A deadline is approaching – don’t miss out!
If your business has a ‘trading name’ and the goodwill of your business associated with it – IT WILL DISAPPEAR FROM 1 NOVEMBER THIS YEAR!
That’s right! Trading names will no longer be recognised and will be removed from the National Business Names Register from the end of October this year. Businesses are now required to register a business name when they want to trade under a name other than their legal entity name.
Let’s start at the beginning, or rather 28th May 2012. This is the date that the National Business Names Register came in to being. Prior to this date business and trading names were registered by the states. A transition period from 28 May 2012 to 31 October 2018 is in place to allow businesses who have trading names to decide whether to register them as a ‘business name’.
So what is a ‘trading name’ versus a ‘business name’?
According to the Federal Government a ‘trading name’ refers to an unregistered name that businesses could use before the introduction of the National Business Names Register. A trading name is NOT a registered business name.
Businesses are now required to register a business name when they want to trade under a name other than their legal entity name. A registered business name helps customers find, identify and connect with your business. You can have multiple business names linked to your one ABN. When you come to sell your business some of the goodwill value will be in the business name, logo, reputation etc. You do not want to find out at the point of sale that you don’t have the business name registered.
As a business owner, what should you do?
- Check what business or trading names are currently attached to your ABN. This is very simple to do. Go to ABN Lookup and put your ABN in the search box. It will then display your business details and list any business or trading names associated with that ABN.
- Decide what ‘trading name(s)’ you want to keep.
- Now register your ‘trading name’ as a ‘business name’ and the best place to start is Register Business Name
REMEMBER: To continue using a trading name after October 2018, you have to register it as a business name.
For more information about trading names, business names and legal names, go to LEARN MORE
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