Registering a business name with ASIC: when you need one and what it does not protect

When you need to register

You generally need to register a business name if you trade under a name that is not your own personal name. Your own name means your first name and surname as they appear on your ABN record, or your full name in the way the law allows. Add anything extra, such as a trade word, and it is a business name.

So "Jane Smith" and "J Smith" are usually fine as they are, but "Jane Smith Plumbing" or "Smith & Co" is a business name once you add a word that is not part of your personal name. If you are unsure, ASIC has a decision tool on its site.

What registration gives you, and what it does not

Registering a business name means ASIC records that you are using it and publishes it on a public register. It lets you open an account and trade under the name legally.

It does not stop anyone else from using a similar name, and it does not give you any ownership of the brand. It is also not a business structure. A sole trader who registers a name is still the same legal person, personally responsible for everything the business does, with no change to tax or liability.

How to register

You need an ABN first, because the registration is linked to it. Registration is done through ASIC’s online business registration service. Typical steps are:

• check the name is available by searching ASIC’s register
• apply online and choose a one or three year registration period
• pay the fee, which ASIC sets and which depends on the period
• receive confirmation by email, often quickly when the application is simple

ASIC’s guide explains what names are refused, such as ones identical to an existing name or that suggest a government connection.

Your ABN, your name and your domain

Your business name goes on your ABN record, and you must put it in the right place on invoices, which should still show your ABN. See tax invoice requirements. A domain name is not the same thing. A .com.au domain is issued separately and requires an ABN or a registered name connection, but owning a domain gives you no right to the matching business name, and the reverse is also true.

Trade marks are the real protection

If the name matters to your brand and you are worried about someone copying it, a trade mark is the tool to look at. It is registered through IP Australia, covers the goods and services you choose, and gives you an enforceable right that a business name does not. It costs more and takes longer. For most small sole traders, the sensible order is to register the name, build the brand, and consider a trade mark once the name is worth defending.

Renewing and changing

Registration lasts for the period you chose and has to be renewed. ASIC emails a reminder, but those go to the contact address on file, so keep it current. If you let it lapse, you lose the right to use the name and someone else can take it. If you change the name, you register the new one and cancel the old one, and update your ABN, invoices, website and bank account to match.

Is the fee deductible?

Generally yes. The registration and renewal fees are a cost of running the business and are deductible in the year paid, though a long registration period may need to be spread. The cost of a trade mark application is usually a capital item rather than an immediate deduction. Ask your accountant if the amounts are large. See sole trader tax deductions.

How FlowFi helps

FlowFi sorts registration and renewal fees on your bank statement into the right category, and lets you put your business name and ABN on invoices. It does not register names or check availability; that is done with ASIC.