Wednesday 26 October 2016

What are the Benefits of Registering for a Business Name?

Having a business name is a primary essential for any business. After all, your customers and stakeholders identify your business by its name. There are legal aspects governing a business name, and it is important to consult a legal expert before you choose or register a name.
Apart from creating an identity for your business, registering a business name has other advantages. Being informed can prevent costly errors.
What is a Business Name?
It is the name you operate your business in. This is the name that your customers know you from, and recognise you.
Unless you operate as a company, you are legally obligated to register your business name. Whether you are a sole trader, partnership business, or a trust, you need to get your business name registered with the Australian Securities and Investments Commission (ASIC).

  • Your business has an official name
  • You need not register your business name again in another state or territory where your business operates, or wishes to operate. A single registration with the ASIC earns your business a national recognition.
  • The single registration brings in cost-savings, eliminating expenses associated with registering your business name separately in a new state or territory.
  • Once registered, your business name enters ASIC’s Business Names Register. A record of your business name, details, and contact information, is made available to the public through the ASIC website. This gives your business the benefit of legitimacy.
  • Having your name in the Business Names Register informs other businesses that your business name is taken. So, the likelihood of other businesses having the very same business name or a name too similar to yours is less. This helps preserve your business identity.
If you have registered a name for your business, it does not translate to having complete ownership of the name. Other businesses are entitled to have similar names. A business name needs to be registered as a trademark for exclusive rights over it.

Naming your business aptly is crucial. Consider different aspects including the kind of product or service your business offers, and the brand image you wish to portray to your customers. You also need to know if the business name you have in mind is available.
Understanding Business Name Registration
You need not register your business name if it carries your name or that of your partner’s. The name should include first name and surname. For example, a business name such as Olivia Hart need not be registered if that is your full name. However, Hart Fashions, needs to be registered.
If you are a company, and are operating under your company name, business name registration is not needed.
How Registering a Business Name Helps?
  • Your business has an official name
  • You need not register your business name again in another state or territory where your business operates, or wishes to operate. A single registration with the ASIC earns your business a national recognition.
  • The single registration brings in cost-savings, eliminating expenses associated with registering your business name separately in a new state or territory.
  • Once registered, your business name enters ASIC’s Business Names Register. A record of your business name, details, and contact information, is made available to the public through the ASIC website. This gives your business the benefit of legitimacy.
  • Having your name in the Business Names Register informs other businesses that your business name is taken. So, the likelihood of other businesses having the very same business name or a name too similar to yours is less. This helps preserve your business identity.
A Word of Caution
Registering a business name online is easy. It costs $34 to register a business name with a one-year validity. A business name registration with 3-year validity costs $80. The ASIC informs you two months before renewal date. Choose the right name for your business and get going!

Not Registered your Business Name Yet? Here is What you are Missing Out?

Establishing a business is certainly a challenging yet rewarding venture. Anybody can start operating as a new organisation and kick start their business. However, all that is required to remain in the business is to provide a quality service/set of services or products for the target markets or a specific industry sectors. Although registering the business name with the local or state Government is not necessary for completing business transactions, it is definitely a wise decision for an entrepreneur to get the business registered for numerous business-specific reasons.
Ensures Continuous Flow of Investments
Most of the times, while applying for business loans or while approaching other funding sources, a common question encountered by the organisation seeking help is, ‘whether your business is appropriately registered’. Investors and lenders would want to see business registration related proofs along with various other application requirements, when they are approving your loan. In addition, if you are planning to apply for credit cards as a business, then the creditors will also ask for the registration paperwork of your business.

Successfully Create Business Bank Accounts
In order to open your business bank account you should provide a proper proof, which supports your business being appropriately registered with the local or state government. Having a business bank account is extremely important for any business. However, it is of greater importance to smaller businesses as it is necessary to separate personal transactions from the business transactions. This also helps you in making a more professional approach to your business clients and investors. In short, this serves as a business name for which your clients make the payments or investors make their investments.

Reputation with Your Customers
It is natural for your clients, customers or particularly those with whom you have never got a chance to work with before, to seek assurance about your business legitimacy. Every potential customer suspects your business to be a ‘fly-by-night’ scheme if you have not got your business registered. After all when they are investing in you, they certainly have the right to evaluate their authenticity. Once your business is on the files with the state, it provides added peace of mind for all of your clients. This helps them in making better-informed decisions about investing in your business.

Getting Your Business on Record
One of the biggest advantages of getting your business registered with the local and/or state government is that, it helps you in protecting your business name. Once you get your business name registered, nobody else can register their business with the same name. Just imagine the hassle if you do not get your business name registered. Another business of the same name might just open and begin offering inferior quality services. If this happens, customers might inevitably get confused between the two and then conclude that you are the one who is providing inferior quality services.

