Can a PTY Ltd use Trading As...?

[SamanthaLeigh]

The whole issue of registering trading names at CIPC has never been implemented and the whole Chapter 4 of the CPA is therefore problematic. As it stands, SARS and banks will allow trading names as was done in the distant past.

In connection with SamanthaLeigh's post, I would definitely accept the advise of her accountant if I were her. Attachment 6547

Hi Andromeda,

Thanks so much for the attachment. It was very helpful! I see the letter was written in 2012 - has nothing been implemented since then?

[Dave A]

Knowing that I am trading as with the name that cannot be registered because the CIPC will reject anyone who tries to do so?

I'm trying not to let my imagination run away with me.
I'd assumed the issue was it was too close to another name already registered, but that sounds way more interesting.

What reason did CIPC give for not registering the name?

[wynn]

It must be possible to use the name you want to as a description on your stationery, advertising etc. keeping the trade name tiny and the description large
eg.
Joe Bloggs Pty (Ltd)
Film Agents and designers.

[Richard S]

As far as the vat is concerned, that is my experience. I tried to cancel my registration after about 8 years of not trading but have discovered in the last week that I am still registered. I suspect that it will die with me. Perhaps.

And as far as using a 'trading as' name I think your accounting firm's reasoning is spot on. I would simply use the name and in the unlikely event that there is ever an official complaint you can apologise and modify it. But this would be highly unlikely unless you called your business Clicks or ABSA or something in that vein. By the time anyone cottons on you will hopefully have a data base you can email with your new details (advertising opportunity) and publish an apology via a press release(s). (advertising opportunity)

It is easier to apologise than get permission and there is minimal chance of repercussion.

Just my opinion, after 30+ years in business. Having said that, if your product or service lends itself to Wynn's suggestion, that's a solution nobody can object to.

[SamanthaLeigh]

I'm trying not to let my imagination run away with me.
I'd assumed the issue was it was too close to another name already registered, but that sounds way more interesting.

What reason did CIPC give for not registering the name?

Hahaha! Not as interesting as your imagination Dave - sorry! The name I want to register is Casting 101.

The CIPC says that there are too many conflicting names with 'Casting'. My accountant also just explained to me that the word 'Casting' is probably too close to a function, which apparently the CIPC reject automatically.

The company doing my registration for me has double checked and no one has registered the name Casting 101 so I will now happily register another name but Trade As Casting 101 knowing that no one should be sueing me!! As it was mentioned earlier, it is easier to ask for forgiveness than permission.

Thank you everyone for your advice and expertise! I now feel confident going forward with this! You've been a massive help!

[SamanthaLeigh]

Thanks so much for this!
I will now happily and confidently move forward with registering a PTY ltd and just trade as the name I've been using for the last 2 years!
I appreciated your advice and experience! (Especially with the VAT - eish!)

[Andromeda]

So the last conversation I had with the accounting firm that is helping me is to see if the name I want has been registered by anyone else. He says if it HASN'T been registered by anyone else then I can Trade As with that name knowing that no one else can register it (because we couldn't).

So would that be legal? Knowing that I am trading as with the name that cannot be registered because the CIPC will reject anyone who tries to do so?

The long established rule (but which have always frequently been ignored), is that if you use trading name you must also state the registered name and registration number. If that rule is adhered to then there can never be an issue or confusion.

Regarding the withdrawal of that 2012 notice; no it is still in effect. To register a trading required that you register a defensive name, and that functionality is still suspended (I just checked) at CIPC.

And I agree totally with your accountants; if you register for vat in your personal capacity it will haunt you. Besides the long term effect there is the matter of what is "in" and what is not.