How to Avoid Business Name Rejection

Starting a small business can be a thrilling and challenging experience. One of the first steps to establishing a successful enterprise is choosing a business name that represents your brand and meets the legal requirements.

In Australia, registering a business name is a crucial process that requires careful consideration to avoid rejection. This can be a frustrating and time-consuming experience, especially for new business owners who may not be aware of the guidelines and regulations.

In this blog, we aim to educate small business owners on registering a business name in Australia and provide valuable tips on avoiding rejection, ensuring a smooth and successful start to your business journey.

Process of Registering a Business Name in Australia

The following is the process of registering a business name in Australia, including the requirements and regulations set by the Australian Securities and Investments Commission (ASIC):

Choose a business name: The name you choose for your business must be unique and not already registered by someone else. You can check the availability of a business name through Registry Australia or ASIC Connect website.
Ensure compliance with naming rules: Your business name must comply with the ASIC naming rules, which include restrictions on the use of certain words, such as "Australian Government" or "Australian Bank".
Register your business name: Once you have chosen a unique and compliant business name, you can register it through the Registry Australia service.
Renew your registration: Your business name registration must be renewed every year, and you will need to pay the annual fee each time.
Update your details: If your business details change, such as your address or the individuals listed as directors and/or partners, you must update this information through the ASIC Connect website within 28 days or you can contact Registry Australia on 1300 070 000 and we will do it for you.

As you can see the first requirement is to choose a business name. Let's look at some of the reasons for which your chosen business name can be rejected.

Reasons for business name rejection and how to avoid them.

There are several common reasons why business names may be rejected:

Similarity to existing business names:

If your proposed business name is too similar to an existing business name, it will likely be rejected by ASIC. Example: "Smith's Cafe" may be rejected if a registered business is already named "Smith Cafe”. To avoid this, ensure that your business name is unique and does not closely resemble any other registered business name.

If your chosen business name is already taken, Read this guide to know what to do next.

Non-compliance with naming rules:

The Australian Securities and Investments Commission (ASIC) sets a number of rules for business names in Australia to ensure that business names are unique, meaningful, and not misleading or deceptive. It will be rejected if your proposed name does not comply with these rules.

Here are some of the main business name rules set by ASIC:

Meaningful: The business name must accurately represent the business and its activities. For example, a business name such as "ABC Plumbing" should accurately reflect that the business provides plumbing services.
Non-misleading or deceptive: The business name must not be misleading or deceptive. For example, a business name such as "Instant Wealth Solutions" may be considered misleading if the business does not actually provide instant solutions for wealth.
Compliance with naming rules: The business name must comply with the ASIC naming rules, which include restrictions on the use of certain words, such as "Australian Government" or "Australian Bank". For example, the name “Australian Bank help business" may be rejected as it contains the prohibited word "Australian Bank".
Misleading or deceptive content

Business names that are misleading or deceptive will not be approved by ASIC. To avoid this, ensure that your business name accurately represents your business and does not mislead or deceive consumers. Example: "Green Cleaners" may be rejected if the business uses cleaning products that are not environmentally friendly. The use of "Green" in the business name implies that the company is environmentally conscious, which must be true to avoid rejection.

Use of prohibited words or expressions

There are certain words and expressions that are prohibited for use in business names, such as "Australian Government" or "Australian Bank". To avoid this, ensure that your business name does not contain any prohibited words or expressions.

Inadequate evidence of identity

When registering a business name, you must provide evidence of identity for all individuals listed as directors and/or partners of the business. If this evidence is not provided or inadequate, your business name may be rejected by ASIC.

How to search and choose the right name.

Here are some tips on conducting a thorough name search that resonates with your business and is easily registered.

Use a professional name search service: For a comprehensive and thorough search, you may consider using a professional name search service, such as Registry Australia. Our website offers a comprehensive business name search service to help you find the best name for your business and ensure that it is available for registration.
Search for similar names: In addition to searching for the exact business name, you should also search for similar names to ensure that no similar names are already registered.
Check trademark databases: You should also check trademark databases, such as IP Australia's trademark database, to see if the business name is already trademarked.
Consider variations and abbreviations: Consider variations and abbreviations of your desired business name when conducting your name search. For example, if you want to name your business "Noor’s watches", also search for "Noor watches" and "Noors watches".

Read more about this topic here: 10 Tips to Avoid When Choosing Your Business Name.

By following these tips, you can increase the chances of successfully registering your desired business name in Australia.

How Can Registry Australia Help You?

With the help of Registry Australia, you can free yourself from the hassle of finding the correct business name. Our experienced team will assist you in conducting a thorough name search, ensuring that your desired name is available and not already in use.

We will also provide you with tips and guidance on how to comply with the ASIC naming rules and regulations, helping to increase your chances of a successful business name registration.

With our help, you can save time and effort and focus on growing your business. If you need help with your name search, feel free to visit Registry Australia for more information or call us on 1300 070 000.

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