‘Trading As’ soon something of the past

With the implementation of the Consumer Protection Act (Act 68 of 2008) in April 2010, businesses will have to trade under their registered names. Businesses trading under a name which is not registered may be closed down by the National Consumer Commission.

Two main sections of the Act deal with business names. Section 79 states that the Act prohibits the carrying on of business if the following are not adhered to:

• In the case of individuals or natural persons, they must trade under their full names as recorded in their identity documents;
• In the case of companies, close corporations or juristic persons, they must trade under those business names registered with the registrar of companies.

Should a trading name be used, that name must also be the registered name of the entity. Section 80 requires that every single name of a business be registered separately. This Section does not limit the number of business names that are used or will be used.

Examples

ABC Farming CC may not also trade as ABC Agricultural Equipment CC if the latter has not been registered separately. Another example is Peter Smith t/a PS Consultants. If PS Consultants is not the registered name, Mr Smith will have to conduct business as Peter Smith (to correspond with his identity document). He may display the word consultant below his name on his stationery, but not to the extent that it will be interpreted as his business name.

Please contact Tenk Loubser & Associates in Somerset West on tel. 021 852 0382 for further professional service or assistance.