The requirement is that dormant companies must file with Companies House to show person(s) with significant control “PSC”. There is no requirement for sole traders or partnerships to do so.
A sole trader or partnership creates their dormant company to protect their trading name as well registering that name as a trademark. If for example ‘Trading Name’ and ‘Trading Name Ltd’ both had the same legal owners would the presence of a PSC register demonstrate that the dormant company was not dormant at all but was exerting control over the sole trader or partnership?
What should a responsible practice advise the sole trader to be aware of?
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Replies (3)
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I don't know much about law, but I am pretty sure anyone who "creates their dormant company to protect their trading name as well registering that name as a trademark." fails to understand (a) what a limited company is, an (b) the rudiments of trademarking and what protection is available for 'passing off'.
You are proposing there may be an issue with the company exerting control over the person registered on Companies House as the PSC, despite that person exerting control over the company by virtue of being the PSC.
Dormant companies are dormant by having no transactions or activities, they can have PSCs, that's ok. It's also ok for them to have the same or similar names as the sole trader.
Trademarks are not typically registered by forming companies though and I'm not exactly sure what the intention here is or what the perceived problem in achieving that intention is.