Protection Against Legal Liabilities
Getting your business registered will help you get some protection against legal liabilities. Once you incorporate, you will be protected from being personally held responsible for certain specific accidents as well as other liabilities. This makes it easier for you to attract investors and get your business insured, as they will know that you will not be personally responsible for the well-being of the company.

Enhanced Business Continuity
Business continuity is one of the major aspects, which you cannot afford to ignore. It is important for your business to continue even when you are unable to personally support it. This is exactly where registering your business name will help you. Once you get your business registered, it becomes an entity, which will have its own rights. Therefore, somebody else can control your business, assume ownership or even sell your business, if the situation demands. None of these can happen without a proper business registration.

Supplier Discounts and Arrangements
Registered businesses are generally eligible for supplier discounts, which non-registered operations do not receive. This is because in general, suppliers offer wholesale rates for those business owners who have all the required state-related official paperwork in place. In addition, if you are planning to try for some government contracts for your business, then business registration becomes one of the major criteria.

Hiring Good Talent
Having your business registered will allow you to find and hire talented employees for full time and pay them as per the state laws. This is because as soon as you get your business registered with the state, you will receive state identification number. This enables you to route all the state taxes on behalf of the employees. Therefore, if you plan to hire more staff for your business, then it is better to ensure that your business gets registered with the state, before you begin searching for new employees.
Thus, getting your business registered will help you in numerous ways to safeguard the business and also ensure business continuity. What more reasons do you want? Step up and get your business registered today.

Everything is in the name – Discover what asic does not allow in your business name


For an entrepreneur, nothing can be as exciting as choosing a new name for the business. Name being a crucial business element, coining a name that is unique, creative, unused yet relevant to your business can be tricky and involves some serious work. With numerous guidelines and Australian Securities and Investments Commission (ASIC) restrictions in place, it is important to find a good name, the characters and words of which are in accordance with the restrictions imposed by ASIC.

The best way to start is to know what not to do. On that note, here are a few restrictions imposed by ASIC on the business names.

  • A name once registered cannot be registered again
  • The name to be registered cannot be similar to any of the names that are already registered
  • The business name to be registered cannot include any terms or phrases, which are prohibited, offensive terms or anything that implies a relation with a government or any similar entities
When a request is raised to get the business name registered, a thorough check is carried out in order to ensure that it meets all the standards and requirements of ASIC. However, to get your requests quickly processed, it is better to have a clear picture of what ASIC does not accept.
Restricted Expressions and Words
There are certain set of phrases and words, which cannot be used in the name of a company or a business without the consent from the Ministry. However, if a business has a connection with the prescribed entity and would like to include it in the name, then Ministerial consent is a must. The process can take up to 6 months and can also be expensive. Some examples of such words include the following:

  • Trust
  • Building society
  • Chartered
  • Chamber of commerce
  • University
In addition, any words that imply a misleading connection with the government, an ex-service men’s organisation or a royal family also cannot be used. These restrictions are put by the ASIC in order to prevent a company’s name from misleading the people about its activities.
Invalid Symbols and Characters
Although ASIC accepts almost all the letters, numerals as well as certain other special prescribed characters, it does not accept the usage of accented characters. These include ç, é, è, ü and á. Once ASIC registers the name of your business or company, only the uppercase letters and numbers will be used. All the accents get removed and letters in lowercase are not permitted.

Possible Clashes with Some Similar Names
Another aspect to be considered to get your business name ASIC approved and registered is to check whether your business name is identical or similar to any of the pending or registered trademarks. This can be checked by visiting the IP Australia website. ASIC holds the business responsible for any issues caused due to similarities in the business names. Therefore, if the name is not unique then ASIC demands the name to be ascertained by the business owner already using it to assert all the rights to this name.

Undesirable Expressions and Words
If your suggested business name has any of the following issues, then it will not be registered:

  • Sounds offensive to the public or a specific section of the public
  • Implies towards any illegal activity
  • Suggests some sort of connection with the government, royal families or ex-service men’s co-operations
Simply Use Your Australian Company Number (ACN) as Your Business Name
When you are planning to get your business registered, you can also use your ACN as the name of your business. This can be done by simply selecting this option on the order form. This will also give you some time to choose the best possible name for your organization. Once you finalize a name that is in accordance with the ASIC criteria, you can then change the name of your company.
Reserve a Name of Your Choice
You can also reserve a name for using it at a later point. Reserving a business name will allow you to put the company name you desire on hold. This does not allow anybody else to get their business registered in this name, while you can get time to take the necessary information about that name and then proceed towards getting that name registered. However, the time period provided by ASIC to reserve a name is just 2 months.
Therefore, if you are planning to get your business registered you now know what to include in your business name and what not to. So what are you waiting for? Step up and get started with the process of registering your business name.


