Business Name vs Trading Name
When you are doing business in Australia in particular, and anywhere in general, two names matter a lot. First is the business name, which is the identifying factor as your clients and prospective customers know you and your products and services with this name. Sometimes people continue to do business with their own name, which is permissible, but do not give a unique identity to their business. But, when a unique name is given to the entity, it helps to distinguish the goods and services provided by your business from the competitors, and it is this name that is responsible for generating more sales by recognition. There is another name called trading name, which is confusing for many as sometimes both business name as well as trading name are same. But trading name becomes essential to safeguard your business from copycats and those who can cause harm to the business. Let us find out differences between business name and trading name.
When one starts with a business name, it is not known to what heights business will grow. It is only when the business becomes very successful and leading in its segment that entrepreneur or partners decide to have a trading name for better protection and legal shield for their business. This is also known as trade mark and may or may not be the same as business name. It happens so that one may not get registration for the business name as it gets registered by some other person, which is why companies have to get registered some other name as their trademark or trading name. The trade name has to be checked with the registers of the registrar to see its availability.
It becomes clear then that before adopting a business name, one should check if the name has already been registered with the registrar or not as in future the business name cannot become trading name of the company as it has already been registered by some other comp-any or individual.
What is the difference between Business Name and Trading Name?
• A business name is the name under which a business operates, and gives it a unique identity. This name has to be registered with Australian Business Register of the state or territory where the business operates. This formality is a must before the start of business activities.
• Trading name is the name that is also called trade mark of the company, and provides protection against misuse by any other individual or company.
• Once registered, no one else can make use of the trading name and if lucky, a business may get the same trading name as its business name.