What's the Difference Between Trading Name vs Business Name?

Running a business in Australia requires legal compliance, and one of the most critical yet confusing aspects is understanding business names and trading names. 

Many business owners still use the term “trading name”, but as of 2023, trading names are no longer legally recognised.

If you’re still operating under an old trading name, you must register a business name to ensure your business is legally recognised and compliant with Australian business laws.

But what exactly is the difference between a trading name and a business name? Why were trading names phased out, and what should you do if you’re still using one?

Let’s find out below!

What is a Trading Name?

A trading name was an informal name a business could use before 2012 without having to register it with a national authority. 

This meant that businesses could operate under names that were not officially recorded anywhere except in the Australian Business Register (ABR).

Example of a Trading Name (Before 2012)

Let’s say you were a sole trader named John Smith, running a plumbing business. Before 2012, you could operate as:

🚰 John’s Plumbing (without registering the name)

📄 Your invoices and marketing could use this name without official registration, as long as you had an Australian Business Number (ABN).

Why Were Trading Names Phased Out?

The problem with trading names was that they were not legally protected or unique. 

Several businesses could operate under the same name, creating confusion and potential legal disputes.

To solve this, the Australian Government introduced the National Business Names Register on May 28, 2012. 

This required all businesses to register their names with ASIC (Australian Securities and Investments Commission).

Key Changes to Trading Names

📌 Trading names were no longer legally recognised after May 28, 2012.

📌 Businesses using trading names had to register a business name with ASIC.

📌 As of October 31, 2023, trading names were completely removed from the ABR.

This means that if you’re still using an unregistered trading name, it no longer legally exists, and you may face legal consequences.

What is a Business Name?

A business name is an official name that a business must register if it operates under a name different from its legal entity name. Unlike trading names, business names:

✔ Must be registered with ASIC

✔ Are legally recognised and recorded

✔ Provide public transparency

✔ Allow customers to verify the legitimacy of a business.

Example of a Business Name

If John Smith registers “John’s Plumbing” as a business name with ASIC, he can legally operate under that name and be listed on the ASIC Business Name Register.

Who Needs to Register a Business Name?

✅ Sole traders, partnerships, or companies using a name other than their legal name

✅ Businesses advertising, invoicing, or branding under a different name

✅ Anyone opening a business bank account (banks require proof of registration)

Who Does NOT Need to Register a Business Name?

🚫 If you operate under your own legal name (e.g., John Smith Consulting)

🚫 If your business name is the same as your registered company name.

Key Differences Between Trading Names and Business Names

Why You Need to Register Your Business Name

If you haven’t registered your business name, you risk legal and financial complications. Here’s what could happen:

🚨 Legal Penalties: ASIC enforces business name registration, and failure to comply could result in fines.

🚨 No Business Bank Account: Most banks require proof of registration before opening a business account.

🚨 Branding & Trust Issues: Without registration, customers may question the legitimacy of your business.

🚨 Risk of Name Theft: Another business could register your name first, leaving you with no legal claim to it.

Bottom Line: If you want to operate legally and protect your business identity, registering your business name is a must.

How To Register a Business Name in Australia

If you need to register a business name, follow these steps:

Step 1: Check Business Name Availability

Before registering, check whether your desired name is available using the ASIC Business Name Search.

Step 2: Get an Australian Business Number (ABN)

You need an ABN to register a business name. If you don’t have one, apply through the Australian Business Register.

Step 3: Register Your Business Name with ASIC

Do You Need a Trademark for Your Business Name?

🔹 Registering a business name does NOT give you exclusive rights to the name.

🔹 If you want full legal protection, you need to trademark your business name through IP Australia.

Why Register a Trademark?

✔ Exclusive Rights – Prevents competitors from using your name.

✔ Brand Protection – Avoids costly legal battles.

✔ Stronger Market Presence – Adds credibility and trust.

How to Register a Trademark in Australia

1️⃣ Search the IP Australia database for existing trademarks.

2️⃣ File an application through IP Australia.

3️⃣ Pay the trademark application fee.

4️⃣ Once approved, your name is legally protected.

Final Thoughts: Secure Your Business Name and Stay Compliant

If your business has been using an old trading name, it no longer holds any legal status. Without it, you may run into issues with banking, contracts, and customer trust.

📌 Check if your name is legally registered – The Australian Business Register no longer displays trading names. If your business isn’t listed on ASIC’s register, it isn’t officially recognised.

📌 Register your business name as soon as possible – Operating under an unregistered name can cause complications, including fines and lost opportunities.

📌 Consider trademarking your name – Business name registration doesn’t stop others from using a similar name. A trademark offers legal protection.

📌 Stay on top of renewals – ASIC requires business names to be renewed every one or three years. Letting it expire can put your business at risk.

How ANNA Makes Business Name Registration Easy

Registering a business name with ASIC can sometimes feel overwhelming, especially if you're also handling accounting, invoicing, and tax obligations. ANNA simplifies the entire business registration process, providing a one-stop solution for new and existing business owners in Australia.

Why Register Your Business Name with ANNA?

ANNA doesn’t just help you register your business name – it provides a complete financial and administrative solution for business owners. Here’s what you get:

✔ Instant Name Availability Check

Before registering your business name, ANNA allows you to quickly check if your desired name is available using our Name Checker tool. Simply enter the name you want, and ANNA will verify its availability instantly.

✔ Effortless Registration Process

ANNA takes care of the entire registration process, making it quick and easy. Once registered, you can set up your business account immediately, so you can start trading without delay.

✔ Free Company Registration & Business Banking

With ANNA, you don’t just register a business name, you get a fully integrated business account that handles:

✔ Transparent Pricing & No Hidden Costs

ANNA offers simple, budget-friendly pricing plans designed to suit different business needs: 📌 Company registration & business name registration—$576 (Free with ANNA’s promotional offer)

✔ Automated Bookkeeping & Financial Insights

ANNA’s all-in-one platform helps you stay on top of business finances:

✔ 24/7 Business Support from Experts

Unlike traditional business banks, ANNA provides dedicated support from accountants and financial experts, answering any questions related to:

Ready to Register Your Business Name?

If you’re looking for a quick, hassle-free way to register your business name and manage your finances, ANNA Money offers the best solution.

🌟 Check your business name availability, register your company, and handle your tax and bookkeeping – all in one place.

Get started with ANNA today and take the stress out of business administration!

FAQ

What Happens If I Don’t Register My Business Name?

You could face legal penalties, brand identity issues, and difficulties opening a bank account.

Can Two Businesses Have the Same Business Name?

Yes, because a business name is not the same as a trademark. Multiple businesses can register the same name, but only a trademark owner has exclusive rights.

Can I Still Use My Old Trading Name?

Only if you register it as a business name with ASIC. Otherwise, it no longer exists legally.