Business Finance & Funding FAQ’s

What finance is available to me if I haven’t started trading? 

Start Up Loans are government backed loans where the borrower/s can each borrow up to £25,000 to a maximum of £100,000 for any one business at a Fixed Interest Rate of 6% Start Up Loans – click here to find out more.

What funding can I access if I have been trading for 6 months, 1 year, 2+ years? 

There are lots of options ranging from High Street banks to Alternative providers (i.e. Responsible Finance providers) to Asset-backed lenders (Invoice & Equipment finance specialists).

What key business documents do I need when applying for trading? 

Annual Statutory Accounts, Management Accounts, Profit and Loss Account, Balance Sheet, Cash Flow forecast and Personal Assets & Liabilities Statement.

Who should I go to first when looking for a business loan/access to finance? 

If you have been trading for more than 6 months, try your local Growth Hub – they are a great centralised place to receive connections to finance providers from. Alternatively, give us a call at Start.Biz.

If I get turned down by high street banks for a business loan is there any alternatives? 

There are lots of alternatives. A good place to start would be to look for local Responsible Finance providers who often offer the required level of finance whilst also appreciating the need for SME Business Owners to get decisions on funding quickly. Click here to find out who provides responsible finance in your area.

How much can I borrow? 

This will depend on a number of variables:
i) The level of profitability currently within the business and moving forwards is critical. The more profitable you are, the more likely you are to get higher levels of finance.
ii) Whether the Business Owner is offering a Personal Guarantee to secure the loan
iii) The quantum of investment that the Business Owner is putting in

Can I get a grant? 

Yes but this will be dependent upon the criteria of each individual grant. A good place to start would be to sign up The Innovation Factory’s (Drew Currie) monthly newsletter, click here to sign up for free.

Can I get a project funded? 

Possibly but a bit like Grants, it is entirely dependent on the funding resource in the market at that time. Innovate UK offers Loans and Grants with a focus on business’ growing via Innovation, find out more here.

What kind of business activity can I get finance for? 

You can apply for finance for a multitude of activities including:
– Business acquisition/merger
– Asset purchase
– Invoice Finance
– Refinance
– Working Capital/Cash Flow

Are there still any covid recovery schemes available? 

The Recovery Loan Scheme (RLS) is available until 30th June 2022

What is a good interest rate? 

The Interest Rate applied is often directly linked to the perceived level of risk with the loan itself. High Street lenders will lend at 3% + the Bank England’s base rate of lending. Currently, SMEs are finding it harder and harder to access funding at these rates via the High Street. Rates for SME’s can range from as little as 6% right up to 14%. Sometimes the easiest thing to do is secure finance at a higher level of interest to get the required funding before then refinancing at a later date at a better rate of interest.

If you have any questions about financing your business or would like to discuss your personal circumstances, please contact our expert team today. 

Access to Finance Consultation Line: 0800 069 9090 (freephone) or email finance@start.biz 

Registered Design FAQ’s

WHAT CAN BE A REGISTERED DESIGN? 

A registered design can be the particular look, shape, configuration or ornamentation of a product(s).

DO I NEED TO REGISTERED DESIGN? 

This depends on if you have something unique that you would like to protect. A registered design may become essential to your business in the future and save a lot of headaches down the road. If you are unsure regarding anything to do with registered designs our expert team with over 30 years’ brand protection experience are on hand to advise. Call us on 0800 069 9090 or drop us an email to mitch@start.biz to find out more.

ARE ALL REGISTERED DESIGNS REGISTERABLE? 

No, a registered design will not be accepted if it is not distinctive enough. We will advise in our report ways in which you can make your design more distinctive and help you with your application.

IS A REGISTERED DESIGN EFFECTIVE WORLDWIDE? 

No, a registered design is only effective in the country where the design is registered. However, there are several International Conventions that exist which assists clients who wish to register a design in more than one country with one single application which are more cost effective than obtaining separate national registrations.

HOW IMPORTANT ARE REGISTERED DESIGN CLEARANCE SEARCHES? 

Registered design novelty searches are particularly important as they are the first step to determining whether the design you wish to use, and register is available to do so. We strongly recommend that, to avoid any potential conflict between your proposed design and any existing confusingly similar designs, that you instruct us to carry out a comprehensive registered design search on your behalf.

