In mid-2012, ASIC will manage and administer a new national business name registration service in Australia. This forms part of a new whole-of-government program that will introduce initiatives to reduce red tape, save time and cut costs for business.
Businesses need to register a business name if they carry on a business or trade within Australia and are not trading under their own entity name. An entity name may be an individual’s name, partners’ names or a company name. This is so that consumers can easily identify the person(s) or company behind a business (trading) name through a public register. Currently business names are registered in each State or Territory a business trades in. It is proposed that a new national system for business name registration will start in the first half of 2012. The new national system is a Council of Australian Governments initiative in which the States agreed to refer their business names registration powers to the Australian Government.
The new national business name registration service will mean that businesses no longer have to register their business name in every State and Territory they wish to trade in. The new service will replace the current State and Territory systems and businesses will be able to apply to register a national business name online and in most cases receive confirmation of their registration immediately. This would seem to be an efficient and ideal way for the government to control, monitor and maintain business data through one agency.
A joint online application for an Australian Business Number (ABN) and national business name registration will also be available to streamline the establishment of a new business. The business name and ABN are two of the most common registrations undertaken for business start-ups.
THE NEW SYSTEM – The proposed changes to business name registration are;
- Business names will be registered nationally, thus there will no longer be a need to register in each state a business trades in.
- There will be lower fees for registration and renewal and options for on or three-year registration periods.
- Businesses will be able to apply to register a national business name online and receive confirmation of their registration at the same time.
- The business name registration will also be available as a joint online registration in conjunction with the Australian Business Number (ABN) registration with pre-filling from one registration to the next.
- There will be information on and links to the trade make and domain name searches.
- New Businesses will need to have an ABN or be in the process of applying for an ABN and not have been refused an ABN in order to register a business name.
It is proposed that business name registration fees will be in the order of $30 for a one year registration period and $70 for a three-year registration period. Renewal of the national business name registration is proposed to be in the order of $30 for a one year registration period and $70 for a three-year registration period. A payment advice and a Business Name Extract will be supplied by ASIC to confirm registration.
Previously, different States and Territories each had different fee structures and different options for registration periods. On commencement of the new national business names registration system, Businesses will pay a lesser fee and in some cases significantly less. Currently business names fees in certain States can be as high as $248.20 or $156.00 for three years. These savings for business are primarily due to efficiency gains related to rationalising the delivery of eight services to one and from a new online system.
It would seem that the new business name registration system will be a positive for Australian businesses to reduce fees and paperwork provided that ASIC are able to manage the process much like they do with Company registrations.
If you need help with your company or business names please contact us http://shelcom.com.au or email gabriel@shelcom.com.au