Can a sole trader own a dormant company and still trade as sole trader?

I want to register a dormant company, mainly to protect the business name and to make sure that nobody else gets it. I currently trade as a sole trader and don't want to change status as it wouldn't make economical sense right now.

From what I've read, registering a dormant company seems quite straight forward but I can't find any info that comes from the point of veiw of someone that's self-employed already.

Cheers.

 

Yes, there is no problem doing that.

 

I do this - Lease held by LTD Co.
and i run as Sole Trader.

Gives security.

 

Your status as a sole trader is entirely irrelevant. Just make sure you reply to HMRC and inform them that the company is dormant so that they don't ask you for CT returns.

 

I have been working for a company for 3 years which has been registered as dormant since 2009. The company regularly took cheque payments in the company name from clients, but I beleive they where trading as a 'Group' of companies.

The reason I ask is because the company director made all the staff instantly redundant leaving us with no income, we started a rival company and I informed some clients that the old company was 'NO LONGER TRADING'. The director of the old company is threatening me with legal action.

Any advise would be much appriciated?

 

Hi I did the same 4 years ago. I started trading as a sole trader to see If the business will work..after a year I saw it was progressing so I registered a limited company (to protect name)

Now I am in a position to cease sole trader and activate limited company.

Don't forget you will need to fill dca annually and a annual return for the limited company.

 

A simpler and cheaper option would be to just protect your Trading Name. See http://www.start.biz/business_names/protection_information.php

 

Registration of a dormant company will not protect your business name.

You can register a name at Companies House but this gives no protection, it simply stops anybody registering the identical name in the same way.

The register of business names run by the National Business Register at start.biz also has no legal effect or statutory authority, it is simply a private register run by a commercial company for profit.

Trade mark registration, however, protects all forms of commercial usage of a name, whether as a company name, business name, product name, shop name, domain name, website name, in fact any form of commercial activity under the name which is likely to lead to confusion.

Our website has plenty of free information and initial consultations are also free. Further information on the power of trade mark registration can be found here.

 

Oh I would agree entirely, kulture, always obtain domain name registration for the most obvious variations of your name to keep them out of other people's hands; it's simple and cheap and well worth doing.

 

Hi Philip, I know it's an old thread, but still relevant. This is exactly the info I'm looking for. What is the lowest cost to setup the trade mark registration for the name of the company please?

 

Hi, just to clarify, were you trading as a sole trader at the same time as having a dormant company, in the same company name as both?

 

Vik was last seen 6 years ago.

You can use the same name as your limited company, just don't mention the word limited. SO you can register ABC Trading Ltd and use ABC Trading as your sole trader name. You have to disclose your own name on business documents.

 

Thank you very much Scalloway. So, in your example above, you could keep ABC Trading ltd as a dormant company, not transacting any money at all, and at the same time, conduct a business in the name of ABC Trading - as sole trader, transacting money?

In general terms, how much does it cost upfront and annually to have a dormant company registered with Companies House? Paperwork - under 5 hours a year? Is anyone from any professional services needed when setting up the dormant company with CH? Like solicitors or accountants etc? Sorry for all the questions, I've never been down this route before.

 

You need to do an annual confirmation statement which costs £13 to file online and file dormant accounts each year which can be done by filling in a few lines on a standard form.

 

Thank you very much Scalloway, you're a gem.