Trading Name vs Business Name vs Company Name: What Are the Differences?

Trading names, business names and company names are all used to identify businesses. However, there are important differences between each of these.

In most instances, Australian legislation requires business owners to register their business names on the Business Names Register. There are some exceptions to this requirement, which for example, where the business is operated under the name of the legal owner.

Below we discuss the differences between a Business Name, Trading Name and Company Name and the requirements pursuant to Australian legislation.

What is a Business Name?

A business name is the name under which a business is operated. In Australia you are required to register your business name with the Australian Securities and Investments Commission (ASIC) on the Business Names Register unless you trade under your own name or fall within another exemption. The Business Names Register records business names together with the entity that owns and operates the business.

For example, if the company, ABC Company Pty Ltd operates the business “Learning For You”, then “Learning for You” must be registered as a business name on the Business Names Register.

What is a Trading Name?

Trading names are names under which a business was operated prior to 28 May 2012 – being a time where it was not a requirement that a business owner register their trading name on public record.

The Australian Business Register has collected and recorded names used by entities to carry out their business, however, importantly, from November 2023, trading names will no longer be displayed on the register. As such, if your trading name is not presently registered as a business name, the name does not meet the requirements pursuant to Australian law and must be registered with ASIC on the Business Names Register.

What is a Company Name?

A company name is the name of a corporate entity, which is registered with ASIC. A company name must include the words “Pty” and “Ltd” at the end of the name (where relevant). As mentioned above, a business is able to trade under its company name without the need to register the name on the Business Names Register, however, the business must trade under the full and complete name, including “Pty Ltd” at the end of the name. 

For example, if “ABC Company Pty Ltd” wishes to operate the business under the name “ABC Company Pty Ltd” then there is no need to register the name on the Business Names Register, however, if “ABC Company Pty Ltd” wishes to operate the business under the name “ABC Company” then it will need to register the name on the Business Names Register.

What is an Entity Name?

An entity name is the legal name of an entity. For example, the name of a Company, a person as a Sole Trader, two people as a Partnership etc. 

As noted above, if the name for which the entity wishes to operate the business is different to the full and complete name of the legal entity, then the legal entity will be required to register the business name on the Business Names Register.

Do I Own My Trading Name?

A registered business name grants you the ability to operate the business under the relevant registered name. It is important to note that registering a business name does not necessarily grant a business exclusivity to use that name.

If a business requires protection and exclusivity with respect to a name, then the business will need to apply for a trademark in respect of the name.  Registering a business name as a trademark will help in preventing other businesses from imitating the trademarked brand. 

Where Do I Register My Business Name?  

Business Names must be registered with ASIC on the national Business Names Register. Once registered, the business name will be valid for all States and Territories. Ongoing fees will apply to keep a business name registered.

Not all business names are available for registration, as such it is important to undertake a search of the Business Names Register prior to proceeding with the application.

You cannot update a business name once it is registered with ASIC, as such, if you wish to trade under a different or varied business name, you must register a new business name on the Business Names Register.

Wrapping Up

If you have any questions regarding the information above, please feel free to reach out to one of our business law experts.