Question

BusinessForums

Hi Guys,

A friend of mine has asked me for some advice.

They have a company running that has been largely successful. They are looking at expanding the operation somewhat into a new market that is somewhat in line with what they currently do.

Here is the questions, are they better off registering a new company for this expansion. Considering that there will be different staff (except management), different business model, different markets etc. Or, should they register a business name for the company to trade under?

Obviously using the business name has it's advantages:

• Expand existing insurance policys to cover new activity, rather than new ones.
• Proven track record with the company, even if it is in slightly different market.
• Business plan already in place.
• Bank accounts and infrastructure in place.
• Non duplication of legal and accounting fees etc.

The only draw back I can see at the minute is that I am not sure if they register a business name it will be protected like a company name?

If a company registeres a business name, does that afford the same protection as a company name, by way of the fact that a company owns it?

Interested in getting your thoughts on this...

Thanks.

dbran

Hi

Registering a business name offers no protection at all. It doesn't matter who owns it. Only way of ensuring protection is by registering a company. The company does not have to trade though...

Kind Regards


Dbran

BusinessForums

Thanks for the info dbran.

Is there any way they can use existing infrastructure for new venture, and have name protected without having to register new company and duplicate expense and admin such as insurance, cro filing, revenue, bank account, and accountant fees?

Thanks