What is a trading name in the UK?
A trading name is an alternative to a company’s official name registered with Companies House. Using a trading name instead of company name is legitimate and common among UK business owners. If you’ve ever seen phrases like the one below on a website or letterhead, you’ve encountered a company using a trading name.
“Big Trucks Limited trading as Massive Trukcs“
In this instance, ‘Big Trucks Limited’ is the company name, and ‘Massive Trucks’ is the trading name (also known as the business name or trading as name).
The company name
When forming a limited company, you must choose a unique company name that is not similar to any existing names on the Companies House register.
By forming a limited company, you protect your company name by preventing others from registering the same or a similar name with Companies House.
Why use a trading name in the UK?
There are several reasons why a business might choose to use a trading name instead of its registered company name:
- Clarifying Services: A company may offer different services that are not immediately clear from its main company name, so it uses alternative names to highlight these services.
- Simplifying Administration: As a company grows and offers new products and services, business owners may use different trading names to minimize administrative tasks, such as filing confirmation statements and annual accounts, instead of forming new companies.
- Branding Opportunities: A company might find that a new trading name is more effective from a marketing perspective than its registered company name.
Protecting a trading name
Trading names do not receive the same level of protection as company names because they are not registered with Companies House. However, you can register the trading name as a trademark to provide some level of protection.
If you plan to use a trading name, consider the following steps:
- Check for Conflicts: Verify the Companies House register and trademark database to ensure your trading name isn’t the same as or similar to any existing names currently in use.
- Display Names Clearly: Make sure both your company name and trading name are visible on your website, correspondence, and at your place of business.
- Notify HMRC and Your Bank: Inform HMRC and your bank that you are using a trading name to avoid any tax complications and payment issues.
A trading name can be valuable as your business grows. Just ensure you protect your brand and reputation by conducting due diligence on the names you use.
Do you have any other questions?
We’ve clarified what a trading name is and how it differs from a registered company name. A trading name is an alternative name a business uses for branding purposes, which is not registered with Companies House. Although it offers flexibility in marketing, it doesn’t provide legal protection like a registered name does. To safeguard a trading name, consider registering it as a trademark.
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