What Does “Trading As” Mean? How Trading Names and Business Names Work in Australia

Last updated: 23 November 2024

What Does “Trading As” Mean? – In this guide, we cover everything you need to know about “trading as”, trading names, and business names. The implications for your business and the practical steps to register and manage them.

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If you still have a question after reading this legal guide, get in touch, as we’d love to keep adding your questions to this comprehensive guide.

Introduction to Trading Names

What does “trading as” mean?

The phrase “trading as” is used when a sole trader, Pty Ltd company or partnership operates under a name different from its registered legal name. This means the business’s trading name for commercial activities differs from its legal entity name.

For example, XYZ Enterprises Pty Ltd might be “trading as” XYZ Building Supplies. This means that XYZ Building Supplies may be the brand or trading name, but XYZ Enterprises Pty Ltd is the legal entity name for contract purposes.

When do I use “trading as”?

You use “trading as” when you want to operate your business under a name different from its legal entity name. This includes your website and website name! If it is not your own name or your Pty Ltd company name, it needs to be registered, as it is considered a business name you are trading under.

You may decide XYZ Building Supplies is a more targeted and marketable name than XYZ Enterprises Pty Ltd. If you were searching for a building supply store and saw signage reading “XYZ Enterprises Pty Ltd”, you might be unsure of the products or services offered and potentially overlook the store. By using the trading name XYZ Building Supplies and the website XYZ-building-supplies.com.au, the business communicates its purpose, helping attract the right customers and improve market visibility.

How do I abbreviate “trading as” correctly?

“Trading as” is correctly abbreviated as T/A or t/a. When creating business documents, it is common practice to include both your business name and trading name, for example: “XYZ Enterprises Pty Ltd t/a XYZ Building Supplies”.

How are trading name, business name and company name different?

A trading name is an old term used before 2012 to describe a name under which a business operates that differs from its registered legal name. Trading names are no longer recognized unless registered as business names with the Australian Securities and Investments Commission (ASIC).

A business name is the name a business uses to trade or operate, and it must be registered with ASIC unless it’s the owner’s exact legal name. However, a business name is not a legal entity – it cannot enter into contracts, sue, or be sued.

A Pty Ltd company name is the legal name of a registered company. It is a legal entity in its own right, meaning it can enter into contracts, sue, and be sued. For example, “XYZ Enterprises Pty Ltd” might use a business name like “XYZ Building Supplies” to trade, which would be shown as “XYZ Enterprises Pty Ltd t/a XYZ Building Supplies.”

Using Trading Names in Practice

Can a sole trader use a trading or business name?

Yes, a sole trader can use a trading name for their business. If you’re a sole trader wanting to trade under a business name other than your own personal name, you must register your business name with ASIC.

Can a Pty Ltd company use one or more business names?

Yes, a Pty Ltd company can use multiple business names provided they are registered to the Pty Ltd company with ASIC. Utilising multiple business names enables a business to operate under different brand names for various products and services while maintaining a single legal company structure.

For instance, Grant Innovations Pty Ltd might trade under names such as GoGreen Solar and GoGreen Tech Consulting to reflect its diverse business lines. This strategy helps target specific markets and enhance brand recognition across different sectors.

Do I need a separate ABN for each business name?

No, you do not need a separate Australian Business Number (ABN) for each trading name. A single ABN is typically attached to the business name’s legal entity (e.g. a Pty Ltd company). The ABN can be used for multiple business names under the same legal entity. The ABN belongs to the legal entity owning the business name; the business name does not own the ABN.

Do I need to include “trading as” on my business documents?

Yes, if you use your business name to sell your goods or services, you must include “trading as” in your business documents with your ABN.

Do I need to include “trading as” on my website?

Yes, we advise clients to place this information in the footer of their websites, where users typically look for company details. This placement ensures visitors can quickly identify the legal entity behind the business.

Branding and Marketing Implications

How does a business name affect my branding and marketing?

A business name can significantly influence your branding and marketing strategies by offering your business a distinctive and memorable identity. Using a business name in your advertising allows you to tailor the name to align with your target audience, enhancing your brand’s visibility and appeal. For example, a trading name that reflects your business’s products or services can make your brand more recognisable, memorable and attractive to potential customers.

Why do I need to register a business name?

Whenever you use a name for your business that is not your own personal name or when it is not your Pty Ltd company name, including any website name, you are required to register the business name with ASIC. This is to ensure consumers are aware of who they are contracting with legally, as a business name is not a legal entity and cannot, on its own, sue and be sued or enter contracts.

Do I need to trademark my business name?