Why registering your domain name is crucial for your business ?

Registering Your Domain Name is Crucial
A business name is an identifier for your business. Your employees, investors, and most of all, your customers, recognise your brand by your business name. With the online world playing a major role in purchase decision-making, it is no longer enough to have a registered business name to protect your business identity. There is a need to protect your online identity as well – with a registered domain name.
Registering Business Name Alone is Not Sufficient ProtectionSure, registering your business name gives your business an official identity. But, the law does not give you complete ownership of your business name when you register it.
Registration does not prevent other businesses from using your business name for commercial purposes. It would not be illegal for another business to use your business name for their website.
Registering your business name as a trademark gives you exclusive rights to your name offline. You need to register your domain name in addition to your business name, to preserve your business identity.
Benefits of Registering a Domain Name
  • Your business gets a website address – an online identity – when you register a domain name. A website can be a valuable marketing tool for your business.
  • Your business gets a unique identity online when you register a domain name. Your domain name will not be available to others once you register it.
  • You make it easier for your customers and other stakeholders to find you online when you register a domain name based on your business name.
  • A registered domain name identical to your business name helps deliver a consistent brand experience to your customers, online.
  • Registering a domain name makes your basic domain name details (excluding the date of creation and expiry of your domain name; and telephone number, facsimile address or postal address, of the registrant) available to the public.
This record, available through the WHOIS service of government-recognised auDA regulatory body, adds to your business legitimacy, online. This service is available for the following domains: asn.au, com.au, edu.au, gov.au, id.au, net.au and org.au.
The domain name you choose for your business is equally important. It should be relevant to your business. Go for a short, easy-to-remember domain name.
A registered domain name is a valuable business asset. You can purchase a domain name on your own or have an Internet Service Provider (ISP) do the job for you. Take your business forward by registering your domain name.

Discover the difference between your business name legal name and the trading name

Have you ever wondered, what exactly could be the difference between the legal, trading and the business names? Well, then you are certainly not alone. Many people wonder how different these names are and most of them often tend to get confused with these names. In addition, most of the business owners also assume that once they finish choosing a name for their business and get them registered, they will have unlimited rights on the name, which is in conjunction with their organisation. However, the reality is different. The following guide has laid out all the facts you always wanted to know.
Evaluating the Difference between a Trading Name and a Business NameWell, there is absolutely no difference between these two. Trading name is an older version of the business. Today, ‘business name’ and ‘trading name’ can be interchangeably used. However, ‘business name’ is the newer and more correct term. Therefore, this is the term, which we will be using throughout this article.Business name actually refers to the title under which your business operates. Your business name is the major factor, which helps you in finding new customers as well as identifying and connecting with your business. In addition, you can have numerous business names linked to an Australian Business Number (ABN).

What Exactly is a Legal Name?A Legal name often refers to the name of that entity, which gets mentioned in all your legal documents or official papers. It might not be same as your business name. However, if you are the sole trader, then your legal name only is likely to be your own name. In other cases, the legal name might include the proprietary limited firm’s name, the name of an incorporated association or the name of your partnership.

Should the Business Name be Registered?If you are planning your business to carry out trading under a name, which is different from the legal name of your business, then you will have to get the business name registered with Australian Securities and Investments Commission (ASIC).

Can the Business Name be Updated After it Gets Registered?Once the business name gets registered it cannot be updated. Even the slight modification cannot be done to it after it gets registered. However, if you still want to continue trading under a new slightly different business name, then you must get that new name registered. After getting the new name registered you can either get the existing business name cancelled (only when you do not want to use that anymore) or Just retain your existing business name (this can be done when you want to use this name at a later point or save it for another part of your business)

Should the Business Name be Registered in Every Territory and State?There is no need to get your business name registered in every territory and state. The business name should be registered only once. After this, your business name gets registered nationally.

Is the Registered Business Name Protected by a Trademark?As getting your business name does not give you any exclusive branding, ownership or trading rights on that name, your registered business name is not protected by any trademark. Only an actual trademark will be able to provide such protection. Besides, once you register your business name, it simply does not mean that no other business can operate with a similar name. However, if you are looking out for some exclusive branding or trading rights, then there are other procedures for availing them.

When is a ‘Trade Name’ considered to Infringe a Trademark?If a trade name is extremely similar to the trademark of a different business that it might create confusion in the mind of the purchaser, then it is known to infringe the trademark of that business. This often proves to an extremely expensive mistake.

Summing UpUnderstanding the terms such as ‘trademark’, ‘trade name’ as well as ‘business name’ can be highly confusing. Although they sound similar, each of these names have completely different meaning. With certain grey areas here and there, it is easier to view trade names and legal names with respect to entities or businesses and trademarks with respect to services or products offered by a business.