There are some circumstances where you may need to transfer your business name to a new Australian Business Number (ABN). For example, if you are changing your business structure from a sole trader to a company, as most changes to business structures will require a new ABN.
This process involves two simple steps:
1. First, you need to transfer your business name
2. Then, you need to register your business name using a new ABN
This article will explain this process to assist you, as well as some other considerations that might be relevant if you are changing business structures to a company. If you need more information, visit the Australian Securities & Investments Commission (ASIC) website. Otherwise, if you need further assistance or advice, it may be worth contacting a business lawyer.
1. Transferring your business name
To transfer your business name, you will need an ASIC Connect account, which will also need to be linked to your business name. You should ensure that your business email address is up to date. If so, you will need to select the appropriate business name and click transfer. Once this is complete, you will be sent a 13 character transfer number. Afterwards, you can then register your business name to a new ABN.
2. Registering your business name using a new ABN
To register your business name using a new ABN, you will simply need to select the ‘register a business name’ option under the Licences and Registrations tab. Following this, you should select the appropriate ABN option and enter your ABN, followed by the business name as it appears on the ASIC business names register. You will then need to enter the 13 character transfer number and registration period, followed by other important information relating to the proposed business name, such as its holder details and addresses. Finally, you will need to make the appropriate payment.
Note that after your business name is transferred and registered, renewal periods which have already been paid for will not carry over to the new business name registration.
Other considerations
A common reason to transfer your business name to a new ABN is if you are changing business structures from sole trader to company. This can be for many reasons such as rapid business growth, which would better suit a company business structure where you can hire employees and own assets as a separate legal entity.
If this is the case, and you are confident that a company business structure is the right fit for your business, you should also be mindful of:
- Registering your company. Lawpath can easily assist you with starting your company online here, including applying for an ABN, ACN and TFN.
- Transferring your assets. You should transfer all existing assets and licences to your new company.
- Cancelling your existing ABN. You will need to cancel your existing ABN if you have been undertaking business activities as a sole trader using that ABN. You cannot transfer that ABN to your new company. Before doing so, you should ensure all of your existing business obligations have been met.
