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Stabroek News

Unregistered businesses cannot advertise, use letterheads
published: Sunday | October 14, 2007


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The Companies Office of Jamaica, formerly Registrar of Companies, in New Kingston. Non-registered businesses face a $15,000 fine or imprisonment if they advertise.

Businesses not registered with the Companies Office of Jamaica (COJ) face prosecution involving a fine or imprisonment if they advertise or issue correspondence on a company letterhead.

Penalty for non-registration is a fine capped at $15,000 or imprisonment for up to three months.

The provision is contained in the amendments to the Registration of Business Names Act that became effective on September 3, and stipulates that only businesses that are registered are permitted to advertise.

"This means that placing an advertisement in a newspaper, sending out something on a letter -head, anybody in any way representing themselves in a name other than their true Christian and surnames, are liable for prosecution if they are not duly registered," said deputy chief executive officer of the COJ, Shellie Leon, in a JIS interview.

The COJ has been disseminating material on details of the act to advertising agencies, who can then inform their clients.

"When persons go to them to advertise and are not registered, they (the agencies) can tell persons of the requirements and give them the necessary tools to go and register," said Leon.

Providing more details about the Registration of Business Names Act and its recent amendments, the deputy CEO said that the act governs the registration of sole proprietorships, partnerships and now corporations trading or conducting business in another name.

"This legislation is ideally suited for small-business proprietors who trade in a limited scope on a small scale or persons not engaged in activities which by their very nature, would give way to frequent litigation," Leon said.

Outlining the areas covered by the amendments, she pointed to its recognition of electronic registration, registration of business names by companies, obligation to register as a precondition of advertising, regulations for use of names for firms, traders, corporations and individuals, and increases in penalties for contravening the law.

The Electronic Transaction Act in November 2006 now facilitates the electronic registration of businesses, in addition to traditional methods of personal deliver, post and courier.

"Methods are now being worked out whereby there will be systems in place for persons who file businesses electronically," said Leon.

The COJ will not register companies whose names infringe another's registered trademark, and has suggested that applicants do their checks prior to applying.

The legislation also gives the registrar the authority to have a business closed through application to a court, in circumstances where the company ignores up to three requests to register or renew registration.

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