Section 79 of the Act prohibits any person from carrying on business except under the person’s full name as recorded in an identity document or officially recognised or in the case of a juristic person (for example, a company), a business name registered with the Registrar of Companies.This means that a trading name must be the registered name of the entity.  Section 80 does, however, allow a person to register any number of business names that are used or will be used in carrying on business.

It should also be noted that in terms of section 81 of the CPA, a business name may not be the same as, or confusingly similar to an entity already registered under the Companies Act, the Close Corporations Act or the Co-operatives Act.

The name may also not be the same as or similar to a registered trade mark belonging to another person.If an entity conducts business under a trading name that is not its registered name, the National Consumer Commission may require it to cease trading under that name. 

The possible proliferation of new registered business names will require vigilance on the part of businesses and trade mark proprietors to protect their intellectual property rights in respect of their registered names.These sections (sections 79, 80 and 81) will only become effective on a date that will still be determined by the Minister which must be at least one year from the general effective date which is one year from 31 March 2011, therefore any date as proclaimed after 31 March 2012.

The Commission may not take any action to enforce section 79(1) at any time against a person for the use of a business name, if that person:Had registered that business name before 31 March 2011 in terms of any public regulation other than a repealed law; orWas actively conducting business under that business name for a period of at least one year before the date on which section 79 took effect.

It is however recommended that the business name is registered either, as a business name with the Commission or as a defensive name, which must be renewed every two years to ensure protection and future use of that name.

Source: Tech Talk (Aug 2011)