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Thinking about transferring a business name? It might seem like a big task, but it’s actually a common step for lots of Aussie entrepreneurs.
So don’t you worry! This guide is here to break it all down and make it simple for you. We’ll give you clear, easy-to-follow steps so you’ll understand exactly how to transfer a business name in Australia. Stick with these steps, and you’ll be set for a smooth and stress-free transition for everyone involved.
When might you need to transfer your business name?
A transfer in business name would be needed in these scenarios:
- Buying an existing business
- Selling your current business
- Changing how your company is structured
- Partnership changes
Getting this change business ownership right is vital for keeping things smooth and legally sound – it affects your branding, bank accounts, and more.
Contact Sleek now!
Understanding business name transfers
So, what’s involved in transferring a business name? It means changing the name’s registered holder with ASIC (the Australian Securities and Investments Commission). This isn’t the same as transferring company ownership (that’s about shares) or business assets like stock.
Your business name is your trading name – what your customers know you by. It’s different legally from a registered company (like a Pty Ltd). When you transfer it, you’re passing the right to use that name to someone new. Handling this carefully is just good corporate governance.
Transferring your business name is different from registering your business name from scratch.
See our resource 'How to Register Your Business Name' for more details.
How to transfer a business name via ASIC
In Australia, business name registration, transfers and renewals are handled nationally by ASIC. The process is generally managed online through the ASIC portal. Here are the fundamental steps involved:
1. Check the current registration
First up, you’ll want to confirm the business name is currently listed and active on the ASIC business register. You can do a free online check business name search through ASIC Connect. This search shows you the current holder, the expiry date of its current registration period, and if the name can be transferred.
If the name’s registration has lapsed, you generally can't transfer it. The current holder might need to re-register it first (if they're eligible). Otherwise, you might need to register it as a new name if it becomes available.
You'll also need to think about the length of the new registration period and any choices for an alternative registration period.
2. Obtain consent and the ASIC ‘Transfer Number’
The current business owner needs to give their okay for the transfer. They do this by logging into their ASIC Connect account to get a special code, known as a transfer number. This unique transfer number is what you’ll use to claim the business name.
Once the current holder has the transfer number, they’ll pass it on to you (the new owner). This number is ASIC’s way of knowing everyone’s on board. We also reckon it’s a good idea to have this agreement down in writing in your legal documents, particularly if the transfer is part of a bigger business sale.
If you don't get this clear consent and the official transfer number, the transfer can't go ahead. This is an important step to protect the current holder from unauthorised transfers. So, keep the communication clear between everyone involved.
3. The new owner claims the business name
Okay, once you have that transfer number, it’s your turn to act. You’ll use it to apply for the business name registration in your own ASIC Connect account. Make sure you have your details ready, especially your Australian Business Number (ABN) or the ABN of the entity that will hold the name.
As you go through the application, you'll link the business name to your ABN. It’s super important to get all your entity details correct here. If you (or your business entity) don't have an ABN yet, you'll need to get one sorted out first before you can finish this up.
4. Pay the transfer (Registration) Fee
While ASIC doesn’t charge a separate ‘transfer fee’, the new owner effectively pays the standard ASIC registration fee when they claim the business name. This fee covers the registration for either one or three years, chosen during the application. Payment is typically made online using credit cards or other available methods through the ASIC portal.
The fee renews the registration under the new owner’s details. Check the ASIC website for the current fee schedule, as it’s subject to change. Prompt payment prevents delays in securing the name.
5. ASIC updates the register
Once the new owner submits the application using the transfer number and pays the fee, ASIC processes the request. They will verify the details and, if everything is in order, update the Business Names Register. The business name will then show the new holder’s details.
ASIC will issue a record of registration to the new holder. The timeframe for this process is usually quite quick if done online correctly, often within minutes or hours. However, allow for potential processing times or system checks.
6. Confirmation and record keeping
Both the previous and new owners should receive confirmation from ASIC regarding the transfer. It’s vital for both parties to keep records of the transfer confirmation and any related agreements. This documentation is important for legal and accounting purposes, forming part of the business’s history.
