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Q: Business Name ( Answered 3 out of 5 stars,   3 Comments )
Question  
Subject: Business Name
Category: Business and Money
Asked by: ace007-ga
List Price: $10.00
Posted: 25 Feb 2003 02:46 PST
Expires: 27 Mar 2003 02:46 PST
Question ID: 166791
I want to use the term Plc in a company name without being a Plc is
this possible? How would I go about doing this ? This would be in the
U.K

Request for Question Clarification by answerfinder-ga on 25 Feb 2003 05:31 PST
Dear ace007,
When you say company do mean a limited liability company under the
Companies Act, or a trading name such as John Smith trading as ACME
Plc and where you are personally liable for all debts?
The final decision on a company name lies with Companies House. I can
make a good assessment of their likely decision. Does this suit you
requirement?
Finally, can I confirm that you require information on how to register
a company in the UK? If so, where are you located?
answerfinder-ga

Clarification of Question by ace007-ga on 26 Feb 2003 00:31 PST
The position is not to mis-represent me (I am a sole trader) as a
publicly limited company but to get a concept across. The concept is
of 'You Plc' and the need to treat yourself (The customer) as a
company when running your own career and finances. Therefore I need a
way of using the acronym Plc and it's connotations without being seen
to misrepresent myself.
Answer  
Subject: Re: Business Name
Answered By: answerfinder-ga on 26 Feb 2003 02:33 PST
Rated:3 out of 5 stars
 
Dear ace007-ga 
Thank you for your clarification. It would appear that providing you
are not trading under a name with public limited company  or PLC
forming the last part of its name you can use the letters.  I should
state that I am not a lawyer and if you are unsure about any of the
details, you should read the law yourself or consult a solicitor. I
also draw your attention to terms and conditions of use of Goggle
Answers section 3. http://answers.google.com/answers/termsofservice.html

There are three main types of legal status assumed by a new business.
These are: sole trader, partnership or limited company. Limited
companies can later change to PLC.

First the definition of PLC.  Companies House is the UK Government 
department responsible for the registrations of companies in England
under the various Companies Act. This is part of the definition of PLC
from their web site http://ws5.companieshouse.gov.uk/index.shtml

A public limited company is a company which is registered as such and
complies with the following:
It must state that it is a public limited company both in its
memorandum and in its name and the name must end with 'Public Limited
Company' or 'PLC';
It must have an authorised share capital of at least £50,000;
Before it can start business, it must have allotted shares to the
value of at least £50,000. A quarter of them, £12,500, must be paid
up. Each allotted share must be paid up to at least one quarter of its
nominal value together with the whole of any premium;
There are additional restrictions. Please go to 
http://ws5.companies-house.gov.uk/notes/gbf1.html#two to review them.

I now refer you to Section 33 of the Companies Act 1985 which states:
1. A person who is not a public company is guilty of an offence if he
carries on any trade, profession or business under a name which
includes, as its last part, the words "public limited company" or
their equivalent in Welsh ("cwmni cyfyngedig cyhoeddus").
2. A public company is guilty of an offence if, in circumstances in
which the fact that it is a public company is likely to be material to
any person, it uses a name which may reasonably be expected to give
the impression that it is a private company.

Referred to on the Companies House site but only printed in full at
this site:
http://www.nic.uk/rules/rup1.html
There is a similar offence relating to the use of "limited" – Section
34.

A search of the Companies House database shows there are limited
companies registered using the initials PLC in their names. However,
you will note that there are full stops after each letter. I do not
know what the policy would be if you wished to use for instance, ‘Your
PLC Company Limited’. That is likely to be a decision by Companies
House.
P.L.C. CONTRACTORS LIMITED 
P.L.C. FLATS MANAGEMENT LIMITED

You also have to consider the Business Names Act 1985. There is no
need to register a business unless it is a limited company unless -
"a company which trades under a name which is not its corporate name,
for example, 'XYZ Limited' trading as 'Fish Antiques';
a partnership which does not trade under the names of all the
partners;
an individual who trades under a name which is not his or her
surname."

There are others restrictions and requirements when using a business
name and these are detailed on the Companies House web site.
Restrictions on PLC is not mentioned.
http://ws5.companies-house.gov.uk/notes/gbf3.html#one

I found no other restrictions relating to the use of PLC outside of
the Business Names Act and the Companies Act. Therefore, I would say
that providing you are completely clear in your literature who you are
and who your company is, and that the PLC referred to is not a real
entity under the Companies Act you should be within the law.  However,
once again I refer you to the first paragraph of this research.

I trust this answers you question. Please ask for clarification of any
part of this research, or if the links do not work, before rating the
answer.

answerfinder-ga

Search Strategy
Companies House web site and 
"business names act" plc
://www.google.com/search?hl=en&ie=UTF-8&oe=UTF-8&q=%22business+names+act%22+plc
ace007-ga rated this answer:3 out of 5 stars
Given the obvious legal issues the answer I received has given me
greater clarity and where to go for clarification.

Comments  
Subject: Re: Business Name
From: robertskelton-ga on 25 Feb 2003 04:45 PST
 
Private Limited Company (PLC) means a business registered with
Companies House, whether a PLC or a limited company.
http://inclusion.ngfl.gov.uk/help/definitions/1_4_legal_status.html

All I can suggest is that if you use the term PLC without being
registered, you are being fraudulent.
Subject: Re: Business Name
From: martinjay-ga on 25 Feb 2003 10:30 PST
 
Cannot imagine what this will get you unless
you intend to use it to misrepresent yourself.
The U.S. has some rules regarding using Bank
in names.  When buyers find out that you are
not, they will question your ethics?  Good luck
with whatever you are doing.
Subject: Re: Business Name
From: serenata-ga on 26 Feb 2003 00:41 PST
 
Why not use a phrase like in your clarification?

"Treat Yourself Like a PLC"
"Your Own PLC"
"You Should Be A PLC"
"You As A PLC"
"Your PLC"

or something along that concept?

While it may not be the fanciest name, it will get the point across.

Serenata

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