{"id":1073,"date":"2020-12-10T19:34:50","date_gmt":"2020-12-10T19:34:50","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1073"},"modified":"2023-02-06T18:59:37","modified_gmt":"2023-02-06T05:59:37","slug":"trading-as-business-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/trading-as-business-new-zealand\/","title":{"rendered":"What Does ‘Trading As’ Mean in Business?"},"content":{"rendered":"

When you run a business in New Zealand, it must be <\/span>registered with the NZBN<\/span><\/a> or <\/span>Companies Office<\/span><\/a>. However, you may wish to use a name other than your registered name \u2013 this is known as a trading name. Your trading name is the name your customers recognise your business with. It can become a valuable asset for your business as it gains goodwill and customer recognition. Therefore, it is crucial to take sufficient measures to protect it. This article will discuss what are the benefits of using a trading name for your business and the risks associated with failing to protect it.<\/span><\/p>\n

What Does \u2018Trading As\u2019 Mean?<\/span><\/h2>\n

When you carry out your business operations, you can choose to go by a trading name, which is a name that is different from your <\/span>registered business name<\/span><\/a>. Companies in New Zealand often use this approach, as it can be beneficial for branding reasons. <\/span><\/p>\n

For example, you may initially incorporate your company as Smith & Co Limited, but later on you may decide that you want your customers to know you by Smith & Co Skincare (instead of your registered company name), as this name is more representative of your commercial activities. <\/span><\/p>\n

For clarity, and to avoid potential liability claims as a result of misleading your customers, business documents and communications should acknowledge both the trading name and registered legal name of a company. Using the above as an example, this will typically take the form of \u2018Smith & Co Limited, trading as Smith & Co Skincare\u2019.<\/span><\/p>\n

Trading Name vs Company Name <\/span><\/h2>\n

A company is a legal entity, which can do things like enter into contracts and borrow money. A trading name is not a legal entity on its own, meaning it cannot be a party to any contracts and is instead the name by which customers know the business.  <\/span><\/p>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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