Business Name v Company Name

Do you know the difference between a company name and a business name or, more importantly, which one you need? To the uninformed, that may seem like interchangeable words for the same concept. However, this is not the case.

Each brings with it its own status, administrative requirements and of course rights and responsibilities.

Differences

A Business Name is a name under which you undertake your business activities. It is also often referred to as a Trading Name. For instance, if you are a sole trader, your business name might simply be your first and last name, like John Smith.

A Company Name, on the other hand, is a separate legal entity registered with ASIC. Company Names are often followed by Pty Ltd, or Limited, indicating the legal structure of the entity. There are also times when companies may trade under a name that is NOT their legally registered name. For example, John Smith Pty Ltd trading as Smith Consulting Services.

In this example, John Smith Pty Ltd is the registered company name. But clients and suppliers may recognise and identify the company by their trading name, Smith Consulting Services.

Business name registry

In Australia, we have a national register of business names to assist in identifying entities that are engaged in business activities. This provides some certainty to consumers who may be unsure as to who exactly is providing their goods or services.

If you are trading under a name other than your registered company name, or if you are a sole trader trading under a name other than your first and last name, you are required to register that name with ASIC.

If you are unsure of your obligations, please contact the team at You Legal. We can help you navigate the regulations to make sure your business is fully compliant.

It is often misunderstood that simply registering a business name grants you ownership and the right to exclusively use that name. This is unfortunately not the case!

What Should I Do Next?

Contact us if you would like further legal advice on Business Names and Company Names. Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.