Trading name protection

Gazaxel22

I've read so much on the net I'm even more confused!

I have just set up a small online sales business as a sole trader.
I only want to be a sole trader, and don't want to be a limited company.
However I have thought of a trading name that I want to protect as best as possible.

Any tips on how to do this?

The name has not been registered with companies house.
Would registering the name with companies house as "dormant" protect it as a sole trader "trading name"?

Thank you

antrobus

Gazaxel22 wrote: »

.... Would registering the name with companies house as "dormant" protect it as a sole trader "trading name"? .....

It would help. Plenty of people do just that.

zax47

antrobus wrote: »

It would help. Plenty of people do just that.

That would just stop another Ltd Company taking the name - a sole trader, however, can pretty much call themselves whatever they like, e.g. Fred Bloggs t/as Bloggs Decorators, there's no real "protection" except to go Ltd. Mick Bloggs, Dave Bloggs and Cyril Bloggs can all trade as "Bloggs Decorators" if they want to. If he were Bloggs Decorators Ltd then there can only be one Bloggs Decorators Ltd. OP doesn't want to go Ltd though.

Gazaxel22, Sole Traders DON'T "register" with Companies House, only Ltd Companies do. You have to tell the tax man (HMRC) but that's it.

antrobus

zax47 wrote: »

That would just stop another Ltd Company taking the name ....

That's right. That's why people do it.

There is always the danger that at a later date someone else may register the trading name as a limited company and then stake their claim. This could clearly cause complications for your business as they will have the right to the name and therefore can force you to stop using it. So it is advisable to carry out a company formation and register the trading name as a limited company, then keep that company dormant

http://blog.thecompanywarehouse.co.uk/2010/02/18/trading-as-company-and-business-names/

zax47 wrote: »

....Gazaxel22, Sole Traders DON'T "register" with Companies House, only Ltd Companies do. You have to tell the tax man (HMRC) but that's it.

I think the OP already knows that. He has however done the sensible thing and checked that his desired trading name has not already been used for an existing limited company.

zax47

antrobus wrote: »

I think the OP already knows that. He has however done the sensible thing and checked that his desired trading name has not already been used for an existing limited company.

Really? "Would registering the name with companies house as "dormant" protect it as a sole trader "trading name"?"

Well, no it wouldn't. It would protect it as a Ltd Company name, but there's no similar protection for sole trading identities.

Mistral001

This is perhaps one for the tech forum as it is an online business which seems to have its own "rules" usually unenforceable by law unless you have a spare $million in the bank.


As others have said you cannot protect your name as a sole trader. You can register a trade mark though.

antrobus

zax47 wrote: »

Really? "Would registering the name with companies house as "dormant" protect it as a sole trader "trading name"?"

Well, no it wouldn't. It would protect it as a Ltd Company name, but there's no similar protection for sole trading identities.

Your misunderstanding is persistant, I'll grant you that.:)

It is quite common for sole traders in possession of what they regard as a valuable trading name to register a limited company in that name, in order to prevent someone else from doing the same. (Aside from the fact that it's quite useful if the sole trader in question decides to incorporate at a later date.)

The OP asked "Would registering the name with companies house as "dormant" protect it as a sole trader "trading name?". My response - "It would help. Plenty of people do just that." - remains valid for the stated reasons.

Mistral001 wrote: »

....As others have said you cannot protect your name as a sole trader. ...

Google 'passing off'.

Mistral001 wrote: »

...You can register a trade mark though.

http://www.ipo.gov.uk/types/tm/t-applying.htm




http://www.ipo.gov.uk/types/tm.htm

Mistral001

antrobus wrote: »

Google 'passing off'.

Passing off is something the OP has to worry about, but not from the point of view of protecting his trading name but from the point of view of making sure that he is not accused of getting trade from people who think he is another firm by virtue of the fact that the name is the same or similar to that of an established firm. In that case the other firm could sue for lost trade.


Your point about setting up a Ltd company to "protect the name" but not using it for trading maybe be used by lots of people but does it really protect anything? If the company was Fred Bloggs Cars Ltd, what is wrong with someone trading as a sole trader as Fred Bloggs Cars (without the Ltd). How could Fred Bloggs Cars Ltd sue Fred Bloggs of Fred Bloggs Cars? Fred Bloogs of Frd Bloggs Cars has not set up a Company. He might be able to sue on the basis of passing off but then he could do that anyway if the Ltd Company was not set up and both were trading as sole traders using the name Fred Bloggs Cars. As far as I can see the setting up of the Ltd Company might work as scare tactics, but if challenged it might not stand up in law.

ilkz

I have been looking into this recently as well for a soletrader, and I came across the 'National Business Register' (web address - start.biz). If I remember correctly, I came across this site via startups.co.uk.

Is it legitimate? It seems you can pay them £100 per year to protect your trading name?

Mistral001

You do not have to register a business name in the UK. These firms prey upon people who think you do.

Gazaxel22

Now you know why I am confused haha.

I know you can't protect a trading name and others can use it too.
But I was under the impression "you should ensure no one locally or doing the same trade already has your chosen trading name" as this could be a problem (the passing of point).

So my thoughts were if I registered a dormant ltd company name, and used that name without the ltd as a trading name, it would put me in the better position if someone else in a similar trade (mobile phones) used the same trading name.

Would that make sense or would it be irrelevant?