Introduction
The aim of trading disclosure legislation is to ensure that anyone who has dealings with you and your company knows its legal identity, its status and where they can inspect the company records.
The law requires that certain details are:
- Displayed at specified locations.
- Set out on documents and communications.
- Given at the request of those that you do business with.
Failure to comply with trading disclosure laws may constitute both a civil and criminal offence and could render the company and every officer who is in default liable to a fine.
Disclosure by Companies
The table below summarises what must be displayed by a company and where:
DISCLOSURE/INFORMATION | LOCATION |
Registered Name |
Property
|
Communications
The above requirements apply whether such documents are in hard copy, electronic or any other form. |
|
The
following information must also be included in all documents listed
opposite:
|
|
Company
Records Your company must, within five working days, respond to written queries from any person it deals with in the course of business informing them where its company records can be inspected. |
Disclosure by Individuals and Partnerships
The table below summarise what must be displayed by a sole trader or partnership and where:
Sole Trader or Partnership < 20 Members
DISCLOSURE/INFORMATION | LOCATION |
|
Property
|
The rules are not the same for large partnerships of over 20 partners.
Conclusion
The above tables set out the trading disclosure positions which will be most relevant to start-ups. The rules applicable to trading disclosures are often more complicated and can change depending on the type of company (such as charitable companies, investment companies, insolvent companies and limited liability partnerships). If in any doubt you should seek advice.
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.