CAN I AMEND MY REGISTERED DESIGN AFTER SUBMISSION? 

No, once an application has been submitted it cannot be altered except for the owner’s name and address. It is important your application is as accurate as possible.

HOW LONG DOES IT TAKE TO OBTAIN A DESIGN REGISTERED IN THE UK? 

The initial registration process takes around 2-3 months to complete.

HOW LONG DOES A DESIGN REGISTRATION LAST? 

A registered design is renewable every 5 years for a maximum registration period of 25 years.

HOW MUCH DOES A REGISTERED DESIGN COST? 

The application fee is dependent on the number of designs included in one application. For example, it is possible to file a multi-design application in the United Kingdom. A UK design application containing one design costs £300; a UK multi-design application containing up to 10 designs costs £550 and UK multi-design application containing up to 20 designs costs £750.

How to Start a Business (Limited Company)

8 steps to set up your limited company 

These steps will ensure you are compliant and correctly set up with the UK government as a limited company. You can operate as a sole trader which just requires you to register differently with HRMC.

1. Decide if forming a limited company is right got you 

Advantages of setting up as a limited company include; limitation of personal liability, professional status, beneficial tax efficiency and planning. However, drawbacks include; needing to do a more administration, publish your personal details publicly and you will have legal accounting requirements as a limited company. If you are looking to commit to a full-time, more professional venture that you will invest substantial time and effort in growing forming a limited company is a great option.

2. Register your business 

There are several steps to registering your business officially with the government, for advice and help with the process you can use a formation agent. They will save you time, money and stress so you can get to the fun part of running your new company! National Business Register have over 35 years experience forming companies, read more about their services here. You will need to decide on the name of your company, who and how many directors you will have and how many shares each director will have.

3. Employing someone as a limited business 

You will need to pay income tax and National Insurance contributions for each employee so will need to set up a PAYE. This government resource is a good directory for what you will need to cover if you have employees, it also takes you to details regarding your tax self assessment form – get bookmarking!
In terms of employment law – know your basics. A great site for basic legal documents is Rocket Lawyer.
ACAS is a goldmine of informative articles on everything from employment law to workplace Covid advice.
If you’re looking to contact a solicitor our accredited partners, Thursfields have the experience and legal expertise to guide you throughout the life cycle of your business. Read more here.

4. Get an accountant 

It is advisable you get an accountant as a limited business. You are legally required to submit yearly accounts to HRMC alongside your self-assessment forms and Confirmation Statements. Ask friends, fellow business owners and find out more about our accredited accounting partner, Stewart Associates, here.
Remember to keep organised and maintain detailed financial records of everything to do with your business. It may be boring and the last thing you want to do at the end of a busy day but future you (and your accountant!) will love you for doing it. Download your accounting software to your phone to keep organised even on the go.

5. Do you need to register for VAT? 

If your businesses turnover exceeds £85,000 per annum you have to be VAT registered, register here. If you are under this threshold registering is an extra process however it does mean you can claim VAT back on goods and services you use for your business. If you are setting up as a limited company you are probably quite serious about making a go of your business so if you don’t register for VAT (which gives you the ability to claim VAT back on items purchased for your business) you are effectively paying 20% more than you should for anything that includes VAT (which is most things). Just remember to keep those receipts!

6. Understand your tax 

Tax is one of the main factors that sway people to form a limited business. As a sole trader you can pay between 20%-45% tax on your profits whereas a director of a limited company will pay 19%. However don’t go mad spending 81% of your profits, there are other costs, especially with employees (see point 3) limited companies are responsible for. This is where having an accountant comes in really handy. Also having accounting software such as Xero, QuickBooks or Sage will keep things organised on the go.

