The Difference Between Trading Name And Company Name

A business has both a company name and a trade name. Now the thing is, what is trading name and company name, and what is the difference between trading name and company name? The company name is a formal name. On the other hand, a business’s trade name is the name it wants people to know it by. For example, WalMart Inc. is its formal name. Its business name is Walmart. Any company wanting to run a legitimate business and provide excellent service must register. This proves that it is a private limited business. It helps the business persuade and draw investors. At the same time, it can help you get more business.

What is A Company Name?

Before we talk about the difference between trading name and company name, we’ll first know what a company name and a trading name are. Your company name is the name you give your business when you begin it. You must pick a name unique to your business because you can’t register a name if there is already a business with that name. The Companies Act 2006 says that when you pick a name for your business, you must make sure it obeys these rules:

• Your business name shouldn’t make people think it has anything to do with the UK government or a public body.
• It can’t have any offensive language, slang, or rude words in it unless you get permission first.
• It can’t be the same as or sound like the name of another listed business.
• It needs to end with the right letter (Ltd, CIC, Plc, etc.).
• It cannot contain any prohibited letters, marks, or symbols.

If you want to set up a business in the UK, Company Registrations Online can help you pick the right company name for your venture and make sure it obeys the rules set out in the Companies Act 2006.

What is A Trading Name?

If you file a business name with Companies House, no one else can do the same. But trademark law doesn’t instantly protect you. When it comes to trading names, they are not as safe. If you don’t want other businesses to use your name, you’ll need to register a brand. A person, partnership, or business can use a name different from the one they registered with Companies House. This form of identity is called a trade name. A company can have as many trade names as it needs, but none can be recognised as the official name of the business. Companies in the UK often choose a brand name to use for their business. Their business’s listed name differs from this one. Some limited companies even run more than one business under different names, but they are all still part of the same limited company. Limited companies, sole traders, and partnerships aren’t the only ones that have business names.

Difference Between Trading Name And Company Name:

Having a registered trademark is not the same as having a registered business name. Here we discuss the difference between trading name and company name:

A trademark is like a badge of origin; it lets you use that name only for you, and it stops other people from using the same or a confusingly similar mark in the same field. If you use a registered trademark as a business name or trade name, you are breaking the law in the UK. You can also complain to a company’s registered name if it is the same as a registered trademark. This is true whether the trademark was registered before or after the company was formed. So, before you register a business name, you must first look it up on the UK Intellectual Property Office (UKIPO) trademark list. Because of these things, after you register your business name, you should think about it.

Benefits Of Using A Company Name vs A Trading Name:

After discussing the difference between trading name and company name, we move further towards the benefits of them. Many UK businesses choose to use a trade name despite the risks. It can save time and money on administrative and secretarial work to use one or more trade names under the umbrella of a bigger parent company. This is because paperwork only needs to be made in the listed company’s name. Using trading names is another way to set apart different parts of your business. The main part of your business can go by the company name, and any branches or specialised areas can have their names. This feature can help people who are interested in your services easily tell the difference between them.

Using a trade name is also helpful because it keeps your company’s brand consistent, especially online. You can select a trade name that complements an existing domain name and a social media handle. If you use more than one business name for the same company, you may not have to file as much paperwork, like yearly accounts and confirmation statements. This is because you would only need to file these papers in the company’s name. People who are interested in your services can see that you offer them under different business names. For instance, the business you filed with Companies House might be a web design firm, but you also offer content writing and expert SEO. Choosing a trade name enhances the appearance of your business. You could use the trade name that fits the brand name, website, and social media handles you want for your listed business if the domain name and social media handles are already taken.

Drawbacks Of The Company And Trading Name:

If you use more than one business name for the same company, you may not have to file as much paperwork, like yearly accounts and confirmation statements. This is because you would only need to file these papers in the company’s name. People who are interested in your services can see that you offer them under different business names. For instance, the business you filed with Companies House might be a web design firm, but you also offer content writing and expert SEO.

You could use the trade name that fits the brand name, website, and social media handles you want for your listed business if the domain name and social media handles are already taken.

Conclusion:

Understanding the difference between trading name and company name is crucial for every business owner. It not only helps you obey the law, but it also helps shape the character of your brand. It’s important to think about what will happen to your business if you join a company with Companies House or choose to use a trade name. This includes protecting your intellectual property and the possibility of being sued. The name of your business can affect its operation and bank account. Take time to research and choose a name that matches your business’s values and goals. When you start a business, you have to make many choices. Picking the right name is just the first one. Know what’s going on, obey the rules, and let your business name lead you to success.

Disclaimer: This blog contains general and accurate information, but we do not hold any legal responsibility. For further legal advice, seek assistance from a legal advisory service.