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    Question Can a PTY Ltd use Trading As...?

    Hi Forum,

    I have been running a sole prop business for the past 2 years. I have done a million rand turn over in this last financial year and so now need to register for VAT.

    My accountant has strongly urged me to NOT register as a VAT vendor in my personal capacity, but to rather register my company as a PTY Ltd and then register the company as a VAT Vendor. That is all fine and well.

    The problem I have run into is that the name I have been trading under as been rejected by the CIPC and I have been told that a PTY Ltd cannot trade under any other name other than the one that they have registered - according to the new Consumers Act - is this true?

    The internet has been incredibly conflicting. Some people say you can't, some people say you can but be prepared to be sued if the name you are trading under ever finds you!?

    Please help!

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    Yes you can - we are a PTY trading as Human Resource Solutions and have been for 13 years

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    Full Member padjakkels's Avatar
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    Why should you not register as a VAT vendor in your own name? Any reasons?

    Sent from my SM-A700F using Tapatalk

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    Quote Originally Posted by padjakkels View Post
    Why should you not register as a VAT vendor in your own name? Any reasons?

    Sent from my SM-A700F using Tapatalk
    Hi there,

    He says not to register as a VAT Vendor in a personal capacity because it will follow me for life. So if I ever want to leave the industry I am in (which is film) and decide to start selling crocheted blankets (for example), then I am going to have charge VAT on all the blankets I sell. And he says to de-register as a VAT vendor is a extremely lengthy and complicated process.

    That's why he advised me to register as a PTY so that we could register the company as a VAT vendor.

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    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by SamanthaLeigh View Post
    I have been told that a PTY Ltd cannot trade under any other name other than the one that they have registered - according to the new Consumers Act - is this true?
    Not quite. Legally, you can't trade under a business name that you haven't registered (the relevant legislation is Section 79 of the Consumer Protection Act). However, you can register a business name that is different from the name of your company.

    For example, let's say you register a company called "Joe Smith (Pty) Ltd." but want to trade as "Joe Smith Widgets". Legally, you can't trade as "Joe Smith Widgets" until you register "Joe Smith Widgets" as a business name. Once you do, you can trade as "Joe Smith Widgets" or as "Joe Smith (Pty) Ltd."

    Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.

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    Quote Originally Posted by Greig Whitton View Post
    Not quite. Legally, you can't trade under a business name that you haven't registered (the relevant legislation is Section 79 of the Consumer Protection Act). However, you can register a business name that is different from the name of your company.
    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. 2012_06_05_Registration_trading_names.pdf

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    Quote Originally Posted by Andromeda View Post
    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. 2012_06_05_Registration_trading_names.pdf
    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?

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    Quote Originally Posted by Greig Whitton View Post
    Not quite. Legally, you can't trade under a business name that you haven't registered (the relevant legislation is Section 79 of the Consumer Protection Act). However, you can register a business name that is different from the name of your company."

    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?

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    Quote Originally Posted by SamanthaLeigh View Post
    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?

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    Quote Originally Posted by Dave A View Post
    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!

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