Choosing a great business name is exciting, but did you realise your application can be denied? The Australian Securities and Investments Commission (ASIC) enforces strict corporate name rules. If your intended name fails these requirements, it will be refused.

Some common reasons for rejection include:

The name is in use or too similar to a company.
It has words that are restricted or misleading.
It suggests an association with the state or a large organisation.

But don’t worry! By being aware of ASIC’s rules and double-checking your name in advance, you can avoid these problems and register your business name quickly. Taking the proper precautions—e.g., checking current business names, avoiding banned words, and ensuring your name is up to the law—will save time and effort.

Why Does a Unique Business Name Matter?

Having a unique business name is very significant for a variety of reasons. Firstly, it stops you from getting mixed up with other businesses. For example, if you set up a cafe and name it “Sydney Cafe,” but there are already some cafes in Sydney with names that sound very similar. Customers will get confused and go to the incorrect place, depriving you of business.

A distinctive name is also helpful with branding. Suppose you give the name of your coffee shop “Cafe Bliss.” People will remember your brand more efficiently and quickly recognise it. Your brand strengthens when your name becomes more distinctive and easily recalled.

Finally, having a distinctive name provides you with legal protection. You can trademark a name like “Cafe Bliss,” which makes it illegal for anybody to use the same name. It will distinguish you from others and make sure that your name isn’t being copied.

How Can You Check If Your Business Name Is Available?

Before you finalise your business name, it is essential to check if someone else is already using it. The Australian Securities and Investments Commission (ASIC) will reject a name that is too similar to an already-registered Australian company.

You can check availability using ASIC’s Business Name Availability Search tool. This online service allows you to type a name and check if it is already used. If the name is not in use, you must choose an alternative name or make it distinct by adding some variations.

If your chosen name is available, you can proceed with the registration. If not, change it by adding a few words or changing the format to make it distinctive. Following this simple measure can hasten the registration process and conserve time.

What Are Restricted or Offensive Words You Should Avoid in Your Business Name?

Restricted or offensive words can cause confusion, mislead people, or are unsuitable for a business name. These words are either controlled by the authorities or are considered unfit for use in business names. Your application will be rejected if your business name includes any of these words without the appropriate approval.

Restricted words often prevent businesses from claiming false connections to government agencies, banks, or royalties. However, using them can mislead customers or create trust issues.

Some examples of restricted words include:

Bank
Trust
Incorporated
Royal
Government

These are regulated words as they make your business look as if it is related to a government ministry, bank, or the royal family when it is not. As such, their use is tightly regulated.

Also, avoid using offensive or inappropriate words. These can be seen as disrespectful or injurious, resulting in your business name being rejected.

When choosing a business name, ensure it does not contain objectionable or banned words. This will prevent you from any trouble and your name from being rejected.

Why Is It Important for Your Business Name to Accurately Represent Your Business?

It is essential to select a business name that represents your business’s work for many reasons. First, it establishes client trust. Second, your name aligns with what you provide or offer, which informs consumers what they will receive, improving their chances of selecting your business.

A name that represents your business well also prevents confusion. For example, customers will be confused if you name your store “Sydney Organic Foods” but then sell non-organic food items. This can ruin your reputation and push your customers away.

Also, an appropriate business name is more straightforward when registering with organisations like ASIC (Australian Securities and Investments Commission). If your name is misleading, it can be rejected during the registration process.

In short, a name that honestly reflects your products or services helps you gain customer trust, avoid confusion, and make sure your business name gets approved. Ensure your business name matches your offer to create a strong, trusted brand.

What Are the Rules for Choosing Characters and Symbols for Your Business Name?

It is advisable that you adhere to ASIC’s guidelines on the symbols and characters you can use when you are naming your company.

Some of the below are things that you should remember:

Use letters and numbers: You are allowed to use standard letters (A – Z) and numbers (0-9) in your business name.
Simple symbols are allowed: Using simple symbols like & (and), – (hyphen), and'(apostrophe) is fine. They will be accepted and will not cause any delay in the registration process. “John’s Bakery & Cafe,” for instance, would be fine.
Avoid unusual spellings: It is advisable to employ unconventional or challenging-to-spell spellings. Your name could be rejected if it is hard to pronounce or confusing. Make sure your name is easy to remember and pronounce.
Limit punctuation and special characters: Avoid using a lot of symbols or odd punctuation, such as $, #, or @. These could result in the rejection of your application because they will make your name appear unprofessional or unclear.

By adhering to these simple rules, you’ll ensure that your business name is clear, easy to read, and more likely to be approved by ASIC. This will help your business stand out and avoid any registration problems.

What are the Common Formatting Issues to Avoid?

In addition to character and symbol rules, watch out for formatting issues. Using too much punctuation, random capitalisation, or improper spacing can make your name look unprofessional or lead to rejection. For example:

Excessive punctuation: Avoid using symbols like!, @, or #, as they might make your name appear cluttered and difficult to read.
Unnecessary spaces: Be cautious of awkward spacing, like “My Business Name” or “My Business Name,” which may seem unprofessional.

By following these simple rules, you’ll ensure your business name is clear, professional, and likely to be approved by ASIC.

What Is Trademark Infringement, and How Can You Avoid It?

When your company name is too close to an already-registered trademark, it is considered trademark infringement and confuses consumers. To avoid this, you should check your business name using the Australian Trade Marks Online Search System (ATMOSS).

If your name closely resembles a registered trademark, it could be rejected, and you may face legal issues. Ensure your business name is distinct to avoid conflicts and protect your brand.

Why Should You Get Professional Help for Business Name Registration?

If you are unsure of the requirements for registering your business name, it is advisable to consult professionals. ISM Accountants makes it easy by taking you through ASIC’s requirements. We will help you avoid mistakes that will lead to rejection and ensure your name is registered without a hitch. Our expertise means less hassle for you and a higher chance your business name will be approved without problems.

Getting professional help is essential because the process can be complicated. We’ll remove the stress from it, so you don’t have to worry about confusing requirements. Our support makes your business name more likely to be approved quickly and without issues.

Conclusion

Following ASIC standards is an easy way to avoid business name rejection. Simply make sure your name is available, distinctive, does not contain restricted words, and reflects the nature of your firm.

If you need assistance, ISM Accountants can walk you through the business name registration process. Contact us today to ensure that everything goes smoothly!