Do I need to register a business name?

Every business trades under a name. Under the Business Names Registration Act 2011, you must register that name with ASIC unless you're:

• a sole trader using only your first name and surname
• a partnership using all partners' personal names
• a company trading under its exact registered company name

The exemption is narrow. ASIC's own example: John Smith doesn't need to register "John Smith", but does need to register "John Smith Gardening" or "John Smith & Co". The same applies to a company that trades under a brand rather than its registered name.

Old "trading names" recorded before May 2012 have no legal status. Trading under an unregistered name that needs registration breaches the Act.

ASIC won't register a business name unless you have an ABN or have applied for one. You can apply for both at once through the Business Registration Service, or get your ABN first and then register the name with ASIC.

Before you apply:

• Check availability on ASIC's business names register. A red result means the name is taken or not allowed, and amber means ASIC needs to assess it.
• Check other restrictions. Some state and territory laws limit the use of certain industry and professional terms.
• Choose a period. Registration lasts one or three years and must be renewed.

Your registration details go on a public register. If you operate as an individual from home, ASIC shows only your suburb, state and postcode for your business address.

Registering a business name stops someone else registering an identical or nearly identical business name. That's about it. It doesn't:

• give you exclusive rights to the name
• stop others using similar words in their names
• protect you if your name infringes someone else's trade mark

That last point catches people out. If another business has registered a similar name as a trade mark for similar goods or services, they may be able to stop you using it, even though ASIC accepted your business name.

A registered trade mark is what gives you exclusive rights to use a name as a brand across Australia, for the goods or services it's registered for. Before you commit to a name, search IP Australia's trade mark database. A Sprintlaw lawyer can run a trade mark search and file an application for a fixed fee.

A business name isn't set and forget. ASIC sends renewal notices before the registration period ends, so keep your email address on the register up to date and renew on time.

Other changes to plan for:

• Changing structure. If you move from sole trader to a company, the company will generally need its own ABN, and you'll need to transfer the business name to it if you want to keep using it.
• Updating details. Keep your addresses and contact details on the register current.
• Closing down. If you stop trading, cancel your business name and ABN within 28 days.