Every business is mandated to register a business name, whether they are a sole trader, a partnership or any other company type.
Sole trader/Partnership
Quite a number of entrepreneurs who start businesses usually prefer running the business as a sole trading entity or to share the vast responsibility that comes with running a successful business with a partner. Business statutory by-laws require the sole trader or partnership entity to comply with the business name registration process which is facilitated by the companies registration office.
Unlike incorporated companies sole traders and partnerships' business names are not afforded protection, this means that another entity can register their business with virtually the same name that another entity registered with.
A sole trader or partnership entity's liability and asset fixation is directly tied to the business owner(s). All business decisions both at strategic and operational level are made by the owner's. The business owners' assets become part of the entity's assets since the owner and the business are one legal entity.
Sole trader and partnership business name registration is only availed to Irish residents, hence to register as sole trader substantial documentation and records that prove that you are an Irish resident should be provided. To register a sole trader or partnership if one is not an EU national, it is vital to acquire a stamped letter of business permission which can only be granted by the department of justice.
Limited liability companies.
Whenever a limited company wishes to register a business name, a thorough search of the business name registry database is conducted in order to avoid duplication of already existing business names. Each business name registered under the Companies Act of 2014 is guaranteed protection from duplication by another entity. Limited companies and the owners are considered as two separate legal entities. This generally means the assets of the individuals are not tied to the company.
To set up a limited company it is essential to have a directing board which generally makes the strategic and tactical decisions in the entity. The owner can be part of the managing board or he could decide to relinquish all managing rights with preference to just holding major shares in a business stake, hence individual accountability in a limited company is unprecedented.
The Companies Act does not restrict incorporated entities from engaging into numerous activities. This feature would require for a business to register a business name for each subsidiary activity in order to show clear demarcations separating each service provided by the business on a common market. This also ensures book keeping records showing business transactions can be separated accordingly for audit accountability purposes.
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