MrYorke

I will only be working part time during some evenings and weekends. I want to start off small to build up the business until such time as I can afford to leave my current employer and work for myself full-time.

This will be some time so have done alot of research and taken plenty of advice so have decided to start as a sole trader.

I will not be VAT registered as i am not expecting to be busy....unless it really takes off but in the current climate i cant see this happening for a while but i am hard working and love the job i do. I also have 7 years management experience so will certainly give it my best shot.

As soon as I am busy...ie....making lots of dosh, i will look to expand, go full-time and then become a limited company and VAT registered. As a liited company, i will then be able to apply for a grant to buy bigger and better machines and to help improve whatever website i have up and running etc etc.

So, going back to my original question, can i pre-register a Ltd company name or something of the sort?

Thanks

orangeslimes

I think you could register a limited company with the name and leave it dormant.
obviously this involves expense and having to fill in lots of paperwork

ukbill69

Its a £25 fee a year to companies house for dormant companies and thats all you need to do.

[Deleted User]

ukbill69 wrote: »

Its a £25 fee a year to companies house for dormant companies and thats all you need to do.

And of course if the ltd co is operating theres more of an accouting burden than that for a sole trader.

schneckster

Hi,

Do a search for Companies Made Simple. They have 3 packages starting at around £30 + VAT where they register the company and send all the certificates and docs via email. Registration is complete within a couple of days.

After that, register for webfiling with Companies House. Annual registration online is £15 for dormant companies. Just remember the annual return filing date and make sure you do it. You only have a month window.

You'll also get a letter from HMRC about Corporation Tax. They provide a facility where you notify them that you are not currently trading. Obviously, you need to tell them when you do start trading. Corp Tax is approx 21% of profit for small companies.

That's the easy bit. Actually taking money out the company is something you really should discuss with an accountant. There are tax efficient ways that won't fall foul of the Revenue... and then there are other ways that do. Get advice.

There is nothing to stop you registering a company and leaving it dormant until you're ready. That's precisely what I've done (hope to start trading this year) and as long as you do the paperwork, there shouldn't be a problem.

Good luck,

Schneckster

coldstar

Im not sure its worth registering a Ltd co name yet. Probably more important to get domain names and start trading with your selected trading name.

If your trading as "Fred Bloggs Toastracks" for example you should register domains like fredbloggstostracks.co.uk and fredbloggstoastracks.com and set up a basic website. Also printed letterhead etc with this trading name. You can register domain names and get web space very cheaply if you look around

It is possible that some one might come along and register Fred Bloggs Toastracks Ltd but frankly its unlikely and there is nothing to stop you registering as Fred Bloggs Toastracks UK Ltd (also nothing to stop the reverse happening either, you register Fred Bloggs Toastracks Ltd and someone else regsiters Fred Bloggs Toastracks UK Ltd ). In this sort of situation you should be able to stop your competitor trading as "Fred Bloggs Toastracks" by using the "passing off" common law (google it!).

The important thing is to start trading under your selected name, once you have some history you can protect yourself. You could even register a trade mark, this might seem complicated but I did it and its very cheap if you do it yourself or more expensive if you use an agency.

Lots of companies have different ltd company names and trading names eg you could be "xyz2009 UK ltd" trading as "Fred Bloggs Toastracks" which is a form used by many businesses