In the case of a Company
A Company is a separate legal entity (think of it almost as a person), so when you register a Company with ASIC, you will automatically be given a Company Name of your own choosing. As this Company Name identifies the Company as a Legal Entity, it must include the legal terms/abbreviations 'Pty Ltd' or 'Pty Limited' etc (you are free to choose the spelling of the legal terms).
A Business Name is different to a Company Name in that it is registered after the Company Name (at an additional cost). Business names
- Do not need to contain the legal terms/abbreviations ‘Pty Ltd’ or ‘Ltd’ etc.
- Do not need to resemble your Company Name
The two reasons for registering a Business Name are:
- Dropping the legal terms/abbreviations ‘Pty Ltd’ or ‘Ltd’ etc
- Using a Business Name completely different to your Company Name
|Description||Company Name||Business Name|
|Company with Business Name (dropped abbreviation)||Tip Top Pty Ltd||Tip Top|
|Company with Business Name (different Business Name)||Bookshelf Pty Ltd||Books and Shelves|
|Company without Business Name||Tabletop Pty Ltd||Tabletop Pty Ltd|
In the case of a Sole Trader or Partnership
A similar logic is used here. Sole Traders and Partnerships are automatically given names upon registration according to their Legal (Personal) Names. They can then choose to register a Business Name if they wish to trade under a Name that is different to their Legal (Personal) Names.
|Description||Legal Name||Business Name|
|Sole Trader with Business Name||Alan Briggs||Alan Brigg's Plumbing|
|Sole Trader without Business Name||Alan Briggs||Alan Briggs|
|Partnership with Business Name||Alan Briggs and Autumn Spencer||Alan and Autumn's Plumbing|
|Partnership without Business Name||Alan Briggs and Autumn Spencer||Alan Briggs and Autumn Spencer|