Dormant Company status. Registering trademarks

Would registering trademarks with a dormant company count as "significant transactions"?

Didn't find your answer?

Hi.

This is my forst question here so please be kind :) Excuse me if I have submitted to the incorrect category.

I've searched all over and not had any luck with research I don't have an accountant as my newly registered company is dormant and will probably remain so for the intial acounting year.

The company has no business transactions, no clients, no suppliers it is truely dormant.

Ahead of trading I wish to register some trademarks which take months to go through. Would registering such trademarks to the company and putting the charges through the books count as what HMRC describe as "significant transactions" and change the dormant staus of the company and the type of accounts that will be required year end?

Thanks in advance for any advice on this matter.

Replies (11)

Please login or register to join the discussion.

John Toon
By John Toon
31st Jan 2024 16:27

Yes

Thanks (0)
Replying to johnt27:
avatar
By FactChecker
31st Jan 2024 17:40

But note (OP) that 'dormant' will have a defined meaning - which is different under different regulations (for instance see Companies House vs HMRC approaches).

Also, if you're considering "registering some trademarks which take months to go through" ... then I'd take more general professional advice first.
It can cost quite a lot (as well as the time factor), and there are pros and cons with regard to whether they are held in a company or personally, so you should really work out your plans before worrying about things like accounts/tax returns.

Thanks (2)
Stepurhan
By stepurhan
31st Jan 2024 22:09

Application to register a trademark has a cost (£170 for a UK trademark applied for online). That cost has to "go through the books" of the company if the trademark is in the company name. Why would you think that was not a significant transaction?

A quick heads up. You are asking for free advice on a forum that is meant for accountants. A request to "be kind" is not worth much when the forums are inundated with "first question" requests for free advice on a daily basis. How kind people are is likely to depend on how ready you are to accept answers that you might not want.

Thanks (2)
Replying to stepurhan:
avatar
By KarlJacobs
02nd Feb 2024 11:13

stepurhan wrote:
How kind people are is likely to depend on how ready you are to accept answers that you might not want.

Not sure how people could assess how kind to be to someone based on how information will be received ahead of time. Thanks for your reply anyway I'll take it into consideration.

Thanks (0)
Replying to KarlJacobs:
Stepurhan
By stepurhan
02nd Feb 2024 12:00

They will be a general level of kind in their initial responses and your request won't change that (may even make some respond less kindly because they object to being told how to respond, however politely).

Ongoing kindness is based on further responses. A lot of people get really aggressive when they get answers they don't like. They view any response not keeping exactly with their own views as "unkind". You are avoiding doing that, which makes it more likely you will get continue to get good responses in future. Those still are likely to be "get an accountant" more often than not though.

Thanks (0)
Avatar
By I'msorryIhaven'taclue
01st Feb 2024 14:08

KarlJacobs wrote:

Hi.

Ahead of trading I wish to register some trademarks which take months to go through. Would registering such trademarks to the company and putting the charges through the books count as what HMRC describe as "significant transactions" and change the dormant status of the company and the type of accounts that will be required year end?

Thanks in advance for any advice on this matter.

Have you thought about applying for and owning the TM s in your own name? That way you'd be able to start a phoenix company when yours goes belly-up, without losing the TM.

Thanks (1)
Replying to I'msorryIhaven'taclue:
Melchett
By thestudyman
02nd Feb 2024 08:16

That would be a good idea to keep the trademark in their own name. To make some commercial sense they would (in return for a payment) allow the company a license to use the trademark.

However this would also create accounting entries and this would not fit in the requirements of a dormant company for Companies House purposes!

Thanks (1)
Replying to thestudyman:
Stepurhan
By stepurhan
02nd Feb 2024 08:22

It would delay the need for accounting entries until the company needed to use the trademark. Register the trademark in the company, and you need to make accounting entries immediately. Register it in your own name and you only need to make accounting entries when the company becomes active.

Thanks (1)
Replying to thestudyman:
Avatar
By I'msorryIhaven'taclue
02nd Feb 2024 08:26

Good point... I guess the workaround would be not to charge the company in the first year. (The OP stated he wants that company to be dormant during its first year viz: "my newly registered company is dormant and will probably remain so for the intial acounting year.")

OP, we're assuming you intend to use this TM for your own (company's) purposes. If you're any sort of dealer in TMs then your trademark would amount to stock. Just covering all bases.

Thanks (1)
Replying to I'msorryIhaven'taclue:
avatar
By FactChecker
02nd Feb 2024 11:23

I said a couple of days ago: OP "should really work out your plans before worrying about things like accounts/tax returns".
As it stands, I have no idea of their plans so am unable to (speculatively) comment.

Thanks (2)
Replying to FactChecker:
Avatar
By I'msorryIhaven'taclue
02nd Feb 2024 12:12

Yes you did, and I too am still shooting in the dark.

The OP's a nice chap, but terribly optimistic in thinking a TM application can be processed that quickly. The company may well be trading before the TM is granted, esp if the application is DIY and scantily presented.

Thanks (0)