Private Practice
- Text Decrease
- Text Increase
- Print Page
Company & Business Names
What is the difference, and how should they be displayed?
Company Names
Australian Company Numbers (ACNs), are issued by the Australian Securities and Investments Commission (ASIC) to all incorporated bodies to ensure adequate identification of companies transacting in business. Doctors whose practices are incorporated are under obligations concerning where and on what documents their company name and ACNs need to be displayed.
A company’s full name and ACN must appear on the company’s common seal and all ‘public documents’ and ‘eligible negotiable instruments’ that are signed or issued.
With regard to the company’s common seal, the Corporations Law requires that the ACN follow the company name. For documents in which the company name and ACN must appear, the ACN must immediately follow the first time the company’s name appears in full. The name and number must be set out in a way that is clear and easy to read and the number should be identified by the words ‘Australian Company Number’ or by the abbreviations ‘ACN’ or ‘A.C.N’.
The company’s name may be abbreviated elsewhere in documents provided it is set out in full the first time. The requirement to set out the company’s full name is interpreted strictly. It is important to include the company type, eg ‘Proprietary Limited’ or ‘Pty Ltd’ and not abbreviate names.
A company’s name and ACN should appear on the following:
- business letterheads
- statements of account (including invoices)
- handwritten receipts
- orders for goods and services
- official company notices (including tax returns, group certificates, court documents etc)
- cheques, promissory notes and bills of exchange
- documents lodged with ASIC
- order form style advertisements.
An ACN is not required to appear on the following unless it doubles as a ‘public document’:
- packaging or labelling (including envelopes and transport documents)
- credit cards and credit card vouchers
- machine generated receipts
- business cards and ‘with compliments’ receipts
- advertisements which only promote the company and stop short of a direct offer
- items which are not documents (eg vehicles and television advertisements).
ASIC has interpreted ‘document’ to include electronic documents, and therefore these require the ACN to be included.
Failure to comply with these provisions can attract a $1000 fine and/or three months imprisonment.
Business Names
In addition to a company name, it is compulsory for a business to have a registered business name if it is operating under a different name to that of the proprietor. ASIC is not involved in this process, and each state has its own relevant statutory provisions. In Victoria, this requirement is set out in the Business Names Act 1962, and regulated by the Office of Fair Trading. The purpose of the Act is to protect the public from being misled or confused by different businesses with identical or very similar names. It also creates a way for the identity of proprietors who do not trade under their own name to be ascertained, and provides for a public registry to be available for such purposes.
A proprietor whose proposed business name consists of his or her own name is not required to register. For example, John Smith and James Brown may trade under the name Smith and Brown without registering, provided they are the only two partners of the business.
A proposed business name may be refused if it is considered ‘undesirable', is too similar to an existing registered business name, or is likely to suggest a connection with government, banks or other prominent organisations.
Once registered, the business name must be prominently displayed in legible characters on all:
- business letters
- statements of account
- invoices
- official notices
- publications
- orders for goods
- receipts
It also must be displayed conspicuously on the outside of all places of business.
A business name must be registered with the Office of Fair Trading and renewed each year. The Office of Fair Trading must be informed of any changes to the proprietor’s name, the company’s name, or the address of the business.
All registered companies, their ACN’s and business names, can be checked through the Australian Securities Investment Commission. This site also contains a more detailed discussion of ACN requirements. The ASIC business centre in Melbourne may be contacted on +61 3 9280 3500. Alternatively, contact Office of Consumer Affairs Victoria for more information on the registration of business names and similar information call +61 39627 6000.
