For a variety of numerous factors firms generally pick out to adopt a "trading" name when running their company. A trading name is rather merely a home business name adopted by a enterprise. It may well be utilised for a number of different factors. Maybe a provider owner has decided that the registered corporation name is not as appropriate as initially believed or a different name sounds far better. Very quite often many trading names may well be adopted exactly where a company is running a quantity of distinct organizations below the exact same umbrella. Whatever the case, there are a quantity of considerations to bear in mind when applying a trading name.
For factors of clarity, the law has imposed a number of needs on those suppliers applying trading names. These can be identified in the Enterprise Names Act 1985 and involve regulations stopping a provider from working with a trading name which is the identical as another company or from making use of one particular which may well be deemed as confusing. Along related lines when using trading names, a enterprise must adhere to the guidelines on sensitive words. Sensitive words are those that are prohibited or prescribed from use to avoid suppliers from misleading the public. This prevents a company from passing itself off as a government organisation or authoritative body. Providers are also not allowed to use "restricted" in their trading name as this would require registration of a enterprise below that name.
Exactly where a organization is using a trading name, it is legally necessary to make this truth clear. A notice on the enterprise premises and on all communications must clearly state that the business enterprise is owned by the restricted provider. For example, ABC Limited trading as XYZ.
Due to the nature of the trading name, it is essential to remember that it will not be registered and as such, will not have the very same protection as the original limited provider name. It is recommended that a when deciding upon a appropriate trading name, a enterprise carries out the exact same searches that it would have completed in the course of the procedure. Search the Organisations House database, scour your nearby small business listings, and check the net. It's necessary not to use a name which is already in use by a further home business. It is also worth considering that a trading name may well well be registered by yet another business as a limited organization name at some point in the future. You may perhaps consequently wish to contemplate registering the trading name as a non-trading provider in order to defend it.
Quite a few businesses operate effectively employing trading names and it is a perfectly frequent practice.
