If you have a business idea and have chosen a trading name, but are not yet ready to trade, then a Dormant Company is useful for reserving your company name until you are ready to go.

Another scenario may be that running your business as a Limited Company is not the most tax efficient option for you but you still want to protect your trading name.

You could try and register your brand as a Trade Mark but this is expensive, it can take months to complete and there is no guarantee that a future infringer will even check the Intellectual Property Office’s Trade Mark Registry.

Registering a dormant company is a much simpler and cheaper option. Granted it does not provide you with the same level of protection as a Trade Mark would, but the Companies House register of company names is more accessible and far more likely to be checked by a potential interloper to your brand.

You can register your trading name as a limited company, but continue to carry on your trade as a Sole Trader, leaving the limited company dormant.

Beware, though, that just because you are not trading through your limited company, this does not release you from your corporate responsibilities; you will still need to file Dormant Accounts and an Annual Return each year. To ease this burden, Company Formations 247 offer a Dormant Company Maintenance service. We will keep your company filings up to date for as long as the service is active and for as long as the company remains dormant.

A dormant company may not be the only solution for name protection, but it is one method that will get a lot of visibility and act as a deterrent to anyone that shares your name idea.

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Simon has been working in the Company Formation industry since 2003, spending five years with Companies House before joining the private sector and has been with Company Formations 247 since 2008. Originally focusing in specialist formations and company secretarial drafting, Simon is now one of the directors of the Company. Simon contributes articles predominantly on Company Secretarial matters, but has knowledge covering all areas of Company Formation.


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