Corporations must Register Trade Names as Business Names

The amended Registration of Business Names Act, which became effective on September 3, stipulates that all corporations trading in names other than their corporate names, are mandated to register such trade names as business names.
“Whereas the registration of trade names was previously optional, since the amendment, all corporations trading in names other than their corporate names are mandated to register such trade names as business names,” Deputy Chief Executive Officer at the Companies Office of Jamaica (COJ), Shellie Leon emphasised in an interview with JIS News.
Miss Leon indicated that the use of trade names was very common and gave as examples in the marketplace, Western Union, Paymaster, Digicel, Burger King, Kentucky Fried Chicken, Quad, Asylum, Hedonism 11 and Hedonism 111.
Elaborating, she noted that “under the amendments to the Registration of Business Names Act, the definition of firm has been expanded and now includes a corporate body trading in a name other than its corporate name.” The Act, she continued, mandated every firm having a place of business in Jamaica and carrying on business under a name other than its corporate name, to register in the manner directed by the Act.
“Prior to the amendments, if a company wanted to register a trade name, what would have to happen is that the company and an individual would have to join together in partnership and register,” Miss Leon explained.
She pointed out that Liability companies may now register as the sole proprietor of a business without having to register as a partnership as was the case under the previous Registration of Business Names Act.
The procedure, she outlined, involved the company completing a BN1 form with details of the name under which the corporate entity would trade as a business name.
Additionally, “they would also include the nature of business the trade name will be carrying on and as is customary, they would sign under seal with two officers of the company and then the tax registration number of the company would be affixed on the form,” she pointed out.
She also pointed out that “on the business name form would be the detail as to who is authorized to sign on behalf of this company,” adding that this procedure is similar “to when a natural person or individual walks in to register and they complete that BN1 form.”
“Having completed the form, the fee of $2,000 is paid and the certificate will be issued, provided all the relevant information has been accurately given,” Miss Leon said.
Commenting on the present procedure, she noted that it was much simpler, because previously the company was compelled to join with an individual to register the business name.
She pointed out that someone would have to go and join with a limited liability company, which meant being personally exposed, along with their assets, “since the company could not go ahead and register this trade name on their own.”
With the amendments, “whatever liability falls on that business, it is going to be that of the company registered as a sole trader.so no natural or individual person will have to jointly bear that responsibility,” she added.
Miss Leon pointed out that the transition procedure was also simple for companies that registered businesses in the form of a partnership prior to the amendment.
“If such companies would like to terminate such arrangements, all they have to do is close that business by writing a letter to the COJ and complete a form BN6, pay the relevant closure fee of $600, and then they could proceed to register as a sole trader,” she explained.
Miss Leon implored all companies operating in unregistered trade names to register such names as business names, as it was illegal to operate or advertise without such registration.
The amended Registration of Business Names Act is to provide more protection for consumers and also for the proprietors of registered businesses.
For further information on the Registration of Business Names Act, contact the COJ at 908-4417/4427-9 or visit its website at: www.orcjamaica.com.