Below is a table summarising the key roles in the ASIC transfer process:
Party | Key Responsibilities | ASIC Portal Action |
|---|---|---|
Current Business Name Holder | Consent to transfer, Initiate process | Log in, request transfer number, provide number to new owner |
New Business Name Holder | Receive transfer number, Apply for name | Log in, use transfer number to claim name, link to ABN, pay registration fee |
ASIC | Facilitate transfer, Update register | Provide transfer number mechanism, process application, update business register, issue confirmation |
This structured approach ensures the change business name process is handled correctly through the official channels.
Special considerations when transferring a business name
Beyond the basic ASIC steps, several other factors often come into play when you change business ownership and its associated name. Careful consideration of these points helps avoid future problems. Proper corporate governance demands attention to these related areas.
Trademarks and intellectual property
A registered business name with ASIC does not provide trademark protection. If the name is also a registered trademark with IP Australia, transferring the business name registration via ASIC does not automatically transfer the trademark ownership. This requires a separate application to IP Australia to assign the trademark to the new owner.
It's highly recommended to consult an intellectual property lawyer for this. They can handle the trademark assignment correctly and ensure all associated branding rights are properly transferred. Overlooking this can lead to disputes over brand use later on.
Business licenses and permits
Transferring the business name rarely transfers operating licenses and permits automatically. These are often tied to the specific entity (and sometimes individuals within that entity) holding them. The new business owner must typically apply for new licenses or transfer existing ones where permitted, contacting the relevant local, state, or federal authorities.
Examples include liquor licenses, food business permits, specific industry certifications, or potentially a credit licence or AFS licence if dealing in financial services. The requirements vary significantly depending on the industry and location. An AFS licensee or credit licensees holder status needs careful handling during ownership changes.
Tax implications
The transfer can have significant tax consequences, particularly if linked to the sale of the business itself. Capital Gains Tax (CGT) may apply to the seller on any profit made from the sale of goodwill associated with the name. The new owner needs to understand the cost base for future tax purposes.
Consulting with finance professionals, such as an accountant or registered tax agent, is crucial. They can provide financial advice tailored to your situation, covering GST, income tax, and CGT impacts. Accurate financial reporting depends on correctly accounting for the transfer.
Employee entitlements
If the business name transfer is part of selling the business as a going concern, employee entitlements are a major consideration. Obligations regarding leave balances, redundancy pay, and continuity of service usually transfer to the new employer. Understanding these ongoing obligations under the Fair Work Act 2009 is essential.
Legal advice is often needed to ensure employee rights are protected and the transfer complies with employment law. Failure to manage this correctly can lead to significant claims. Seeking support during this potentially stressful period, even considering mental health resources for owners and staff, can be beneficial.
Contracts, leases, and debts
Existing contracts with suppliers, customers, or landlords are typically in the name of the entity operating under the business name. These contracts usually need to be formally assigned or novated to the new owner, which often requires the consent of the third party. Simply transferring the business name doesn’t automatically transfer these contractual rights and obligations.
Similarly, business debts generally remain with the original entity unless specifically agreed otherwise in a sale agreement and accepted by creditors. The new owner needs clarity on what liabilities, if any, they are assuming. Updating the privacy policy related to customer data might also be necessary.
ABN and company structure
Remember, the business name is just a trading name linked to an entity’s ABN. Transferring the business name doesn’t transfer the underlying business structure, sole trader, partnership, company ACN, or the ABN itself. The new holder must have their own ABN (and company registration, if applicable) to link the business name to.
If the business structure itself is changing (e.g., sole trader incorporating), this involves separate legal and registration processes beyond the business name transfer. This might involve setting up a new registered company and ensuring proper company registration documentation is filed.
Regulated industries & specific registrations
Businesses in regulated sectors like financial services, superannuation fund management, or those requiring specific licenses (AFS licence, credit licence) have additional layers of complexity. Transferring ownership might require approvals from regulators like ASIC or APRA.
