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Sole trader carries out same activity as his limited company

2

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  • Bookworm105
    Bookworm105 Posts: 2,015 Forumite
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    edited 13 October 2024 at 12:13PM
    autoplay said: Hence, I would like to know what is this law that this sole trader could have breached which says that a sole trader cannot use a similar or same name as an incorporated limited company

    there is no such law

    as it appears you are an unhappy customer then focus your efforts on understanding the terms of any contract you had with the person you are unhappy with.
    Follow up on any definitive breach of that contract.

    You are wasting your time trying to claim you were confused who you were dealing with. 
  • Mistral001
    Mistral001 Posts: 5,431 Forumite
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    edited 13 October 2024 at 12:59PM
    Why would you prefer to work with the Ltd Company than a sole trader business?  The sole trader business is owned by a single person who is personally responsible for all financial affairs of that business.  Their house, car, TV could be repossessed to pay off any debts that the sole trader business has, while the Ltd company can go bust and the director's personal finances will not usually be affected and often leaving little or no money to distribute to their creditors.
  • autoplay
    autoplay Posts: 59 Forumite
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    In the website of the Government

    https://www.gov.uk/become-sole-trader/choose-your-business-name

    It is stated the following:

    Sole trader names must not:

    ·         include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’

    ·         be offensive

    ·         be too similar to another company’s trademarked name (because you may have to change it if someone makes a complaint)

     

    This means that if the sole trader uses the same name as his limited company with the “ltd” less for example ABC instead of ABC ltd he will use a name very similar to this of his limited company and this should be illegal


  • comeandgo
    comeandgo Posts: 5,930 Forumite
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    edited 13 October 2024 at 4:12PM
    autoplay said:

    In the website of the Government

    https://www.gov.uk/become-sole-trader/choose-your-business-name

    It is stated the following:

    Sole trader names must not:

    ·         include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’

    ·         be offensive

    ·         be too similar to another company’s trademarked name (because you may have to change it if someone makes a complaint)

     

    This means that if the sole trader uses the same name as his limited company with the “ltd” less for example ABC instead of ABC ltd he will use a name very similar to this of his limited company and this should be illegal


    Your article above means the sole trader, must not use Ltd if he is trading as a sole trader, off course he must use Ltd if he is trading as a ltd company, nothing to state he can’t have two different companies at the same time, one as a sole trader and one as ltd company.    I’d not imagine his name is trademarked.
  • lincroft1710
    lincroft1710 Posts: 18,965 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    autoplay said:

    In the website of the Government

    https://www.gov.uk/become-sole-trader/choose-your-business-name

    It is stated the following:

    Sole trader names must not:

    ·         include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’

    ·         be offensive

    ·         be too similar to another company’s trademarked name (because you may have to change it if someone makes a complaint)

     

    This means that if the sole trader uses the same name as his limited company with the “ltd” less for example ABC instead of ABC ltd he will use a name very similar to this of his limited company and this should be illegal


    The bit you have underlined is designed to stop (for example) a Mr Walter Disney of Sidcup starting up as "Walt Disney". What your sole trader has done is NOT repeat NOT illegal and is unlikely ever to be so
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • 400ixl
    400ixl Posts: 4,482 Forumite
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    That is saying the sole trader company name cannot include the words quotes in the company name. Not that they cannot also have a limited company.

    The last part is that it is not advisable to use the same name for a sole trader company as a trademarked company as they may come ans sue you. He is hardly likely to come and sue himself so there isn't that risk.
  • Bookworm105
    Bookworm105 Posts: 2,015 Forumite
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    edited 14 October 2024 at 10:42AM
    autoplay said:

    In the website of the Government

    https://www.gov.uk/become-sole-trader/choose-your-business-name

    It is stated the following:

    Sole trader names must not:

    ·         include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’

    ·         be offensive

    ·         be too similar to another company’s trademarked name (because you may have to change it if someone makes a complaint)

     

    This means that if the sole trader uses the same name as his limited company with the “ltd” less for example ABC instead of ABC ltd he will use a name very similar to this of his limited company and this should be illegal


    going by your first few words I appreciate English may not be your first language so I assume you have missed the nuance of that info.

    it is not to provide grounds for a consumer to complain, it is to provide grounds for Company A Ltd to take action against sole trader B "passing themselves off as" a name very close to that of A (or just downright using the same legally trademarked name, if that extra level of protection has been taken out by Company A) or (potentially) vice versa. 

    The exception being Fred Bloggs Lld cannot stop someone whose real name is Fred Bloggs trading as a sole trader called Fred Bloggs. You cannot be stopped from using your own (real) name.

    for the umpteenth time, you have no legal grounds for complaining about a sole trader using a trade name which is the same as a Ltd company that they themselves own provided that in doing so the sole trade does not pretend to be the Ltd company when doing business

    if you are not willing to accept what people are telling you on here then pay for professional legal advice
  • As others have said, I think you are wasting your time with this. Bit of a long stretch to prove that they have actually done anything wrong/actually find someone/dept that would want to investigate it. 
  • Grumpy_chap
    Grumpy_chap Posts: 18,357 Forumite
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    This means that if the sole trader uses the same name as his limited company with the “ltd” less for example ABC instead of ABC ltd he will use a name very similar to this of his limited company and this should be illegal


    No - it is not illegal for an individual to own a Ltd Co, say ABC Ltd and also trade as a sole trader using the trading name "ABC".  It would be illegal for the individual operating as a sole trader to use the trading name "ABC Ltd".

    The possible restriction on the individual (sole trader) using the trading name "ABC" would be if "ABC Ltd" took action to protect their tradename.


    The exception being Fred Bloggs Lld cannot stop someone whose real name is Fred Bloggs trading as a sole trader called Fred Bloggs. You cannot be stopped from using your own (real) name.
    For the sake of clarity on this point, a genuine Fred Perry can operate a business using their own (real) name as a sole trader as Fred Perry.  If, however, that sole trader uses their name with a typeface plus laurel wreath logo that implied a connection to an established sports wear brand, then Fred Perry could expect to receive a "cease and desist" letter in the first instance.
  • Bookworm105
    Bookworm105 Posts: 2,015 Forumite
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    For the sake of clarity on this point, a genuine Fred Perry can operate a business using their own (real) name as a sole trader as Fred Perry.  If, however, that sole trader uses their name with a typeface plus laurel wreath logo that implied a connection to an established sports wear brand, then Fred Perry could expect to receive a "cease and desist" letter in the first instance.
    yes, but that is about use of brand ID and/or logo, not the actual name
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