| New legislation - Trading as......no more |
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NEW LEGISLATION - TRADING AS…… NO MORE The current practice whereby companies or close corporations trade under names other than their registered names has ceased with the implementation of the Consumer Protection Act, 2008 (CPA). Section 79 of the CPA prohibits any person from carrying on business (which is very widely defined) except under the person’s full name as recorded in an identity document, recognised identification document or registered in terms of public regulation or in the case of a juristic person (e.g. company/close corporation) a business name registered with the Companies and Intellectual Property Registration Office (CIPRO). In other words, a trading name must be the registered name of the entity. The effect of this is that for example, an individual Allan Donald, or a firm of Donald Johnson and Company (Pty) Ltd, will not be allowed to trade as or carry on business as “Sparkle Jewels” unless the name “Sparkle Jewels” has been registered as a business name with CIPRO. Likewise ABC Bank Limited will not be permitted to use the name “ABC Home Loans” for its home loans division without a separate registration of that name with CIPRO. Therefore, the present custom whereby a company or a close corporation which carries on business as Donald Johnson and Company (Pty) Ltd trading as Sparkle Jewels is no longer allowed in terms of the Consumer Protection Act, 2008. In terms of Section 81 of the CPA, a proposed business name may not be identical or similar to an existing name already registered under the Companies and Close Corporations Act. The name may also not be the same as or similar to a registered trademark belonging to another person. In light of the above, all business names need to be registered with CIPRO in order to protect the intellectual rights in respect of registered names and trademarks. Please contact Julie Clacher of our Company Secretarial department for further information and assistance with the above.
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