7. What insurance do I need? 

There are legal requirements for insurance but this decision is also influenced by the type of business you have and how much ‘peace of mind’ you want to pay for. We’ve outlined a few basic forms of insurance below to get you started.
Employers Liability Insurance – this is the only legally required form of insurance for a small business owner. This is to cover any employees that are injured whilst working for you. If you operate with no insurance and have staff working for you, there can be a penalty of £2,500 per day.
Management Liability Insurance (Directors’ and Officers’ Liability Insurance) – this covers the individual directors personally rather than the business as a whole. This can be helpful if things do go wrong as directors are open to having claims of malpractice brought against them with potential fines, disqualification (this will mean you won’t be able to be a director of a future company) and even prison sentences. When taking out this insurance check your policy covers insolvency and large shareholders (over 15%) as many policies do not protect you in these cases.
Public Liability Insurance – this is to cover customer injury. Accidents do happen and not having this insurance if you have a shop/salon etc could be costly. Also note some clients and suppliers may request you have this insurance as part of your contract with them.
Contents and Portable Equipment Insurance – this covers all the technology and physical belongings you use to operate your business. If you are running your business from home and have contents insurance it’s worth checking the wording of your policy as some do not cover equipment used in a commercial capacity.
Professional Indemnity Insurance – this is for businesses that offer advice or consultancy services. This insurance will cover you if a client of yours makes a claim against you stating they have incurred financial loss after acting on your advice. In these industries clients may insist you have this form of insurance and it will help bolster your professional reputation if you do.
Cyber insurance – this will insure you against any claims made if you have a data breach. You should consider this insurance if you hold large amounts of customers data and/or sensitive customer data. This may become more important as you grow and will be valuable to have as you build the data on your customers to optimise your marketing strategy and potentially increase your product/service offering.

8. What are your responsibilities as director? 

The term director does come with some legal responsibilities. Alongside ensuring your business is compliant e.g. has licenses with the local authority and/or the correct insurance for your employees there are some actions you will need to do.
Ensure your corporation tax is paid
File annual accounts with HRMC
Write the companies ‘articles of association’ when you form the company and then follow them. These can be updated after registering
Keep detailed company records and report any changes in a timely manner
Notify other shareholders if there is a possible conflict of interest where you will personally benefit from a purchase the business makes
If you follow these steps you will have a compliant and solid foundation from which to grow your business. If you’re still unsure, we’ve outlined the main differences between being a sole trader vs limited company for you. Alternatively if you’ve decided becoming a sole trader is the best option for you read our guide on how to set up as a sole trader here.

How to Start a Business (Sole Trader)

7 steps to set up your business as a sole trader 

These steps will ensure you are compliant and correctly set up with the UK government

1. Decide if being a sole trader is the right set up for you 

76% of businesses in the UK are sole traders and this is how many people setup. Advantages to being a sole trader include; keeping things simple in terms of administration, you can employ people and it’s a relatively straight forward process with HRMC. However, there are also draw backs; you will be personally liable for any debts the business incurs and will have limited access to external finance options. If you are just starting out and are setting up a low-cost business becoming a sole trader is a great option.

2. Register with HRMC 

Once you have decided you are going to operate as a sole trader you will need to let HRMC know by registering for a self-assessment tax. HRMC will then send you a letter with your 10 digital Unique Taxpayer Reference (UTR) which will allow you to go online and set up your account.
If you have done a tax return online before grab you UTR (unique taxpayer reference) and fill out this form – CWF1. If you’ve forgotten your UTR find it here.
If you have a business that you run alongside being employed by another company it is still worth looking into whether you should register. The Gov website has a test page here. Alternatively speak to an accountant for advice, more on that later.

3. What to do if you employ someone as a sole trader 

A common misconception of being a sole trader is that you can’t employ people however as long as you have the correct set up you can. You will need to pay income tax and National Insurance contributions for each employee so will need to set up a PAYE. You will need to pay income tax and National Insurance contributions for each employee so will need to set up a PAYE. This government resource is a good directory for what you will need to cover if you have employees, it also takes you to details regarding your tax self assessment form – get bookmarking!
In terms of employment law – know your basics. A great site for basic legal documents is Rocket Lawyer.
ACAS is a goldmine of informative articles on everything from employment law to workplace Covid advice.
If you’re looking to contact a solicitor our accredited partners, Thursfields have the experience and legal expertise to guide you throughout the life cycle of your business. Read more here.

