How To Register Two Companies Under Single Name

Yep, it is possible to run two or more divide businesses under a single limited company. This involves the utilize of trading names to compartmentalise the overall visitor into split up units, each of which tin can be run equally a unique business.

What are trading names?

Trading names, also known as 'concern names', essentially provide a mode for limited companies to trade under a name that is non their registered visitor name. For case, if the registered company name is "Bristol Green Hammocks Ltd", a trading name could be "Bristol Green Hammocks", "Green Hammocks of Bristol" or even a completely unrelated proper name such as "Blue Tents of Newcastle".

Furthermore, information technology is possible to use multiple trading names to run several different businesses, e.g. "Bristol Light-green Hammocks" and "Blueish Tents of Newcastle". But each of these businesses will be trading as a segmentation of the express company and this must be made clear in any company documentation, on websites, business organisation stationery, etc.

Please annotation: Trading names are not just used past limited companies – other concern structures such every bit sole traders and partnerships can too employ trading names.

What are the rules for trading names?

In that location are certain rules pertaining to the use of concern names, including:

Trading names must not include 'limited', 'Ltd', 'limited liability partnership, 'LLP', 'public limited company' or 'plc'
They cannot incorporate any 'sensitive' words or expressions – unless permission is obtained
If it is too similar to the trading name of a like business (e.one thousand. a competitor), this could lead to accusations of 'passing off'
A trading name should non exist too like to a trademark

Equally mentioned previously, the proper name of the limited visitor should be included on all company documents in addition to the trading name. This includes concern letters, order forms, and websites.

What are the benefits of running two or more businesses under one company?

Various different related goods and services can exist provided past a single company. However, if a business decides to significantly diversify, it will often brand more sense to trade the diversified component under a unlike proper name.

This tin assistance with make building so that the different product lines are associated with specific trading names. For instance, Bristol Dark-green Hammocks Ltd may notice that its company name helps them to sell greenish hammocks to customers in Bristol, but it could put them at a disadvantage when trying to sell blue tents to customers in Newcastle.

Running multiple businesses under one company instead of incorporating new companies to run individual businesses will have the do good of saving time and money on company secretarial work, such as maintaining statutory registers, and also annual filings such equally Confirmation Statements and annual accounts.

Multiple limited companies

Another choice, rather than running multiple businesses using trading names, is to register multiple companies which and then get subsidiaries of the parent company. If the companies are genuinely different businesses, this may help to band-debate certain liabilities if ane company finds itself in fiscal difficulties.

It tin also help to secure investment or sell a particular venture farther down the line. Nonetheless, maintaining multiple limited companies requires a lot more than assistants and accounting, which may outweigh any benefit for smaller businesses with relatively straightforward tax affairs.

Alex Heshmaty

Alex Heshmaty is a legal copywriter and journalist, and founder of legal content company Legal Words. He has a item interest in legaltech, DIY law and the means in which engineering science can help individuals and small businesses to better understand and assert their legal rights.

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