New national business name registration system0comments
Under the current system, businesses that operate in a name other than their own name or company name are required to register their business name in each state and territory that they trade in.
The National Business Names Registration System will abolish existing state-based registration systems and legislation to permit businesses to register their names Australia-wide with a once-off online national application.
An ABN will now be required in order to register a business name. To make this process easier, a joint application for an Australian Business Number (ABN) and national business name will be available.
The new scheme will be administered and managed by the Australian Securities and Investments Commission (ASIC). Existing state and territory registered business names will be automatically transferred onto the national system without the need to fill in any forms. If you have multiple registrations for a business name across various states and territories in Australia, they will be each transferred over to the new system where you have the option of merging them into a single national registration. Business name registrations must be valid on 28 May 2012 for the automatic transfer to the national system to take place otherwise the registration will lapse. Therefore, it is essential that you ensure your registration is valid up to the changeover date.
If a business has registered a name in one state and there is an ‘identical’ or ‘nearly identical’ business name that is registered in another state, ASIC will add information to the national register which will allow the public to differentiate between identical business names. This additional information will not form part of a business name.
The registration fee will be $30 for one year and $70 for three years. This is a huge cut in costs for businesses as registering a name in each state and territory under the current system can cost more than $1,000.
As it was previously, business name registration will not grant the owner any proprietary rights in a trade name. To ensure you have a monopoly in a name or brand used in relation to your businesses’ goods and services, trade mark registration must be sought. A registered trade mark will allow the owner to enforce their rights against any registered business names under the new systems which are substantially identical or deceptively similar to their registered mark.
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