4. Get an accountant 

You can do your books yourself however unless you particularly enjoy this aspect of running your business getting an accountant is not only a good idea, it’s essential. When you are just starting out and trying to keep costs low it may seem like an unnessccery outgoing however if you make a mistake, file something incorrectly or just miss something from HRMC having an accountant is a life saver. Ask friends, fellow business owners and find out more about our accredited accounting partner, Stewart Associates, here.
Remember to keep organised and maintain detailed financial records of everything to do with your business. It may be boring and the last thing you want to do at the end of a busy day but future you (and your accountant!) will love you for doing it. Download accounting software to your phone to keep organised even on the go – Xero, QuickBooks and Sage are all popular and user friendly solutions.

5. Do you need to register for VAT? 

If your businesses turnover exceeds £85,000 per annum you have to be VAT registered – register here. If you are under this threshold registering is an extra process however it does mean you can claim VAT back on goods and services you use for your business. Don’t forget to keep those receipts!

6. Understand your tax 

This is where the accountant will come in useful however a good rule of thumb is put aside 25% of your income. Don’t touch this until the end of the financial year (sole traders need to pay their tax for the previous year by the 31st January every year) and you should be golden. Alongside your income tax you will have to pay National Insurance Contributions throughout the year. Here are the thresholds
Annual profits below £9,568 (2021/22) = £3.05 per week.
Annual profits between £9,568 and £50,270 = 9%
Annual profits over £50,270 = 2%

7. What insurance do you need? 

There are legal requirements for insurance but this decision is also influenced by the type of business you have and how much ‘peace of mind’ you want to pay for. We’ve outlined a few basic forms of insurance below to get you started.
Employers Liability Insurance – this is the only legally required form of insurance for a small business owner. This is to cover any employees that are injured whilst working for you. If you operate with no insurance and have staff working for you, there can be a penalty of £2,500 per day.
Management Liability Insurance (Directors’ and Officers’ Liability Insurance) – this covers the individual directors personally rather than the business as a whole. This can be helpful if things do go wrong as directors are open to having claims of malpractice brought against them with potential fines, disqualification (this will mean you won’t be able to be a director of a future company) and even prison sentences. When taking out this insurance check your policy covers insolvency and large shareholders (over 15%) as many policies do not protect you in these cases.
Public Liability Insurance – this is to cover customer injury. Accidents do happen and not having this insurance if you have a shop/salon etc could be costly. Also note some clients and suppliers may request you have this insurance as part of your contract with them.
Contents and Portable Equipment Insurance – this covers all the technology and physical belongings you use to operate your business. If you are running your business from home and have contents insurance it’s worth checking the wording of your policy as some do not cover equipment used in a commercial capacity.
Professional Indemnity Insurance – this is for businesses that offer advice or consultancy services. This insurance will cover you if a client of yours makes a claim against you stating they have incurred financial loss after acting on your advice. In these industries clients may insist you have this form of insurance and it will help bolster your professional reputation if you do.
Cyber insurance – this will insure you against any claims made if you have a data breach. You should consider this insurance if you hold large amounts of customers data and/or sensitive customer data. This may become more important as you grow and will be valuable to have as you build the data on your customers to optimise your marketing strategy and potentially increase your product/service offering.
If you follow these steps you will have a compliant and solid foundation from which to grow your business. If you’re still unsure, we’ve outlined the main differences between being a sole trader vs limited company for you. Alternatively if you’ve decided forming a limited company is the best option for you read our checklist on how to set up a limited company.

Sole Trader vs Limited Company

What are the pros and cons of setting up as a Sole Trader vs a Limited Company? 