Entities like market infrastructure licensees, registered scheme operators, or fund operators managing managed funds face strict rules. Even roles like company auditor, SMSF auditor, or registered liquidator involve specific auditor registration or liquidator registration that aren’t directly transferred with a business name. Regulatory resources from ASIC can offer guidance.
Issues like sustainability reporting obligations, distribution obligations for funds, or dealing with frozen funds add further considerations. Consulting experts familiar with these areas, including company auditors or registered liquidators if insolvency is a factor, is necessary. Check relevant ASIC sections like licensees open submenu (licensees open), auditors open submenu (auditors open), or funds open submenu (funds open) for guidance.
Common pitfalls to avoid
When managing the change of business ownership and the associated name transfer, several common errors can occur. Being aware of these potential traps helps ensure a smoother process. Avoid these frequent mistakes:
- Forgetting to update essential business documentation beyond the ASIC register. This includes bank account details, supplier agreements, website information, and marketing materials.
- Neglecting to inform key stakeholders promptly. Banks, insurers, suppliers, customers, and employees need to know about the change in business details to avoid confusion or disruption.
- Assuming all business assets, licenses, or contracts transfer automatically with the business name. Each requires separate consideration and action, often involving legal documents.
- Failing to conduct due diligence on the business name’s history. Check for any outstanding debts, liens, or legal disputes connected to the name or the previous owner’s operations under that name.
- Incorrectly handling employee entitlements during a business sale associated with the name transfer. This can lead to claims under the Fair Work Act.
- Not addressing trademark ownership if the business name is also trademarked. This requires a separate process with IP Australia.
- Providing incorrect entity details (like the wrong ABN) during the ASIC transfer application. This can cause delays or registration issues.
- Overlooking the need to update or re-apply for industry-specific licenses and permits, including crucial ones like an AFS licence or credit licence.
- Ignoring the tax implications, potentially leading to unexpected liabilities for either the buyer or seller. Seeking advice from finance professionals is vital.
- Failing to obtain the official ASIC transfer number from the current holder, making the online transfer impossible.
Avoiding these pitfalls often involves careful planning and sometimes seeking professional assistance. Using available regulatory resources can also help clarify requirements. Some government portals offer features like innovation hub open submenu (innovation hub open) or hub open submenu (hub open) directing users to helpful information.
After the transfer: next steps
Successfully transferring the business name via ASIC is a significant step, but the work isn’t finished. Post-transfer actions are necessary to fully integrate the change and maintain smooth operations. Consider these follow-up tasks:
1. Update your business information everywhere
Consistency is crucial. Systematically update business information across all platforms and documents to reflect the new ownership associated with the name. This includes your website’s contact page and legal notices, email signatures, social media profiles, and online directories.
Don’t forget physical assets like business cards, letterheads, invoices, signage, and promotional materials. Ensure bank accounts are updated or new ones opened under the correct entity holding the business name. Notify the ATO and any other relevant government bodies of the changing details if required for other registrations linked to the business name holder.
2. Inform your customers and suppliers
Communicate the change in business ownership clearly to your customers and suppliers. Explain that the business name continues but is now operated by a new entity. This helps maintain relationships, ensures invoices are paid correctly, and prevents confusion.
A simple email announcement or letter can suffice. Reassure them about service continuity or any positive changes the transfer might bring. Transparency builds trust during transitions.
3. Review and update contracts and agreements
Review all significant contracts, leases, and supplier agreements. Determine which ones need formal assignment or novation to the new legal entity operating under the transferred business name. Engage legal help if necessary to draft amendments or new agreements.
Ensure that your insurance policies are updated to reflect the new business owner. Check your privacy policy and update it if data handling practices change or if required by the transfer terms. This includes ensuring compliance with data distribution obligations.
4. Update internal records and systems
Ensure all internal company records reflect the transfer. This includes updating any internal databases, accounting software (like a chart of accounts if an entity changes), and informing relevant staff or company officeholders. Good record-keeping supports effective corporate governance and financial reporting.
