What Are The Legal Restrictions I Should be Aware of When Choosing a Company Name?

If you are registering a company, you can choose a name for that company, provided the name you want is available and is not prohibited.

If you don’t choose and specify a name when you complete the forms necessary to register a company, the Australian Company Number (ACN) assigned to your new company will be recorded, by ASIC,  as its name. For example, if you register a company but do not request a particular name, the ACN assigned to your company – let’s say 123 456 789 – will form its name: ACN 123 456 789 Pty Ltd.

Some names cannot be used as a company name. For starters you can’t register a company under a name that is identical to the name of: a registered company, a registered foreign body, a registered business name, or a reserved company name.

You also cannot register a name that is prohibited by Schedule 6 of the Corporations Regulations, which restricts the use of terms such as “bank” and “Olympics” in company names.

The company name you choose must not be misleading or deceptive and it can’t be regulated by another law. For instance, there’s a law that governs the use of the word “university”

When you choose a name, you must include ‘identifiers’ that explain the type of company you are operating. If you are registering a proprietary company, you will need to include the identifier Pty Ltd in the company’s name.

Use the company name search tool on our home page to check that your preferred name is available. It may also be wise to check whether other existing companies have names that are similar to the one you want to use. For example, you may think twice about using the name AAA Australia Pty Ltd if a company called AAA Global Ltd is already up and running.

This is as much a marketing as a legal concern. You want your company name to be identified with your products or services, not those of another entity, particularly if it turns out to be a competitor. The legal issues also need to be considered carefully. You don’t want to fall foul of false or misleading conduct laws if you are attempting to associate your business with another, perhaps well established, brand.

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