We’ve gone through the basic considerations for both and directly compared them so you can get a clearer picture on which is best for you. Areas to consider when setting up your business include:
Financial Liability
Status & Professionalism
Finance Options
Publishing Personal Details
Business Name Protection
Tax Requirements
Administration Requirements
Employment
Insurance
Sole Trader 
Limited Company 
Financial Liability 
If your business runs up any debt you are legally required to cover it, this may mean even selling personal assets.
Financial Liability 
By setting up a limited company your business becomes a separate legal entity. Therefore if the business does run up debts the business, rather than you personally, are responsible.
Status 
You can build a great reputation as a sole trader and many customers won’t know the legal ‘status’ of your business or, to be honest, care! They are there for your amazing products and service after all.
Status 
Having said that, some suppliers & clients may feel more secure dealing with a company that has gone through the formation process. Once you get larger and becoming more prominent it may be time to form a limited company.
Finance Options 
Along with being financially liable for the business, raising funds may be more difficult. Options as a sole trader include; savings, friends & family lending, go fund me pages, and some banks will loan you money however you may be considered too ‘high risk’ and refused. But if your over-heads are low and your cash flow good this may not be a concern for you.
Finance Options 
You will have more financial options open to you and be more likely to be approved for a loan from a bank or lending organisation. All the options of a sole trader will be available to you along with more official routes. If you need a premises to operate from, need to buy equipment or require some start-up cash to get you going forming a limited company will make it easier when applying for finance.
Personal Details 
Increased privacy. Your personal details won’t be published on Companies House.
Personal Details 
You will have to publish your name (as a director), the names of fellow directors and your business address on Companies House. You can limit the amount of information out there by registering with a secretarial business service eg business address but some details have to be made public.
The Name of Your Business 
Business name protection. As a sole trader you may be worried about others operating with a similar name to take advantage of your good reputation, advertising efforts and word of mouth promotion from customers. You can take out Business Name Protection here with NBR to stop this from happening.
The Name of Your Business 
No one can use the exact same business name as you, they legally won’t be able to form the company. However this doesn’t cover you in every situation, they could add an ‘s’ to the name or ‘solutions’ etc so their name ends up being very similar to yours. You can take out business name protection to stop this, find out more here.
Tax 
Tax can be substantially higher for sole traders, especially when you’ve established the business and are pulling in a good amount of money. Sole traders can be charged between 20%-45% tax on their profits (minus allowable business expenses).
Tax 
Tax for limited companies is lower and they are generally considered more ‘tax efficient’. They are required to pay only 19% on their total profits (minus allowable business expenses).
Administration Requirements 
There is less paperwork to do as a sole trader. You will still want to have an accountant but in terms of legally required documentation there’s less than a limited business.
Administration Requirements 
More paperwork to do with legal annual documentation having to be submitted. As with being a sole trader getting an accountant is a great idea, they will be able to help you with all the paperwork and requirements.
Employment 
You can employee people as a sole trader. Make sure you have insurance and are set up correctly with a PAYE scheme and pensions with HRMC. This is were an accountant will come in handy.
Employment 
As with a sole trader you need to set up a PAYE scheme with HRMC for any employees you have and take out the right insurance to cover them.
Insurance 
As a sole trader you are less likely to have to need different kinds of insurance but check out our ‘Sole Trader’ article where we outline the basic forms of insurance to consider.
Insurance 
As a limited company you may want to take out insurance. We have covered the basic forms of insurance in our ‘Limited Company’ article. One to particularly consider, as a limited company, is individual director insurance.
We hope our battle of the businesses has helped you make the decision which is best for you. Remember the hardest part is taking the first step, get out there, even if everything isn’t perfect and try!
Start.Biz have packages to suit any size and type of business. Get in touch here with our friendly, expert team today to discuss your personal circumstances and set up a solid infrastructure for your business.

Domains FAQ

AM I ALREADY PROTECTED ON THE INTERNET IF I HAVE A BUSINESS NAME OR A LIMITED COMPANY? 

No, the Internet is totally separate in this regard. The only way to protect your interest is to register a domain name, effectively taking it off the market. Domain names are registered on a ‘first come first served’ basis.

HOW MUCH WILL A DOMAIN NAME COST ME? 

All domain names and access to NBR’s website support service is £30 per annum.

HOW DO I RENEW MY DOMAIN SERVICE? 

Follow this link for our online renewal form.

WHO WILL OWN THE DOMAIN NAME? 

You will be the owner of the domain name as long as you pay the annual fees.

WHAT IF I NEED MORE THAN 5 EMAILS? 

You can purchase more emails at any time in sets of 5 for £15 per bundle.

CAN I PURCHASE MORE WEB PAGES? 

Yes, further web pages can be purchased for £5 per page per quarter.

CAN I SET UP AN ONLINE SHOP? 

Yes, we can offer a shopping facility whereby payments can be received through your website.

WHO WILL DESIGN MY WEBSITE? 

We will design your website for you, but you will have access to your website via a control panel if you wish to edit it in the future or we can edit it for you.

