Registering Your Business
What’s the difference between Company vs. Business names?
In the case of a Company
A Company is a separate legal entity (think of it almost as a person), so when you register a Company with ASIC, you will automatically be given a Company Name of your own choosing. As this Company Name identifies the Company as a Legal Entity, it must include the legal terms/abbreviations ‘Pty Ltd’ or ‘Pty Limited’ etc (you are free to choose the spelling of the legal terms).
A Business Name is different to a Company Name in that it is registered after the Company Name (at an additional cost). Business names
- Do not need to contain the legal terms/abbreviations ‘Pty Ltd’ or ‘Ltd’ etc.
- Do not need to resemble your Company Name
The two reasons for registering a Business Name are:
- Dropping the legal terms/abbreviations ‘Pty Ltd’ or ‘Ltd’ etc
- Using a Business Name completely different to your Company Name
Examples
| Description | Company Name | Business Name |
| Company with Business Name (dropped abbreviation) | Tip Top Pty Ltd | Tip Top |
| Company with Business Name (different Business Name) | Bookshelf Pty Ltd | Books and Shelves |
| Company without Business Name | Tabletop Pty Ltd | Tabletop Pty Ltd |
In the case of a Sole Trader or Partnership
A similar logic is used here. Sole Traders and Partnerships are automatically given names upon registration according to their Legal (Personal) Names. They can then choose to register a Business Name if they wish to trade under a Name that is different to their Legal (Personal) Names.
Examples
| Description | Legal Name | Business Name |
| Sole Trader with Business Name | Alan Briggs | Alan Brigg’s Plumbing |
| Sole Trader without Business Name | Alan Briggs | Alan Briggs |
| Partnership with Business Name | Alan Briggs and Autumn Spencer | Alan and Autumn’s Plumbing |
| Partnership without Business Name | Alan Briggs and Autumn Spencer | Alan Briggs and Autumn Spencer |
July 08, 2016 10:54