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It is common to see people mistake the difference between a ‘Company Name’ and a ‘Trading Name’. In fact, the ‘Company Name’ and ‘Trading Name’ have two very different meanings for those who carry on businesses. In this article, we will explain those differences. We will also set out the process for registering a business name with the Australian Securities and Investments Commission (ASIC).
What is a Company Name?
A company name is the name of your legal entity as it is registered with ASIC. For example, ‘The Business of Things Pty Ltd’. This is the name that you apply for when your company is incorporated. Your company name will be on all official documents relating to your company. You can trade under your company name, or your company’s trading name can be different.
Company Name vs Business’ Trading Name?
Using the example above, suppose your company name is ‘The Business of Things Pty Ltd’. You can carry on your business under the company name, ‘The Business of Things Pty Ltd’. You do not need to register your company name as a business name. However, if you’d like to operate under a name different from your company name, you will need to register that name as a business name. For example, you might like to register the business name, ‘The Business of Things’.
You can apply for the business name directly through ASIC using ASIC Connect. To register the business name, visit the ASIC website here. Registering your new business name will not affect your ACN or ABN.
ASIC charges a fee for registering the business name, depending on the registration length. The fees as of 1 July 2022* are:
- 1 year = $39; and
- 3 years = $92.
*Registration fees may change annually. Be sure to check the ASIC website for the most accurate fees.
You must renew a business name (and pay the renewal fee) every year or every three years (depending on the option selected in the initial registration or previous renewal). You should receive a reminder notice from AISC by email 30 days before the renewal is due.
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Trade Mark
Unfortunately, many businesses need to learn how to protect their business name. The concept of registering a business name is distinct from protecting any intellectual property rights in the name.
Registering a business name does not provide exclusive ownership of your business name. It also does not prevent other people from being able to register and use similar names. To gain exclusivity over a particular trading name, you must register it as a trade mark with IP Australia.
If someone else registers your name as a trade mark, they may still use the name. You could also infringe on their intellectual property rights if you register a business name that is similar to their trade mark. Therefore, running a trade mark search is always a good idea before deciding on and registering a business name.
Key Takeaways
To many, a company name and a business name may seem like interchangeable concepts. All companies are incorporated with a company name. If you operate your business using the company name, you do not need to register a business or trading name. If you would like to conduct business under a name and trade under another company name, you will need to register a business name using the ASIC Connect portal. Registering a trading name does not give you exclusive rights over that name. To secure a name for your exclusive use, consider registering the name as a trade mark with IP Australia.
If you need help registering your company or trading name, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A company name is the name of your legal entity as it is registered with ASIC. For example, ‘The Business of Things Pty Ltd’. This is the name that you apply for when your company is incorporated. Your company name will be on all official documents relating to your company. You can trade under your company name, or your company’s trading name can be different.
ASIC charges a fee for registering the business name, depending on the registration length. The fees as of 1 July 2022* are:
1 year = $39; and
3 years = $92.
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