HOW DO I CONTACT YOU REGARDING ANY ISSUES WITH MY DOMAIN, WEBSITE OR EMAILS? 

If you have any queries, questions or complaints regarding any of our services, please contact us via info@start.biz or by calling freephone 0800 069 9090. We will respond to you within 2 business days.

Trade Mark FAQs

WHAT CAN BE A TRADE MARK? 

A Trade Mark can consist of words (including personal names), designs, letters, numerals or the shape of goods or their packaging, sounds or smells.

DO I NEED A TRADE MARK? 

This depends on if you have something unique that you would like to protect. A trade mark may become essential to your business in the future and save a lot of headaches down the road. If you are unsure regarding anything to do with trade marks our expert team with over 35 years’ experience are on hand to advise, read more about our IP services here.

ARE ALL TRADE MARKS REGISTERABLE? 

No, a trade mark will not be accepted for registration if it is not distinctive enough. We will advise in our report ways in which you can make your trade mark more distinctive and help you with your application. However, in the case that a trade mark which is not distinctive may be accepted for registration if it can be shown that the trade mark had acquired a distinctive character because it had been in use for over 5 years. We are on hand to guide you through these requirements and make the process simple for you.

WHAT CLASS DOES TRADE MARK BELONG TO? 

It is important to find out the correct class for your trade mark when applying. A new application will have to be made if you apply using the incorrect class. Trade marks can have more than one class and each additional class applied for has a charge of £100 plus VAT. Feel free to contact us and our team will be able to advise which classes apply to your trade mark.

HOW LONG DOES A TRADE MARK REGISTRATION LAST? 

A trade mark registration is renewable every 10 years and therefore can last indefinitely if the registration is renewed.

IS A TRADE MARK REGISTRATION EFFECTIVE WORLDWIDE? 

No, a trade mark is only effective in the country where the trade mark is registered. However, there are several International Conventions that exist which assists clients who wish to register a trade mark in more than one country with one single application which are more cost effective than obtaining separate national registrations.

HOW IMPORTANT ARE TRADE MARK CLEARANCE SEARCHES? 

Trade mark clearance searches are particularly important as they are the first step to determining whether the trade mark you wish to use, and register is available to do so.
We strongly recommend that, to avoid any potential conflict between your proposed trade mark and any existing confusingly similar trade marks, that you instruct us to carry out a comprehensive trade mark search on your behalf.

CAN I AMEND MY TRADE MARK OR ADD FURTHER GOODS OR SERVICES TO THE TRADE MARK REGISTRATION? 

No, once a trade mark has been accepted for registration it cannot be altered except for the owner’s name and address, a fresh registration will need to be made for any amendments.

HOW LONG DOES IT TAKE TO OBTAIN A TRADE MARK REGISTRATION IN THE UK? 

The procedure for obtaining a trade mark registration in the United Kingdom usually takes approximately 6 months. Registration is effective from the date of application.

HOW DO I KNOW WHETHER MY PARTICULAR TRADE MARK IS ALREADY IN USE? 

Before an application is placed to register your proposed trade mark you must ensure your mark will not conflict with any existing trade mark. Furthermore, you should also ensure that there is no existing common law trade marks, or in other words, unregistered trade marks, limited companies, business names and any reference to your proposed trade mark on the Internet. Therefore, we offer two levels of trade mark searching:
Identical search -This search will act as an indication to whether your proposed trade mark is available or is registered by someone else. The fee is £80 + VAT.
Identical and availability search -This search should be conducted if it is your intention to obtain a trade mark registration. We will give comprehensive advice concerning the results of the searches, and advice if the mark can go forward for registration. The fee is £150.
Find out more about all of the National Business Register’s Trade Mark services here.

HOW MUCH DOES A TRADE MARK COST? 

Our basic search is £80 plus VAT and our search and acceptance report is £150 plus VAT, which will advise you if the trade mark you submit is likely to be accepted for registration.
Once it has been established your proposed trade mark is available for use, it can be applied for at the UK Trade mark Office. Our trade mark agents will follow through the entire process and obtain registration within 6 months, please note your trademark is valid from the day of application though. The cost to place an application on file to register a trademark in the UK is £375 plus VAT for one class, any additional classes are charged at £100 plus VAT each.

What is Registered Design?