If the transfer involves taking over a self-managed superannuation fund (SMSF) linked to the business (less common, but possible), ensure the SMSF auditor is informed and records updated for the self-managed superannuation structure. Similar principles apply to other specific structures like a registered scheme or passport fund.
You might find resources within ASIC or business support organisations helpful. Sometimes these are found under navigation links like company open submenu (company open) or business- expand open submenu. While seemingly minor, clean navigation labels like close submenu registering or close submenu updating on government websites indicate attention to user experience, helping you find information about processes like alternative registration or submitting a details request. The innovation hub might offer checklists or guides for new business owners.
When to seek professional help
While a straightforward ASIC business name transfer between related entities might be manageable independently, many situations benefit from professional guidance. Consider engaging experts if:
- The transfer is part of a complex business sale involving significant assets, goodwill valuation, or assumption of liabilities. A business lawyer and accountant are essential here.
- There are multiple owners or complex partnership/shareholder agreements involved. Legal advice ensures the transfer aligns with these agreements.
- The business operates in a heavily regulated industry requiring specific licenses (AFS licence, credit licence) or registrations (market infrastructure licensees, fund operators). Experts familiar with financial services regulations or specific industry rules are needed.
- Intellectual property, particularly trademarks, forms a significant part of the business value. An IP lawyer should handle the trademark assignment.
- You are uncertain about the tax implications (CGT, GST, income tax). An accountant or registered tax agent provides crucial financial advice.
- Employee entitlements need careful management under the Fair Work Act. An employment lawyer can advise on correct procedures.
- The business has existing debts or complex contractual obligations that need assigning or novating. A commercial lawyer is recommended.
- There are concerns about the solvency of the seller, potentially involving a registered liquidator. Professional advice is critical in such scenarios.
- The business involves specific structures like a self-managed superannuation fund requiring an SMSF auditor or managed investment schemes needing input from fund operators or company auditors regarding financial reporting and compliance.
Professionals like lawyers, accountants, business brokers, finance professionals, and specialist consultants provide expertise to manage the transfer correctly. They help navigate legal requirements, financial complexities, and ensure ongoing obligations are met. Their fees are an investment in avoiding costly mistakes and ensuring a legally sound change business ownership.
Your business is growing—your structure should too
Thinking about moving your business name to a company? It can feel like a lot of paperwork, right? At Sleek, we get it. We can help you make that switch smooth and easy. We’ll take care of all the official stuff with ASIC so you can keep your eyes on growing your business.
It doesn’t matter if you’re just starting to grow from being a sole trader or if your business is taking off quickly. Sleek will help you get your company registered correctly from the very beginning. Ready to take that next step and set up your business for the future? You can easily get in touch with us to start the conversation.
Conclusion
Understanding how to transfer a business name in Australia is a practical necessity for many involved in buying, selling, or restructuring a small business. The core ASIC process involving the transfer number is relatively straightforward, but it’s often intertwined with broader legal, financial, and operational changes when a business owner changes.
By carefully following the steps, checking registration details, securing consent, using the ASIC system correctly, and paying attention to related matters like trademarks, licenses, taxes, and contracts, you can manage the transition effectively. Remember to update business details across all platforms afterwards and communicate the change clearly.
FAQs about Transferring Your Business Name
Log into ASIC Connect, select your business name, and choose “Cancel/Transfer Business Name.” You’ll receive a transfer number to give to the new owner, who must register the name under their ABN within 4 months and 28 days.
Yes. If you’re changing from a sole trader or partnership to a company, you’ll need to transfer the business name to the new entity’s ABN using the same ASIC process.
The transfer number is valid for 4 months and 28 days. If not used within this period, the business name becomes available for others to register.
If the new owner doesn’t register the business name within the validity period of the transfer number, the name becomes available for anyone to register.
No. Once a transfer number is issued, it remains valid for 4 months. If not used, the name becomes publicly available again.
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