What is a ‘business name’?
A ‘business name’ is the name under which an entity has been registered by the Australian Securities and Investments Commission (“ASIC”) in the national Australian Business Names Register. In terms of the Business Names Registration Act 2011, registration of a business name is compulsory: an entity that carries on a business under an unregistered business name commits an offence.
There are exceptions to the registration requirement, including:
- An individual who carries on business under his own name;
- A corporation that carries on business under the name of the corporation; and
- A partnership that carries on business under a name that includes the names of all of the partners.
The entity concerned must make application to ASIC for registration of its business name. ASIC will register the name as long as it is not identical, or nearly identical, to an already-registered business or company name, is not undesirable and does not contain any restricted words or expressions.
A business name is registered for either one or three years. It expires automatically at the end of that period (whichever is applicable) but, on application, may be renewed.
What is a ‘company name’?
A ‘company name’’ is the name under which a company is registered with ASIC in the Register of Companies, and has a corresponding Australian Company Number (“ACN”) allocated to it on registration. A company name can be either a chosen name or, if none is chosen, it will be the company’s ACN itself, for example, A.C.N. 123 456 789 Pty Ltd.
An entity that applies to be registered as a company may or may not already have a registered business name. It is permitted to propose its registered business name as its chosen company name. ASIC will register the proposed company name as long as it is not identical, or effectively identical, to an existing company name or to a reserved company name (not reserved for the company in question); or is considered ‘unacceptable’.
A company name is registered in perpetuity.