If you’re starting a business in Australia, it’s important to understand the distinction between a company name and a business name. These two terms are often confused, but they serve very different legal and administrative purposes.
In this guide, we’ll break down the differences, show when you need one or both, and explain how to register them correctly—so your new venture starts on solid ground.
What Is a Company Name?
A company name is the legal name of a company that is registered with the Australian Securities and Investments Commission (ASIC). When you register a company in Australia, you’re creating a separate legal entity—meaning the company can own assets, enter contracts, and be held liable independently of its owners or directors.
Company names typically end in terms like “Pty Ltd” or “Limited”, indicating limited liability status. For example, Koala Tech Pty Ltd is a registered company name.
Need to register a company? Start here: Company Registration Services
What Is a Business Name?
A business name is the trading name under which a sole trader, partnership, or company conducts business. Registering a business name does not create a new legal entity—it simply allows you to operate under a name other than your personal name or company name.
For example, if your legal entity is Koala Tech Pty Ltd, you might register Koala Repairs as a business name to market your services under a more consumer-friendly name.
Want to register a business name? Get started here: Business Name Registration Services
Key Differences Between Company Name and Business Name
| Feature | Company Name | Business Name |
|---|---|---|
| Legal Entity | Yes – separate legal entity | No – trading name only |
| Registered With | ASIC | ASIC |
| Liability Protection | Yes – limited liability | No – relies on underlying entity |
| Can Operate on Its Own | Yes | Only with an ABN |
| Can Have Multiple | One per company | Yes – one entity can have several business names |
| Example | Koala Tech Pty Ltd | Koala Repairs |
Do I Need Both a Company Name and a Business Name?
It depends on your business structure and branding strategy:
- Sole Traders: Must register a business name if trading under a name other than their personal name.
- Companies: Can trade under their company name, but may also register one or more business names for marketing or operational purposes.
For example, Greenleaf Holdings Pty Ltd may operate multiple services under names like Greenleaf Gardens and Greenleaf Supplies, each registered as a business name.
Which Should You Register First?
If you’re just starting out, it depends on your chosen structure:
- If you’re operating as a sole trader or partnership, you’ll just need to register a business name with an ABN.
- If you’re starting a company, you should first register the company, then optionally register a business name afterwards.
Protecting Your Name
Registering a company or business name does not give you ownership or exclusive rights to that name. To gain brand protection across Australia, consider registering a trademark through IP Australia.
Trademarking prevents others from using a similar name for similar goods or services, and gives you legal grounds to enforce your brand.
Final Thoughts: Choose the Right Structure
The choice between a company name and a business name depends on your business model, risk tolerance, and growth plans. A company structure offers greater protection and flexibility but comes with more compliance and cost. A business name is easier and cheaper to set up but doesn’t provide separate legal protection.
Whatever path you choose, make sure your registrations are handled properly—and affordably—with the experts at Taxopia.