ASIC has released regulatory guidance today to help businesses prepare for its new national register of business names.
Commencing on 28 May 2012 (subject to the passage of legislation through state parliaments) the new business names register will allow businesses to register their name nationally through a simple and easy to use online service. Businesses will only need to register their name once and will no longer be required to register separately in each state and territory they operate in. Existing business names currently registered in a state or territory will be automatically transferred to the new register.
ASIC Chairman Greg Medcraft said the new business names service will significantly reduce red tape and cost for Australian businesses.
‘This new online service will simplify the registration process and reduce the burden on business by enabling them to register once nationally.
‘Under this system, businesses will also have the option of registering their business name at a cost of $30 for one year or $70 for three years. Currently, a business operating and registering their business name in every state and territory faces a cost of more than $1,000 for three years registration’, Mr Medcraft said.
‘Providing a seamless national service is consistent with ASIC’s efficient registration and licensing priority - providing benefits not only for business, but also for consumers. Consumers will be able to search online free of charge for contact and ownership details of any business name currently registered in Australia, resulting in greater transparency and accessibility.’
Once the new service is launched, businesses will be able to check the availability of a business name and register, maintain and renew that business name with ASIC. The general public will also be able to search the national register for a business name to identify the entity that has registered it and how to contact them.
RG 235 Registering your business name (RG 235) aims to assist new businesses to prepare for the change, providing details on when and how to register a business name and maintaining a business name once it's registered. RG 235 also gives guidance for businesses with existing business names, providing information about how the automatic transfer to the new register will occur, accessing the new register, checking details are up to date, and importantly how ASIC will contact businesses to renew their registration before their business name expires.
Further information
To receive information from ASIC about business names, including relevant policy announcements and regulatory guidance, subscribe to our online newsletter, Business names reform update. Previous updates and frequently asked questions are also available at www.asic.gov.au/business-names.
In coming months, ASIC will host a roadshow of information sessions about the new national business names service. The roadshow will visit each state and territory capital during April and May 2012. Further details will be available at www.asic.gov.au/business-names shortly.
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