It is essential to know that registration of a business name with ASIC does not protect the brand. Other businesses can have the same name, provided they are offering different goods and services. For example, Dove Chocolate and Dove Soap are two brands with the same business name.

Register your brand name, logo, and tagline as trademarks to ensure brand protection and that no one else uses your name for a similar business.

Can two businesses have the same trading name?

Yes, two businesses generally can have the same business provided they offer different goods or services and do not cause confusion among consumers in the marketplace. For example, Apple Records has been around since 1968 (formed by the Beatles), and Apple is also a company that sells mobile phones and computers.

What happens if someone else registers my business name?

If someone else registers your desired business name, you may face challenges using that name, including potential legal disputes, unless you are in entirely different markets. It is critical to check a business name’s availability before registration.

Protect your brand and business by registering the name as a trademark with IP Australia. With trademark registration, no other business can conduct similar business using your name.

See our legal guide: How to Trademark Your Business Name and Logo

Legal and Regulatory Considerations

Can I use a business name without registering it?

It is an offence to carry on business under an unregistered business name unless you are a sole trader trading under your own personal name. If you do, you are breaching the Business Names Registration Act 2011 (Cth), and you may be subject to both fines and penalties. This includes your website name, which is your business name.

What are the penalties for using an unregistered business name?

Using an unregistered business name can result in penalties, including fines and legal orders to stop using the name. In some cases, non-registration of your business name can also lead to your company being prosecuted.

Federal penalties could be as much as $8,250. State penalties vary from $3,300 in NSW to $5,900 in VIC. Business names only cost $102 to register for 3 years – so don’t take the chance!

Are there any restrictions on the words I can use in my business name?

Yes, certain words in business names are restricted to ensure they are not misleading or offensive and comply with legal standards. For instance, names must not include restricted terms like “bank” or “insurance” without appropriate licensing or approvals.

Check with the Australian Securities and Investments Commission (ASIC) or relevant state authorities to ensure your chosen name complies with these regulations.

Managing Your Business Name Registration

How do I register a business name in Australia?

There are two options to register a business name in Australia:

• Australian Securities and Investments Commission (ASIC)
• Australian Government’s Business Registration Service

The process involves completing an application form, providing details of the trading name, and paying a registration fee. This process officially recognises your trading name and provides legal protection.

How do I check if a business name is already in use?

You can check if a business name is already in use by searching on the Australian Securities and Investments Commission (ASIC) website or through the relevant state or territory business registry. These databases help you verify whether your desired trading name is available or another business has registered it.

You should also check the internet for businesses and business names already in use in Australia to see if your products and services will overlap or confuse consumers. Changing business names later can be expensive, so get it right the first time.

How do I update my business name registration details?

You can set up an account with the Australian Securities and Investments Commission (ASIC) website to update your business name registration details. This process typically involves submitting a change of details form and paying a fee. Keeping your registration details current is essential to ensure that your business records are accurate and up to date, which is a legal requirement.

Can I change my business name after registering it?

Yes, you can change your business name after registering it. To do so, you must cancel the existing registration and submit a new application for the new business name. This process ensures that your new business name is officially recognised and protected, which is required before use.

How much does it cost to register a business name?

The cost to register a business name varies depending on the registration period you choose. As of 2024, ASIC charges $44 for one year and $102 for three years.

How long does the registration process take?

The registration process for a business name typically takes a few days. However, it may take a few weeks in some cases, depending on the efficiency of the processing authority, how busy the service is and whether there are any issues with the application.

How often do I need to renew my business name registration?

In Australia, trading name registrations generally need to be renewed every one to three years, depending on how long you have paid for registration. Keeping track of renewal dates is vital to avoid registration lapses, which can lead to issues using your business name and potentially losing that particular business name.

Can I transfer my business name to another business?

Yes, you can transfer a trading name to another business. To do so, you’ll need to follow these steps:

1. Cancel the business name: Begin by submitting a cancellation form to the Australian Securities and Investments Commission (ASIC). Ensure you select the option to transfer the business name to another entity.
2. Consent to transfer number: You should receive a transfer consent number from ASIC. Give this number to the new business name owner.
3. New owner business name registration: The new business name owner then uses the transfer number to register the business name in their name.

We hope you found this article on trading names, business names and ‘What Does “Trading As” Mean?’ helpful.

About the Author: Vanessa Emilio

Vanessa Emilio (BA Hons, LLB, ACIS, AGIA) is the Founder and CEO of Legal123.com.au and Practice Director of Legal123 Pty Ltd. Vanessa is a qualified Australian lawyer with 20+ years experience in corporate, banking and trust law. Click for full bio of Vanessa Emilio or follow on LinkedIn.

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