Business Name vs Company Name
Though, there are clear cut rules and regulations pertaining to both business name and company name in Australia, many still think of both being same because of similarity in names of these two terms. However, the fact is that a company name is different from a business name and the differences between these two names will be clearer after reading this article.
Having a simple yet meaningful name is essential for any business. However, it has to be seen that a common man understands what the business entity deals in. The destiny of a business’ future depends a lot on the name it is given by the owners. Right name is what creates the right image and right image translates into success. Remember, a unique name is what gives a business an identity that distinguishes the products and services of the business from its competitors.
The name under which a business operates is known as its business name. It can be the name of the individual owning the business or any other name, but the fact is that one needs to get the name registered in the state or territory before starting the business. Having a unique name for the business helps the business to generate more sales as clients and prospective customers identify with the name as well as owners of the business. When a business operates in more than a single state, the name has got to be registered with every state and this is a process that needs to be completed before the start of the business.
It is not always that an entrepreneur stars a commercial activity with a business name. Sometimes, establishing a company is more prudent for both the starting as well as taxation purposes. A company name is registered with Australian Securities and Investment Commission (ASIC), and not Australian Business Register, which registers business names.
It has to be understood that neither a business name nor a company name guarantees protection from misuse by any other individual or company. For legal protection from misuse, it is necessary to get a trade mark or trading name, which becomes an identity of the company. It can be anything from the name of the company to a letter, a logo, a design, a sound or even a text that cannot be copied by any other company, and which remains the sole property of the owner of the trade mark.
What is the difference between Business Name and Company Name?
• A business name is a must before starting a business in Australia, and this name has got to be registered with the Australian Business Register (ABR) in the state or territory where one plans to operate
• If it is in the form of a company that a person wishes to start commercial activities, it is the company name that needs registration, and this is done through Australian Securities and Investment Commission (ASIC)
• Real protection for a business name or a company name comes when one gets a trade mark registered in the name of the business or company.