Whether or not it is actually worth the trouble of registering a
company name to protect it is debatable and there are those who would present
both side of the argument energetically.
The following factors might affect the view of whether it is worth the cost and
others resources necessary to maintain it:
Purpose of Registration
The motivation behind the registering
a company name might provide some indication of the usefulness and necessity
of owning the name. If the incorporation is undertaken because it is intended
the trade at some stage in the future under that title then registering the name
might well be worth it.
On the other hand, with only a remote possibility of using the company for a
future trade and if that particular name is not that significant to that
activity, it could be suggested that both the initial and on-going costs do not
justify the registration.
Significance of the Company Name
On the basis that the company could at some stage be used for a
business venture, the relevance of the name to the operations should be
accessed. Most online businesses are known solely by their domain names with the
actual company title provide little or no goodwill to the proceedings.
In addition, given that a business or company can ÃÂtrade asÃÂ something else,
again the importance of the actual company name is diminished.
Costs of Maintaining a Company
In situations where a company name is registered and is left as
dormant, the obligations pertaining to it still remain, albeit, in a less
Dormant companies still have to submit an annual return each year and pay
the £13 filing fee. A DCA Form can be presented in place of full statutory
accounts, but this is still a resource cost.
Form CT41g is also obligatory for dormant company formations as is the
requirements to keep and make available the entities statutory books.
Before beginning a
to secure a name, an assessment of its potential
value versus the set-up and maintenance costs should be made to ensure that the
objectives of incorporation are met.
In today's web based society, the significance of domain names has begun to out
strip the importance of company titles and therefore registering domain names to
protect a corporate identity might appear to be the better investment