If you are starting a business and want to use a business name other than your own name, you’ll need to register a business name with the ASIC. This helps customers know who they are dealing with.
For example if Tina Shepherd sold her hats using “Tina Shepherd” as her business name she wouldn’t need to register. However, if Tina wants to add other words like “Tina Shepherd Hats” or “Tina Shepherd Sews” then she would need to register a business name
The main benefits of using a business name are distinguishing your business from other businesses and gives your brand its own status. The main disadvantages include the registration fees and potentially needing the trademark your business name so other businesses cannot use the same name.
The first step is registering a business name is to check the name’s availability. The two official checks are to see if is already registered with ASIC or trademarked through IP Australia. It’s also a good idea to check if the domain name is in use and social media names are free, a quick internet search should help with these.
Registration is fairly painless if you have your ABN, AUSkey or mygov log on. If you haven’t registered for an ABN yet, you will need to do this first.
You can register for either a 1 year or 3 year period and payment can be made either online via credit card, through BPAY, or at an Australia Post outlet using the invoice ASIC will send. Current fees are $34 for 1 year or $80 for 3 years.
Once completed you will receive a certificate of registration showing your business name, keep this somewhere easy to access and safe or display it at your physical premises.
It’s important to keep your details with ASIC up to date should you change your address, email or telephone number. This will help ASIC contact you when your renewal is due.
Trademarking is an important step as your business grows. However, trademarks must be registered in each country, a trademark in Australia is not legally recognised overseas, for example in America. This is important if you wish to export your goods to other countries, but trademarks are a topic for another day.
There is lots of guidance on ASIC’s website about business name registrations. This page is a good starting point
Would you like help figuring out your business registration requirements? Let’s chat here.
*As with all our blog posts this information is provided for reference only. It is not intended to, nor should it, replace the advice of a registered tax accountant who can deal with your specific business circumstances.