All aspects of Intellectual Property are extremely important to the value, investment and reputation of a business, none more so than Registered Design protection. A Registered Design protects the appearance, physical shape, configuration and the decoration of products whereas trade mark registration protects the names of your products or brands.

Benefits of Registered Design 

A Registered Design gives you the right to prevent others from using it, it is an exclusive right and therefore the best form of protecting a design.
A Registered Design makes taking legal action against infringement and copying more straightforward which is more likely to result in a more cost effective and successful litigation action.
Once registered you can display your registration number of your design which will also act as a deterrent to potential copiers.

Criteria 

A design qualifies for registration if:
It is new. A design must be ‘new’ at the time of filing. Subsequently, if the design has been disclosed or made public (other than by the designer, see below exception) prior to filing or if the design is not materially different to another design that has already been made public then the validity of the Registered Design can be attacked which, if successful, would result in the cancellation of the Registered Design.
One important exception to the above is that if the prior disclosures of a design is made by its designer, or in consequence of a disclosure made by the designer, within 12 months before the filing date (or priority date, if applicable) of the application then this cannot render the Registered Design invalid by a third party. If the designer made the design public more than 12 months after the filing of the application then the Registered Design can be declared invalid.
However, such disclosures may prevent registering the design in foreign countries, especially outside the European Union, as many countries in the world do not allow such a grace period, or allow a shorter period.
The above provisions do not exclude disclosures made independently of the designer during this period, and therefore applications should be filed before the design is disclosed if possible.
However, even a design that meets the above criteria can be refused registration for the following reasons:
• It is offensive (for example feature graphic images or words)
• It is not your own intellectual property
• It makes use of protected emblems or flags (for example the Olympic rings or the Royal Crown)
• A design registration cannot protect features of a design which are solely dictated by the product’s technical function

Duration 

A Registered Design gives you the right to prevent others from using it for up to 25 years – you have to renew the Registered Design every 5 years.

Application process 

We specialise in all aspects of design registration from conducting initial searches on the Designs Register to assessing any potential infringement issues and novelty issues against earlier Registered Designs through to the registration of the design. We can also represent you and offer advice in relation to any invalidity claims filed against your Registered Design as well as conducting frequent ‘watching’ searches on the Designs Register so that we can file for invalidity of any design that is not materially different to your Registered Design.

Filing a design application 

We will require certain documents and information to enable us to prepare and file an application, we need drawings or photographs showing all features of the design.
We also need to know:
The full name, address and nationality of the applicant (which may be an individual or company); and
A description or general name of the article to which the design is to be applied (if this is not obvious);
Full details of any application from which you wish to claim priority.
We can also include a brief explanation of the design in the application, but this is not compulsory. If priority is claimed, then it is necessary to submit a certified copy of the priority application within three months of filing.

Deferment of registration 

A UK Registered Design is usually registered and published once it has passed the registration process. However, the registration and publication can be deferred for up to 12 months from the filing of the application.
This is achieved by not consenting to the publication of the design in filing, and then filing a subsequent consent at some point before 12 months from the filing date.
There is an additional fee for deferring the publication and subsequently the registration of the design.
There are often situations where immediate publication of the content of the design registration may not be desirable, such as when corresponding patent protection is being pursued in respect of the content, or where the content relates to an upcoming product that has yet to be formally publicly announced. A UK design application can be deferred for a maximum of 12 months.

Multi-Design applications 

It is possible to file applications covering more than one design, with no restriction on the designs which are grouped together. The advantage of filing such multiple applications is a reduced cost compared to single applications.
Each of the designs in the multiple application is a separate piece of property and therefore can be licensed and assigned separately.
At renewal, not all the designs have to be renewed. It is possible to claim different priorities for each design and to defer the registration and publication of only some of the designs.

Invalidity 

As explained above, an application for invalidity may be filed once the design is registered. An invalidity action may be filed on the basis of a lack of novelty, individual character, or that the proprietor is not entitled to the design. Additionally, the holder of an earlier trade mark or copyright may file a request for invalidity based on their earlier rights.

Registration abroad 

The filing of a United Kingdom design application generates a “priority date” which can be claimed to support corresponding design applications filed abroad within six months of the UK filing date.
It is also possible for a UK registered design application to claim priority from an overseas filing.
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5 Things you Need to Know About Trade Marks

Every business has something unique about them and trade mark registration may be the best way for your business to protect what makes you a cut above the competition.

