A trading name is one of the first things you need to choose when starting a business. This name will serve as the operating name for your company and the name that customers will connect with your goods or services. Many individuals aren’t sure, though, whether they must register their trading name or if they can simply begin using it right away without any procedures. In this post, we will examine whether a company is regarded as a business and whether a trading name needs to be registered.
The short answer to the question of whether a trading name needs to be registered is no, it does not. Before determining whether or not to register your trading name, there are a few factors to think about. First off, you do not need to register your trading name if you are a solo trader and use your own name as it. However, you might need to register it as a business name if you’re using a name that’s distinct from your own. Second, you must register your company name with the Companies Office if you are conducting business as a corporation. This is due to the fact that a company must have a registered name because it is a different legal entity from its owners.
It’s important to remember that registering a trading name will not grant you any legal protection or exclusive rights to use the name. You must file it as a trademark if you wish to safeguard your trading name. By doing this, you will be granted sole use of the name and will be shielded from unauthorized use.
Let’s turn to the second query now. A company: Is it a business? Yes, a company is a specific kind of corporate structure. A company can enter into contracts, own property, and accrue debts in its own name since it is a separate legal entity from its owners. In contrast to a sole proprietorship or a partnership, where the company is not a separate legal entity from its owners, this situation is unique.
Operating as a corporation has a number of benefits, including limited liability, which exempts the owners from being held personally responsible for the company’s debts. However, running a business also entails a number of legal and administrative responsibilities, such as registering with the Companies Office, submitting annual returns, and adhering to a number of rules.
In conclusion, unless you are operating as a company or using a name that is different from your own name as a sole trader, you do not need to register your trading name when starting a business. But you must file it as a trademark if you want to safeguard your trading name. A company is a particular kind of business structure that has its own set of statutory and regulatory restrictions.