Anja Pich is a commercial lawyer and the Managing Lawyer at Lawpath. She practises across all areas of commercial law and advises businesses of every size, from first-time founders to established companies, on their legal, regulatory and commercial needs.
To transfer a business name from sole trader to company, the current holder runs a “cancel and transfer” through ASIC Connect, then the company re-registers that name against its own new ABN. You only need to do this if the company will keep trading under a registered business name. If it trades under its exact company name, you register nothing extra.
Here is where most people get stuck. They assume incorporating a company automatically carries their old sole trader name across. It does not. The name is tied to your personal ABN, and that ABN does not follow you into the company. Sort the order wrong and you can end up trading under a name the register says belongs to someone else: your former self.
- Your company name and your business name are two different registrations. Registering one with ASIC does not register the other.
- Trading under your exact company name? You register nothing extra. The company name exemption covers you, so there is no business name to transfer.
- Keeping a separate brand name? You transfer it to the company’s new ABN. That means a cancel and transfer through ASIC Connect, not a details update.
- Your sole trader ABN cannot move to the company. The company applies for its own ABN after it has an ACN, and you cancel the old one later.
- Get the sequence right and the whole switch takes a week or two. Company first, ABN second, business name third, old ABN cancelled last.
Do you need to transfer your business name from sole trader to company?
Honestly, it depends on how you plan to trade. There are two paths, and the old “short answer is no” skips the one that catches people out.
Say you run “Harbourside Plumbing” as a sole trader. You incorporate Harbourside Plumbing Pty Ltd and trade under that exact name on every invoice. You do not need a separate business name at all. A company can legally trade under its own registered company name without registering it again. Nothing to transfer, nothing to pay.
Now say the company is “HSP Holdings Pty Ltd” but you still want customers to see “Harbourside Plumbing”. That brand is a registered business name, and it is tied to your personal ABN. For the company to use it legally, the name has to move to the company’s new ABN. That move is what people mean when they talk about transferring a business name from sole trader to company.
So the real test is one question: will the trading name on your signage and invoices exactly match your registered company name? If yes, relax. If no, you have a business name to transfer.
When do you actually have to transfer the business name?
Three situations decide it. Read these and you will know which one you are in.
You will trade under the exact company name
This is the clean path. Your company name is your trading name, so the company name exemption applies and you register no separate business name. One catch worth knowing: the exemption only covers the name exactly as registered. “Harbourside Plumbing Pty Ltd” is covered. Dropping the “Pty Ltd” on your website and trading as plain “Harbourside Plumbing” is a different name, and that one needs registering.
You want to keep a separate registered business name
This is the path most growing sole traders are actually on. You have built recognition in a brand or trading name, and the new company name is different or more formal. To keep using that trading name, you transfer it to the company’s ABN. Updating your ABN details does not do it. ASIC is explicit that an ABN-details change cannot move the business name holder. It has to be a full cancel and transfer.
You are selling or handing the business to a new owner
If someone buys your business, the name usually goes with it. Most sale contracts include a clause requiring you to transfer the business name, because the name carries goodwill and goodwill is often a big slice of the sale price. The mechanics are the same cancel and transfer. The difference is that the transfer number goes to the buyer, who registers the name under their own details.
How to transfer a business name from sole trader to company, step by step
Order matters more than anything here. Do these in sequence and the switch is smooth. Jump ahead and you create gaps where the name, the ABN and the entity do not line up.
- Register the company first. You need an Australian Company Number (ACN) before anything else. You can register a company online and get the ACN that unlocks every step below.
- Apply for the company’s own ABN. The company is a separate legal entity, so it needs its own ABN. Your sole trader ABN cannot be reused. Apply for the new company ABN once the ACN is issued.
- Sort tax registrations. Register the company for GST if it will turn over $75,000 or more, and for PAYG withholding if it pays wages. These attach to the new ABN, not the old one.
- Cancel and transfer the business name. Log in to ASIC Connect as the current holder, select the business name, choose “Cancel/Transfer business name”, and confirm you want to transfer. ASIC emails a transfer number, usually within 24 hours.
- Re-register the name under the company ABN. Use that transfer number to register the business name against the company’s ABN, pick your registration period, and pay the fee. Re-registering from your personal ABN to the company’s is exactly what people mean when they ask how to transfer a business name from one ABN to another.
- Move everything else across, then cancel the old ABN. Shift contracts, leases, licences, insurance and your bank account to the company. Only once the sole trader side has genuinely stopped trading do you cancel your old ABN and finalise any outstanding BAS or tax.
One detail the step list hides: the transfer number is valid for four months and 28 days, and ASIC cancels the old registration within 28 days of the transfer starting. You have a window, not a deadline measured in hours, so there is no need to panic if the company ABN takes a day or two.
Need specialised advice regarding your company?
Contact a Lawpath consultant on 1800 529 728 to learn more about company registration, customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.
