Using Ltd in company name when not registered

[davidman]

I've just been dealing with a case of someone complaining about someone else using their company name.

E.g. Widgets Ltd

The thing is, the name isn't registered in Companies House and it got me wondering, is there a penalty for calling yourself limited when you're not?

 

[mhall]

I don't know what the penalty is but it is certainly fraud

 

[davidman]

I guess prosecution under fraud laws ought to be penalty enough.

 

[Mpg]

Is it fraud. They're not saying they are a limited company.

They just have LTD or limited in their name.

I thought LTD or Limited had to be backed up with a registration number etc

These guys have the word limited in their name
http://www.limited-resources.co.uk/
http://www.thelimited.com/

 

[JamesCartwright]

According to Section 1197 of Companies Act 2006 - any unlimited company ending its name with: limited, public limited company, community interest company, community interest public limited company, or any abbreviations relating to the above...are liable to a fine.

I guess, as previously stated, as they are indicators of company type/legal form...and using them is misleading.

N.B. Ending name with these terms...I guess Limited could be maybe used elsewhere (not that its related to your matter).

 

[WJP]

You can't use it at the end of your name unless you're actually a limited liability company.

For example, see if you look at the website of Limited Resources, their name is actually Limited Resources Limited.

As for The Limited, they are The Limited LLC (a Limited Liability Corporation), in the States.

So both your examples are limited companies anyway.

 

[Mpg]

Thanks I did also think that. But trying to look at it from another point of view.

Its a shame calling yourself a managing director even though your a sole trader is legal

 

[WJP]

But calling yourself a managing director doesn't bring with it the assumptions that people make (often legally related) when they hear that you are "limited"...

 

[mahutchinson]

According to Section 1197 of Companies Act 2006 - any unlimited company ending its name with: limited, public limited company, community interest company, community interest public limited company, or any abbreviations relating to the above...are liable to a fine.

I guess, as previously stated, as they are indicators of company type/legal form...and using them is misleading.

N.B. Ending name with these terms...I guess Limited could be maybe used elsewhere (not that its related to your matter).

But it's not an unlimited company - it's not a company at all so far as I understand the OP.

 

[Mpg]

Thats another way of looking at it.

 

[JEREMY HAWKE]

What happens if your a sole trader and your name is Billy Limited