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

  • Registered office.
  • Any location where records are available for inspection.
  • Any location in which your business carries on its business.
Communications

  • 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.
  • Your business website (though not necessarily on every page).

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:

  • The part of the UK in which your business is registered.
  • The company's registered number.
  • The company's registered office.
  • In the case of a limited company exempt from the obligation to use the word "limited" as part of its name, the fact that it is a limited company.
Additional information which might be required:

  • Where a company's business letter includes the name of a director of that company, other than in the text or as a signatory, the letter must disclose the name of every director of that company.
  • Business Letters.
  • Order Forms.
  • Websites.
Whether they are in hard copy, electronic or take any other form.
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
  • Name / Name of each member
  • Address for service
 Property

  • Any premises where the business is carried on and to which customers and suppliers have access.
Communications

  • Business letters.
  • Written orders for goods and services to your business.
  • Invoices and receipts issued in the course of business.
  • Written demands for payment arising in the course of business.

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.