1. What is a trade mark? 

A trade mark is a type of Intellectual Property (IP) connected with a particular company, product or service. Trade marks can be words, names, initials, logos, monograms, shapes or signatures, numerals and designs. They are something that customers recognise and associate with your good reputation and the quality of your product or service.

2. What do I need to know before registering a trade mark? 

To register a UK trade mark you will make an application to the Intellectual Property Office, you can do this yourself however it is advisable to go through an experienced agent for peace of mind and ensure there are no costly errors when applying.
Checking other trade marks before you apply is important, you want to ensure you’re not accidentally infringing on anyone’s current registered trade mark so carrying out this check first is essential.
Trade marks fall into 45 different classes, they can be registered under more than one class however the cost of registering will increase for every class applied for. When applying you have to state the correct class on the application, if this is incorrect or you change your mind, you will incur a further costs.

3. How long does a UK trade mark take? 

The process of registering a trade mark takes around 6 months. However, legally your trade mark is in effective from day one of the application, so if you are approved and an infringement occurred within the first six months you may still have a case.

4. What is a watching service and do I need one for my trade mark? 

A UK trade mark lasts for 10 years however some maintenance is a good idea to ensure it is continually protected. A watching service is a process where an agent annually checks other trade mark registrations on your behalf to ensure no new applications infringe on your trade mark. They will keep you updated and advise on what the best way forward is if this does happen. Letting this lapse may cause your trade mark to become void. For example, if someone or many businesses have been using a similar trade mark that you feel infringes on yours for over 5 years they can make a case that you shouldn’t be able to trade mark it as it’s in common use. Seeking a professionals opinion in this area is always the best idea.

5. How do I apply for an international trade mark? 

Trade marks only apply in the country that they are registered in. If you are trading internationally it may be worth registering in the other countries you deal with. Since the UK left the EU trade marks will need to be registered with the countries’ version of the Intellectual Property Office. Legally you will need a representative in each country you trade with. For more information consult a trade mark professional to see what the best course of action is for you.
Trade marks can be an invaluable asset to your business, seeking a professionals opinion to ensure your application is correct and has a good chance of being approved is best practice. The National Business Register, as part of Start.biz, has over 35 years experience in the field with qualified experts on hand to answer any questions you may have and guide you through the process. Find out more here.

Guarantee Company FAQs

WHAT IS THE DIFFERENCE BETWEEN A GUARANTEE AND A LIMITED COMPANY? 

A Guarantee company does not have shareholders who receive the benefit of the profits. ‘The Guarantors’ just guarantee that they will pay a certain amount to creditors should the company fail.

HOW MUCH IS THE GUARANTEE FOR EACH MEMBER? 

That is up to you, the higher the amount, the higher the guarantee. Most members only give £1 guarantee meaning they are only liable for that amount.

WHAT ARE GUARANTEE COMPANIES USED FOR? 

They are not seen as commercial trading companies and can be charities, members clubs, Associations, or as communal property owners i.e., a block of flats with each owner as a member.

IF NO SHARES ARE ISSUED HOW CAN ANY PROFITS BE TAKEN? 

Directors are still appointed, and they can properly take any expenses, salary, bonuses etc. that the company decides to give them.

CAN A GUARANTEE COMPANY BECOME A CHARITY? 

Yes, many Guarantee companies are formed as charities to raise money from the public to benefit the charity.

CAN A GUARANTEE COMPANY RAISE FUNDS? 

Yes, for example 50 people paying £1000 into a company could then elect to buy a premises for their “club” or “association” to be run from.

DO ANY MEMBERS HAVE DIFFERENT AMOUNTS OF GUARANTEE? 

They can, however we recommend all members guarantee the same amount.

DO ALL MEMBERS HAVE TO GIVE A GUARANTEE? 

No, say an association is formed with 4 original guarantors then it is up to them to decide whether new members become guarantor members or not. An association of 10,000 members may only have a few as actual guarantors.

HOW ARE DIRECTORS APPOINTED? 

By vote of the members, or in a new company the first members may decide to be the first Directors.