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Company Registration

Is It Worth Registering a Company Name?

FURTHER RESOURCES

This discussion of registering a company name is the first of many topics that are planned for the site. Providing insightful commentary which is beneficial to the public is the objective which we hope will be achieved. Company Registration Online - something different.

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 “trade as” 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 stringent manner.

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.

Conclusions

Before beginning a company registration 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