The Business Names Act - What must I do to comply?

The Business Names Act and Ecommerce Regulations apply to a wide range of business communications

- including letters and emails, orders and invoices

- and information displayed on your website and at your business premises

United Kingdom

When you carry on your business under a trading name -

Do you know what information you are required to show on business communications, emails, your website and at your premises?

Disclosure of owner(s) name(s)

In outline –

Under the Business Names Act all businesses trading under names other than those of their owners must show the owners' names and an address at which documents can be served -

Disclosed in certain business documents issued in the trading name

And displayed at the business premises.

The disclosure rules relate to specific types of documents, namely

Business letters

Purchase orders

Invoices

Receipts

Written demands for payment of business debts.The owner's name(s) and address(es) in Great Britain must be shown on these documents.

It is advisable to show the owners' name and address on emails. There are special legal obligations regarding company emails – see link below.

And thirdly -

When asked for the name and address of the owners, these details must be provided in writing, e.g. on a business card or letterhead.

Read on to find what this means for a sole trader, partnership or limited company when they use trading names.

Websites

The Business Names Act does not specifically require you to publish the name and address of the enterprise on your website as well. However, the Ecommerce Regulations 2002 require certain information about your business to be shown on websites, emails and SMS text messages too.

Ecommerce Regulations

The Electronic Commerce Regulations 2002 apply to all types of ‘commercial communications’ other than a website that simply shows your postal or email address.

In other cases the regulations require that you show on the website:

Who is running it – the name of the website 'service provider'
The geographic or postal address (not a PO number) and email addresses of the service provider
Other details, such as telephone and fax number.

The regulations specify further requirements for direct marketing by email and SMS text and to show the VAT registration number of the business and terms of business, send order acknowledgements, etc.

[The Consumer Protection (Distance Selling) (Amendment) Regulations 2005 also apply to ecommerce websites.]

For limited companies there are specific legal requirements under the Companies Acts applying to business websites and emails too – see link below.

What does this mean for my business?

Click here to learn about the legal position of Sole traders

Or learn about Partnerships

Or about Limited companies

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Footnote
This article is intended to contribute to informed decisions by business owners, directors and managers. It does not constitute professional advice in all individual cases and should not be interpreted as giving specific advice or guidance.

Before making a decision to take any action you should make your own appropriate enquiries and seek legal, financial and other relevant advice from a qualified person or body. See terms of use for further information.

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