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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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Is there anyway of using a trading name after the registered

Customer Question

Is there anyway of using a trading name after the registered company has gone into liquidation, I was a director of the company, but could someone else use the "trading as" name on my behalf?
Submitted: 4 years ago.
Category: Law
Expert:  Alex J. replied 4 years ago.
Hi,

Thank you.

If you were a director of the insolvent in the 12 months ending on the date of liquidation you are prohibited under S.216 of the Insolvency Act 1986 of being a director of a new company with the same or similar name for a period of 5 years without leave of the Court (basically you would have to apply for a court order). The penalty for doing this is personal liability for old co's debts and it is a criminal offence.

You can be a shareholder of new co (that has the same or similar trading name) so long as you do not do anything that would suggest you are a director i.e attend board meetings etc.

If you really want to start a new company with the same or similar name I would suggest that firstly you approach the liquidator and see if they will sell you the name if they agree you can then:
1. Either apply to court for leave to re use the name and be a director of the new co (the cost of this application is about £2k-£3k); or
2. Form a new co any one and install a different director - after five years you can then become a director of that company.

On a side note dealing with the change of name in practical terms you can:
1. Form a new co with any generic name and then switch it to old co's name if you get the liquidators permission;
2. Form a new co with any generic name and just adopt a trading style - if you do this without the liquidators permission they may seek damages off you if you have not purchased the name and goodwill.

I look forward to hearing from you.

Kind regards

AJ