Owning a business is the ideal life for most people who no longer want to live off a 9 to 5. Most people also want the satisfaction and fulfilment of having a business that they can also theirs. However, the majority of business owners in Australia do not know how to start a business and register a business name. A business name is a name your business operates under. Business owners end up frustrated and unsure of completing the process. That’s why we are here to provide you with a solution. This article covers the importance of registering your business name, how long it would take and how to register your business name.
The Importance of Registering Your Business Name
Registering your business name in Australia is very important because it makes your brand legitimate and trustworthy. Your business needs to have a registered business name to help build your company’s reputation. In addition to the reasons listed above, there are several other benefits to registering a business name. These benefits include:
Registering your business name also has benefits on your internal company policies. It can reduce conflict amongst shareholders and partners regarding issues of share allocation.
A registered business name makes your company more credible. Customers can trust your company because it is legally recognised. You can also protect your business name from copyrighting since your business name will be registered and rendered unavailable to other businesses that may want to use the same name.
Finally, registering a business name nationally gives longevity. The business name might outlive the owner such that even after death, the business name lives on. A registered business name can be sold or passed on to another individual instead of phasing out after the owner’s death.
A registered business name can also be publicly displayed. Business cards, officer forms, advertising materials, loan documents, contracts, and website domain names will all carry the registered business name.
How Long Does It Take?
Filling out the business name registration form online should take you no more than 15 minutes to complete. Provided you have submitted the necessary documentation for your ABN and paid the application fee, you should receive confirmation in about two working days if you make your payment by credit card or five working days if you made payment via EFT, BPay, or bank transfer.
How much does a business name cost?
The cost of the business name varies slightly depending on how long you want it to be valid before renewing it. The fees for registering your business name with ASIC are $88, suitable for three years, and $37 valid for one year.
How to Apply
Registering your business name can be as easy as ABC. You register your business name and other essential business registration that the Business Registration Service Australia. Below is a detailed step-by-step process on applying for a business name in Australia.
- Step 1: identify your business structure.
When registering your business, you will need to identify the business structure your company operates. There are four common business types in Australia. They include:
Trust: a trust is a business structure where a trustee is in charge of the operations of a business.
Sole trader: a sole trader business structure is one of the most common business structures. It gives the owner complete control of their business.
Company: a company is a separate legal entity. In this case, your liability will be limited.
Partnerships consist of two or more people who share losses and profits.
Once you have identified which of these your business falls under, you can move on to step two.
- Step 2: Have an ABN
Before applying to register a business name, you should have an ABN. The Australian Business Number is an 11 digit number that uniquely identifies a business. It is not the same as a tax file number and doesn’t serve the same purpose. Having an ABN also has several benefits to your business. Some of the benefits are:
- You can register an Australian website domain name using your ABN
- It identifies your business, especially when placing orders or requesting invoices.
- It is used or GST ( Good And Service Tax) transactions
- It helps you avoid Pay As You Go taxes
- Step 3: Check if your business name is available.
Another business with the same idea may be operating under the name you want to use. So you have to check that the name you want is available. Otherwise, it will pose a problem for your business. If the name is available, great if not, you would have to use another name. To verify that the name you want to use is available, visit the Australian Securities and Investments Commission’s business names register. Your name is registered nationally; there is no need to register it in your states.
- Step 4: protect your brand
Because a name is registered doesn’t automatically mean your brand is protected from copyrighting. Your intellectual property is still at risk if you don’t protect your brand. You can do this by making your brand a trademark. We suggest you learn more about making your brand a trademark to watch it. Before registering your business name, make sure that the name is already used as a trademark or a website name.
To conclude, registering your business would only take about 15 minutes but will save you from a year’s worth of stress. A registered business name is also more reputable and credible. To register your business name today, follow the steps listed in this article and begin the process today. We hope the contents of this article have been of help. Contact the Business Registry Service on their official website for more information on registering.
- What is the difference between a company name and a business name?
Some people might use the terms interchangeably, but there is an apparent difference between a company name and a business name. While a company is a separate legal entity registered with ASIC, a business name is simply a name under which your business operates.
- Is a business name a legal entity?
A company is a legal entity. While a registered business name legitimises your operations, it is just a name for trade and business purposes.
- Can I register a business name and not use it?
Yes, you can register a business name and not use it immediately. Although that is possible, it is not advisable. A business name is not automatically trademarked. Another business can choose to use your name and register as a limited liability company. That gives them an edge over you, and they have the right to demand that you stop using the name even though you had it first. Make sure your business name is actively in use after registering it.
- Do I need a business name if I have a company?
If your company conducts business under a name not yours, you will have to register a business name. The business name will be under which your company carries out trading transactions. That is why it is also called a trading name. If your company doesn’t perform any business or trading-related activities, then you can conveniently operate under your company name.
- Must I have an ABN to register a business name in Australia?
Yes, you must have an ABN to register a business name. If you do not have one, be in the process of getting one from the Australian Business Register.