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INTRODUCTION

Business names are no longer registered with any government departments. But there are laws about using certain names and disclosing certain details of ownership. 1982 many business names had to be registered under the Registration of Business Names Act 1916. This Act was repealed on 26 February 1982 when new rules on business names came into force in the Companies Act 1981. This law was replaced by the Business Names Act 1985. This allows the Secretary of State to have certain controls over the name you choose for your business and what you must tell others about the ownership of the business.

Some words and expressions are controlled by other laws. These rules protect the rights which persons may have in relation to names or words. (In law, "person" includes individuals and companies.) Any business names shown in this section for the sake of example are intended to be fictitious.

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Coddan is one of the foremost and most economical providers of limited companies formation and new business entity registration services in the UK. Coddan is a leading company set-up agent that has expertise in off the shelf companies, ready-made companies, own name company formation as well as company search, credit checking, company secretarial, accounting and bookkeeping, tax advice & charity registration. Simple cost effective limited company set-up. No paper forms to complete, all information provided electronically. Coddan offer a range of services for business, including business company set-up, virtual office services, mailing address, and company secretarial services.

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WHAT IS A 'BUSINESS NAME'?

It is a name used by any person, partnership or company for carrying on business, unless it is the same as their own name.

WHAT CHECKS SHOULD I MAKE BEFORE USING A BUSINESS NAME?

It is advisable to consult with Coddan CPM before using a business name. You should also check local phone books and any relevant trade journals or magazines, to see if any other business is already using the name. If it is, you could face legal difficulties. If you have any intention to trade goods or services, you would be well advised to ensure your business name does not conflict with a registered trademark. It does not have to be identical with a trade mark to cause possible conflict. Problems can arise if a name is judged to be confusingly similar. For further advice, including how to search the Trade Marks Register, contact the Trade Marks Registry of the Patent Office.

WHO DOES THE BUSINESS NAMES ACT APPLY TO?

It applies to: a company which trades under a name which is not its corporate name, for example, "XYZ Limited" trading as "Fish Antiques". A partnership which does not trade under the names of all the partners. An individual who trades under a name which is not his or her surname. It makes no difference whether the individual's first names or initials are added. So the Act would apply to Mr JQZ Singh if he traded as "Singh Antiques" but not if he traded as "Singh" or "JQZ Singh".

WHAT HAPPENS IF THERE IS A CHANGE OF OWNERSHIP?

When a business with a name that includes a prescribed word changes hands, the new owner must obtain further approval within 12 months to use the name. This applies whether the name was previously registered under the Registration of Business Names Act 1916, or approved under the Companies Act 1981.

DO THE DISCLOSURE RULES APPLY TO ALL BUSINESSES?

For example, if Mr W Jones trades as "W Jones Bakery", then the disclosure rules of the Business Names Act apply. Disclosure rules also apply to incorporated companies that trade under a different name, for example, ABC Foods Limited as ABC Foods. Incorporated companies must also comply with the disclosure rules in the Companies Act.

WHAT DETAILS MUST BE DISCLOSED ABOUT A BUSINESS?

You will need to disclose (as appropriate):

The corporate name. Or the name of each partner. The individual person's name; and in relation to each person named, an address at which documents can be served.

WHERE MUST THIS INFORMATION BE SHOWN?

Where must this information be shown? The places where you carry on your business and where you deal with customers or suppliers. Business letters. Written orders for the supply of goods or services. Invoices and receipts. Written demands for the payment of business debts.

MUST THE INFORMATION BE GIVEN TO ANYONE ELSE?

If asked for, the names and addresses that must be disclosed must also be given immediately, in writing, to anyone with whom you are doing business.

MUST ALL THE NAMES BE DISCLOSED?

If the business has more than 20 partners, you need not put all the partners' names on your business documents. However, you must give the address of the principal place of business and say that a full list of the partner' names and addresses can be inspected there.

WHAT HAPPENS IF I DO NOT COMPLY WITH THE REQUIREMENTS?

You commit a criminal offence if you use a business name that requires prior approval, and you have not obtained that approval. Similarly, you are committing a criminal offence if you do not disclose the business details that the Act requires. Remember, if you do not make your business details available, or you do not display them, you may not be able to enforce a contract that you have entered into.