Sole Trader - does company name have to be unique?

hazysunshine

paulwf wrote: »

And the other side of the coin is you should consider registering your chosen name as a dormant limited company - very cheap and you remain a sole trader - to make it harder for anyone to steal your name in the future. You might also want to register your own trademark though this is more costly.

So, not only is a unique name good so you don't tread on the toes of others but it also means you can protect yourself against it happening to you in the future.

Hello,

What's the benefit of registering as a ltd company if I want to be a sole trader? Is this 'future-proofing' my brand so that if the business grows I can then change from a sole trader to a Limited Company?

Thanks

hazysunshine

Savvy_Sue wrote: »

It only has to be 'available' if you want to be a ltd company. Obviously if you think you might go that way later, then it might pay to consider your name carefully now.

But if you're a sole trader, you can use whatever name you like, as long as you're transparent and not 'passing off'. You might find problems if your name was William Harold Smith and you tried to trade as WH Smith, for example, and if you're using your own name then you need to make it clear that you are 'Your Name trading as Hazy Sunshine'.

Hi Savvy_Sue,

As a Sole Trader do I have to actually register as a company?

Thanks

Horace

hazysunshine wrote: »

Hi Savvy_Sue,

As a Sole Trader do I have to actually register as a company?

Thanks

To set up as a sole trader you contact the HMRC and say that you are self employed.

You don't have to set up as a limited company.

I started out as a sole trader and have a business, however, I had a brilliant idea one day and ran it past my accountant so to protect the name she recommended that I set up as a Ltd Company. Now I am still a sole trader plus I have another business which is a Ltd Company.

hazysunshine

Horace wrote: »

To set up as a sole trader you contact the HMRC and say that you are self employed.

You don't have to set up as a limited company.

I started out as a sole trader and have a business, however, I had a brilliant idea one day and ran it past my accountant so to protect the name she recommended that I set up as a Ltd Company. Now I am still a sole trader plus I have another business which is a Ltd Company.

Hi Horace,

Thanks for the info. I've read on http://www.startups.co.uk/registering-as-a-sole-trader_2.html that "Your business name can not be the same or too similar to that of another business, trademark or company. " But I also read elsewhere that you can have the same business name so long as you're not in the same area and doing the same business?

So, for example, could I trade as 'My name trading as First Class Builders' if there is another company registered (at a site like http://www.companyregistrations.co.uk) under the same name, doing the same business, but located miles away?

Horace

hazysunshine wrote: »

Hi Horace,

Thanks for the info. I've read on http://www.startups.co.uk/registering-as-a-sole-trader_2.html that "Your business name can not be the same or too similar to that of another business, trademark or company. " But I also read elsewhere that you can have the same business name so long as you're not in the same area and doing the same business?

So, for example, could I trade as 'My name trading as First Class Builders' if there is another company registered (at a site like http://www.companyregistrations.co.uk) under the same name, doing the same business, but located miles away?

If there is a company registered as First Class Builders which is doing the same business as you but in a different location then I would say that you would not be able to use the same name as them because they could consider you as passing off which is illegal and they can come after you and force you to change.

Have a look on the Companies House website to see what is registered and what isnt.

I am also thinking that whilst you might be 'Bert Smith' trading as First Class Builders - you might grow and become a ltd company then it will be even more awkward if there is already a company with the same name doing the same thing albeit a few miles away.

Mistral001

hazysunshine wrote: »

Hi Horace,

Thanks for the info. I've read on http://www.startups.co.uk/registering-as-a-sole-trader_2.html that "Your business name can not be the same or too similar to that of another business, trademark or company. " But I also read elsewhere that you can have the same business name so long as you're not in the same area and doing the same business?

So, for example, could I trade as 'My name trading as First Class Builders' if there is another company registered (at a site like http://www.companyregistrations.co.uk) under the same name, doing the same business, but located miles away?

OK you might not be thiking of using this exact name, but if you are using something like "first class" then it could come back to bite you in the future. Not perhaps legally, but you might get some sarcastic comments if you do a job which is good but perhaps does not match to some people's idea of first class.

If I remember correctly, in America you cannot register a Ltd Company using such descriptions for legal reasons and that is why you get names of firms like "Kwik Dry Cleaners" etc. Maybe someone could confirm this. It actually might apply to Registered Ltd Companies here as well.

am

There are many threads on here recommending setting up dormant accounts to register the name with companies house. It is fully legit, both legally and also ethically i.e. it isn't a scam or loophole etc.

I've done this. It's probably not worth doing unless you have a special requirement to register a particular name. Most companies don't trade under their registered name so to me, it doesn't really matter either way.

hazysunshine

am wrote: »

I've done this. It's probably not worth doing unless you have a special requirement to register a particular name. Most companies don't trade under their registered name so to me, it doesn't really matter either way.

Hiya

Do I actually have to register a company name if I want to be a sole trader?

Thanks

Mistral001

hazysunshine wrote: »

Hiya

Do I actually have to register a company name if I want to be a sole trader?

Thanks

No you don't.