Commencement of the business names registration system
The release of the business names registration service is now planned for mid-2012. This initiative is part of a new government program that will reduce red tape, save time and cut costs for business. The new business name registration service will mean that businesses no longer have to register their business name in every state and territory they want to trade in. The new service will replace the current state and territory systems.
A joint online application for a an Australian Business Number (ABN) and national business name registration will be available to streamline the establishment of a new business. The business name and ABN are two of the most common registrations undertaken for business start-ups, and their amalgamation will make matters easier for businesses.
Conflicting Names
All business name registrations will be transferred to the national business name register on commencement of the national system. This will include some identical business names that have been registered (by different owners) in different jurisdictions.
For identical business names, ASIC may insert a distinguishing mark or expression on the register. The business name itself will not include the distinguishing word or expression, therefore businesses will not need to change their business name on their signage or stationery.
It is intended that when a distinguishing word or expression is added to the details held on a business name record, the assessment of new applications for business names will be impacted. A new business name will not be available if it clashes with the registered business name or with the combination of business name plus the distinguishing word/expression.
For example, Joe Smith operates Joe Smiths Plumbing in Sydney. Another Joe Smith operates Joe Smiths Plumbing in Brisbane. Both names will be grandfathered onto the national register. ASIC may insert (Sydney) and (Brisbane) on the register as appropriate, to distinguish between the business names. If this occurs, not only would another business not be able to make a new application to register Joe Smiths Plumbing, but also it would not be able to register Joe Smiths Plumbing Brisbane or Joe Smiths Plumbing Sydney.
Renewing Your Business Name
Existing business names originally registered in the States or Territories will still be due for renewal on their original expiry date.
All businesses with a registered business name will be reminded prior to the expiration date that their renewal is due. It is expected that renewals will continue to be issued by States and Territories up until the commencement of the new national system. All renewal notices thereafter will be issued by the Australian Securities and Investments Commission. Those businesses with renewals that fall due after the changeover date will be notified in plenty of time to renew their registration.
Lena Banoob
Senior Associate
T: +61 2 9390 8308