Know your Red Tape!! Corporate Dentistry and the GDC – a reminder!!!
Increasingly dental practice owners are looking to trade their practices either in whole or part through a limited company. Whilst a limited company can be quickly set up at Companies House there are some important GDC rules to observe which are sometimes overlooked.
Company Name
The use of the words “dental” and “dentistry” are restricted words under legislation. As such before anyone can set up a limited company with these words in the company name, the applicant must obtain a letter of non-objection from the GDC and obtain approval from Companies House.
The guidance issued by the GDC indicates that the letter of non-objection can be obtained by sending an email to businessnames@gdc-uk.org including the following information:-
- Proposed company name
- Business activity (e.g. dental supplies, dental practice and dental laboratory
- Full postal address
- Applicant’s full name and GDC registration number
However please note that the above requirements also apply where a practice owner does not want to trade via a limited company but wants to use the words “dental” or “dentistry” in a business or trading name. So, if I were a registered dentist and wanted to trade as “Stephen Knowles Dental Care” with that name above my practice door, I would still need to obtain the letter of non-objection from the GDC. Also, even though I am not forming a limited company I would still need the Secretary of State’s approval from Companies House to use this business name.
Please also note that domain names such as stephenknowlesdental.com could be considered as a business name and fall under the above provisions. If the domain name matches the approved company or business name no separate approval is required as the GDC/Secretary State have issued permission for the formation of the company/business.
Limited Companies Board of Directors
The Dentists Act 1984 states that a limited company will commit an offence if the company carries on a dental practice at a time when a majority of its board of directors are not either registered dentists or registered dental care professionals.
As such this means as follows:-
- A limited company having a sole director; such director must be GDC registered;
- A limited company having a board of two directors: one director must be GDC registered;
- A limited company having three directors: at least 2 directors must be GDC registered;
- A limited company having four directors: at least 2 directors must be GDC registered and so on
Sole traders and partnerships
Again the Dentist Act 1984 makes it clear that an individual who is not a registered dentist or dental care professional cannot carry on the business of dentistry. Therefore I, as a non-dentist, cannot buy a dental practice as a sole trader and staff it with associate dentists and “get round the rules” by saying as I am not treating patients personally I can own the practice.
This prohibition also extends to being a partner in a dental practice. So even where there may be a majority of GDC registered partners within the Practice, I cannot participate in that partnership if I lack GDC registration.
It is quite common to see these rules being contravened in a family business where a non-GDC registered family member has been made a partner for tax reasons. The Dentists Act prohibits this!!
As such, make sure you stay the right side of the law by knowing your rules and regulations.
