The Australian government has announced plans to invest in a national business name and Australian Business Number (ABN) registration system to replace the current state/territory-based business name registration regime, according to Joanne Martin, a partner at FB Rice & Co. Martin says the new system, which could take effect from April 2011, would allow businesses to register one time and pay a single fee to register their business names nationally.

“Under the national system, new businesses will be required to hold an ABN in order to apply for a business name,” Martin says. “It will be possible to register for an ABN and a business name concurrently. The business name registration will be instantaneous.”

Martin says that businesses which do not hold an ABN will be able to apply for a business name, with the application remaining pending until the approval of the ABN.

As is currently the case, certain business names will not be registered, Martin says, noting that if the name “is identical or nearly identical to an existing registered company or business name, the name is offensive, the name suggests a connection with the government, the name contains unacceptable characters, such as foreign language characters, or the name contains restricted words that require approval from a specific body such as ANZAC.”

However, Martin says, a business name need differ only in a minor way from a prior business name or company registration in order to be eligible for registration. “Under the business name rules, Jo’s Emporium and Jo’s Emporium Sydney may be registered by different businesses,” she says.

“Registration of a company or business name is often the first step in the start-up phase for businesses,” Martin advises. “While this step is necessary, it is critical to recognize that a company or business name registration does not protect that name or provide any proprietary rights. It is a common misconception that business and company names are ‘the same thing’ as trade marks. They are quite different.”