Jun 23, 2023
What’s the Difference Between a Business Name and Company Name?
Your business name is a key part of its public identity and customer recognition. But unlike most assumptions, a ‘business’ name and a ‘company’ name do not mean the same thing.
To operate any business in Australia, you must have a business name (with a few exceptions!). But you will only need a company name if you choose to register as a company structure to run your business.
Ever wondered what differentiates a business name from a company name? Here's what you need to know.
What’s a Business Name?
In Australia a business name is the name under which you conduct a business venture. To operate a business you need to complete a business name registration with the Australian Securities and Investment Commission (ASIC), and have an Australian Business Number (ABN), or be in the process of applying for one.
Exceptions to registering a business name
You will not always be required to register a business name. It’s not required:
- If you operate your business as a sole trader and use your legal name (for example your name is Peter Smith and your business name is Peter Smith).
- If your business is a partnership and its name is the same as the partners (for example, Peter and Peta Smith).
- If your business is already operating as a legally registered company, and your business name is the same as the company name (for example, Smith Pty Ltd).
What’s a Company Name?
A company is an independent legal entity registered with ASIC. Because of that it has its own name, which must include its legal identity (such as Pty Ltd or Ltd). A company can also legally act as a natural person, meaning it can do things like enter into legal contracts. Understanding this is important, because a company name is about much more than just the name. It’s about the company structure.
It’s important to be sure of the business structure that’s right for your situation. This could be as a company, of course. But it could also be as a sole trader, a partnership or even a trust.
If you need some advice on making this decision, we can help guide you through the process. The federal government’s Business Registration Service is a great place to start too.
Read more: Do I Need to Register a Company?
Business name vs company name
It’s important to be aware that companies can have both their legal company name as well as a business name under which they run their business (or trade as).
The key difference between a business name vs company name, is that the:
- Registered business name is the name under which a business operates.
- Company name is a separate legal entity that may operate the business.
For example, a florist business may be called ‘Sweets & Flowers’ but the company that operates it is ‘Sweets & Flowers Pty Ltd’.
If you decide you want to have a business name in addition to your company name, you must register a business name to carry on a business under that name. Otherwise you will be required to use the legal designation (such as Pty Ltd) of the company name.
Read more: 10 Questions To Ask When Starting A Business
How to Register Using EasyCompanies
Whether you want to register a business name, a company name or get an ABN, at Easy Companies, we can help.
Register for an ABN
Anyone can apply for an ABN as long as you are an Australian resident for tax purposes and hold a current tax file number. Setting up an ABN is easy.
- Gather your information. You’ll need your TFN (Tax File Number). You will also need your business name, main business activity and email address. If you’re a partnership you’ll also need the names of all the partners and their TFNs, and if you’re a trust the names of all the trustees and their TFNs.
- Fill in the online ABN application form. The process should take less than 10 minutes.
- Your ABN is on its way to you, sometimes within 10 minutes.
How to register a business name
Step 1: Choose a business name
Step 2: Check to see if your business name is available
Step 3: Compile your information.
- Business name
- ABN (Australian Business Number)
- Address of business
Step 4: Complete our simple business registration form.
How to register a company
Step 1: Choose a company name
Step 2: Check to see if your company name is available
Step 3: Compile your information. You will need:
- Company name
- At least one director who must be located within Australia
- At least one shareholder (individual, trustee or company)
- Personal details for the directors and shareholders
- A physical Australian address (can be your home address)
Step 4: Complete the online company registration form (it takes approximately 10 minutes to complete and you can save and resume at any time)
Step 5: Receive your ACN (Australian Company Number) and other documents within two to three minutes!
Get in touch!
At EasyCompanies our experts are here to help with expert ABN, company and business registration services. Get in touch to get started today.
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