A business name is a crucial element of starting or owning any business. It is an asset you will trade under and what the public will identify you as. In this article, we will outline what you need to do when you discover your perfect business name.
Who Needs to Register their Business Name?
You will need to register your business name if you are running a sole trader business, partnership or trust, otherwise your business’s name will be your individual legal name. By contrast, a company does not require you to register a name separately.
Prior to registering your business name, you will have to acquire an Australian Business Number (ABN). An ABN is an 11 digit number used as an identifier by the government for taxation purposes.
Naming your Business
Before registering your business name, you should check whether it meets the following criteria:
1. There is No Overlap
Your business name cannot overlap or is very similar to an existing one. We offer a Company Namecheck tool which checks business name availability.
2. If Your Business will be Named After Yourself
If the business name is your full name or that of your partner’s, there is no need to register the business name.
Example
Natalie H wants to set up a hair salon business named ‘Natalie H’. As this business will be trading under her name, Natalie does not need to go through the business name registration process.
3. Restrictions on Business Names
Business names which are likely to be offensive to the public are restricted by ASIC. If the name has the terms, ‘Charity’ or ‘University’, it will also be restricted as it may mislead consumers by implying connections to such high-profile institutions. Additionally, ASIC does not accept some characters in business names including ‘ä’ and the ‘greater than’ > symbol. The full list of restrictions is available on the ASIC website.
4. If Your Business is a Company
A company has an obligation to display their legal status. If your business is a proprietary company, it must include Proprietary or ‘Pty’ in the name, e.g. McDonalds Pty Ltd. This also applies for no liability (NL) and limited liability (Ltd) companies.
Registering your Business Name
Once you have selected your perfect business name and have acquired your ABN, you can register your company. The registration applies nationally, allowing you to open your business anywhere in Australia. LawPath offers an online company registration which is quick and easy. We also offer additional services to help you set up your new business from the start.
Protecting the Intellectual Property of Your Business Name
However, it is important to remember that registering your business name will not give you sole trading rights or ownership specific to that name. A business name is only used to identify your business. Other businesses can still use the same name for trading and advertising. In order to gain exclusive trading rights and ownership over your business name, you will have to register a trademark for it. A trademark is a sign which is used to uniquely identify your business. An example of a brand’s trademark is Nike’s ‘Swoosh’, which others cannot use without Nike’s approval.
Additionally, if someone else has registered a business name with ASIC that you have already registered as a trademark, they cannot use it. If they continue, you can contact an intellectual property lawyer and pursue legal action. The registration of a trade mark over your business name will grant you legal protection from any potential legal consequences. Therefore, it is important to search for existing trademarks or register for one before you finalise your perfect business name.
Finding your perfect business name that represents your ideals to the public can be a struggle. But with the help of this article, you’ll be on the right path to secure your perfect business name.
