Can a company entering into a contract use its trade name and not its registered name?  English companies will have been incorporated with one name at law but often have a different business or trading name. Abigail Owen, Corporate Partner at Rawlison Butler, considers whether a company can enter into a legally binding contract with its business or trading name rather than its registered name.

A company may have more than one business or trading name, for example, for different business divisions. This trade name is often different though from the name with which the company was registered with at law. However, it is important to remember that, although a contract can be made orally or by conduct, where it is made in writing, it must include its registered name in that contract. What happens then where a contract is entered into and the only name mentioned is the trade or business name? The contract will still be legally enforceable, provided that the use of the business name does not create any confusion as to the identity of the party in question and providing all other elements of a contract are present.

1. always include the company's registered number in all written contracts. It is the only thing which identifies a company and never changes.

2. be aware that, although a business or trading name is not registered at law, there are still legal requirements that you must comply with (for example, not using a restricted, prohibited or sensitive name).

3. in a written contract, if you are referring to a company by its business or trade name, the following information should also be included: [Registered name of the company] (trading as [Business name]), with registered number.........., whose registered offices is at............

4. the law states that a company must disclose its registered name in:

  • business letters, notices and other official publications;

  • bills of exchange, promissory notes, endorsements and order forms;
  • cheques and orders for money, goods or services signed by or on behalf of the company;

  • bills of parcels, invoices and other demands for payment, receipts and letters of credit;

  • applications for licences to carry on a trade or activity;

  • all other forms of business correspondence and documentation; and

  • its websites.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.