What it costs and how long it takes
None of this is expensive. The business name fee is the small one. The company registration is the bigger line item, and it is a one-off.
| Step | Approximate cost | Typical timing |
|---|---|---|
| Register the company (ACN) | ASIC fee around $636, plus any service fee | Minutes to a few hours online |
| Apply for the company ABN | Free direct, or bundled with company setup | Often same day, up to 28 days if reviewed |
| Business name, 1 year | ASIC fee around $47 | Issued once you re-register with the transfer number |
| Business name, 3 years | ASIC fee around $108 | Same as above, cheaper per year |
| Business name transfer number | No separate charge | Emailed usually within 24 hours |
Two money traps catch people. First, you do not get a refund on the unexpired part of your old business name registration when you transfer. Second, renewal periods you already paid for do not carry over to the new registration. If you paid three years up front last month, that money does not follow the name across. Worth knowing before you time the switch.
What we see in Lawpath consultations
Sole trader to company restructures are one of the most common reasons founders book a business structure session with us. A few patterns come up again and again, and they are rarely the thing people called about.
The first is the exemption mix-up. Founders assume that because the company name is registered, their trading name is covered. Then they notice the brand on their website does not match the company name on their invoices, and the register shows the name still parked under their personal ABN. The fix is simple once you know it. The surprise is that nobody told them earlier.
The second is sequencing. People cancel the sole trader ABN too early, usually in a tidy-up mood, before the company ABN and the name are sorted. For a short stretch the business is trading with no clean ABN behind the name. Always let the old structure run until the new one fully stands on its own.
The third shows up when a restructure is really a sale in disguise. A founder “moves” the business to a company they co-own with a new partner or buyer, and the business name transfer gets bundled into terms of sale without anyone pricing the goodwill properly. If money or new owners are involved, that is a sale, and the name transfer deserves its own clause, not a footnote.
Underneath all three sits one pattern: the business name is the last thing people think about and the first thing that trips them up. Put it on the restructure checklist early, next to the ACN and the new ABN, and it stops being a problem.
Why move from sole trader to company anyway?
Weighing the switch? The name is a detail. The structure is the real decision. A sole trader and a company are taxed and protected very differently, and that is usually what pushes people to change.
A company is a separate legal entity. Its debts are generally its own, so your house is not automatically on the line the way it can be as a sole trader. A company can also bring in shareholders, which matters the moment you want investment or a co-founder.
Tax is the other driver. A base rate entity company pays 25% on its profits, against personal rates that climb to 45% plus the Medicare levy at the top. A company does not get the tax-free threshold, so the benefit depends on how much you reinvest versus draw out. That trade-off is exactly the kind of thing to model before you commit, and it is worth deciding on your business structure with real numbers rather than a gut call.
There can also be capital gains tax relief when you move eligible assets into the new company under the small business restructure rollover, available to businesses with aggregated turnover under $10 million, provided the change is genuine. This is firmly accountant territory. Get the advice before you move assets, not after.
Frequently asked questions (FAQs)
Do I need to transfer my business name if the company has the same name?
No, if the company trades under its exact registered company name. The company name exemption covers you, so there is no separate business name to register or transfer. You only transfer a name when the company will trade under a different, registered business name.
What is the difference between a company name and a business name?
A company name is the legal name of the entity, registered with ASIC and tied to your ACN. A business name is a trading name you operate under, tied to an ABN. You can trade under your company name for free, or register a separate business name for a brand.
Does my sole trader ABN transfer to the company?
No. A company is a separate legal entity, so it must apply for its own ABN after it has an ACN. Your sole trader ABN cannot be reused. You cancel it once the sole trader business has stopped trading and your tax obligations are finalised.
How long does an ASIC business name transfer take?
ASIC usually emails the transfer number within 24 hours of the current holder starting the transfer. The number stays valid for four months and 28 days, giving the new holder time to re-register. The old registration is cancelled within 28 days of the process beginning.
How much does it cost to transfer a business name?
That transfer number itself has no separate charge. You pay to re-register the name under the company ABN, around $47 for one year or $108 for three years. ASIC indexes these fees on 1 July each year, so check the current amount before you pay.
Do I get a refund on my old business name registration?
No. You do not get a refund on the unexpired part of your old registration, and any renewal period you already paid for does not carry over to the new one. Factor that in if you recently paid for a multi-year registration before transferring.
What happens if I don’t transfer my business name?
If the company trades under a registered business name that still sits with your personal ABN, the register shows the wrong holder. Carrying on business under an unregistered name is an offence under the Business Names Registration Act. Invoices, contracts and renewal notices can also go to the wrong entity.
Can I be forced to transfer my business name when I sell?
Effectively, yes. Most business sale contracts include a clause requiring you to transfer the business name to the buyer, because the name carries goodwill that the buyer is paying for. You start the same cancel and transfer, then give the transfer number to the new owner to re-register.
Next steps
Moving from sole trader to company is a sign your business is growing, not a sign you are behind. Plenty of founders do it every year, and the paperwork is far less scary than it looks once the order is clear. Company first, ABN second, business name third.
Do the whole thing in one place and skip the guesswork. Register your company with Lawpath to get your ACN, ABN and business name sorted in one run, with lawyers on hand if a question comes up.
If your situation is less standard, say a part-sale or a tricky asset transfer, hire a business lawyer for a fixed-fee quote before you lodge anything with ASIC. For background on how the numbers differ, see the difference between an ACN and an ABN.
Official sources if you want to read further: ASIC on how to transfer a business name, the Business Names Registration Act 2011 (Cth), and the ATO on changing your business structure.
