ASIC rejections due to an existing business name

Grant Stoddart, Customer Service Representative

As we approach one of the busiest times of year for company registrations at Cleardocs, I thought I would address a common query about ASIC rejections. Some of you might discover ASIC has rejected your company registration on the basis the name you want to register is identical to an existing business name.

It is ok for ASIC to register a company with a name identical to an already registered business name provided the business name holder is involved in the company and meets ASIC’s requirements in terms of the level of their involvement.

ASIC advises that in order to register a company using an existing business name,the following conditions must be met:

If the business name is held by a:	ASIC registration requirements for the company are:
Sole trader	The sole trader must be a director
Partnership	Each partner must be a director
Trust	Each trustees of the trust must be a shareholder, and a copy of the trust deed emailed to ASIC
Company	The company must be a shareholder in the new company

After you submit your application to ASIC, its system will flag the existence of the identical business name and ASIC will reject the application. All you need to do is call or email Cleardocs support and we will lodge the application manually for you, confirming with ASIC that the above conditions have been met. As this application will be manually reviewed by ASIC, it will take a bit longer to process, but in most instances the company will be registered on the same business day.

If the company has no connection to the existing business name, or does not agree to the ASIC requirements in the table above, then they will need to choose a different company name to register.

For further information about ASIC rejections or Cleardocs document packages, please call our helpline on 1300 307 343.

+Cleardocs Thomson Reuters

ASIC fees to rise — Need to register a company? Save a little this financial year

Christopher Balmford, MD

On 1 July 2011, the ASIC fee:

• for registering a Proprietary Limited (Pty Ltd) company will increase from $412 to $426. The Cleardocs fee of $137.50 (inc. GST) will stay the same.
• for reserving a name (or extending a name reservation) for a Proprietary Limited (Pty Ltd) company will increase from $41 to $42. The Cleardocs fee of $22 (inc. GST) will stay the same.

According to ASIC, the fee rises are to reflect an increase in the Consumer Pricing Index (CPI).
Also, there will be a one-off increase to the company annual review fee, to cover the increased costs of the national scheme.

Various other ASIC fees are increasing. You can read more information about the new fees here on ASIC’s website.

Remember you can use Cleardocs to create legal documents, and to register companies with ASIC 24 hours a day, even on weekends.

Registering companies this financial year
Also, remember:

• that company registrations cannot be back-dated. So if you need a new company to exist in this financial year, then you must register it before the end of this financial year; and
• that a company’s Certificate of Incorporation is dated the day that ASIC approves the registration – not the date the application is lodged (if those dates are different).

So if you find yourself with a last minute company to register, then make sure you keep an eye on your order through Cleardocs to make sure the company gets registered. For example, if you lodge a company registration application before 30 June 2011 but ASIC rejects the application, then you will need to make sure you correct and resubmit your application — and that it is successful — on or before 30 June 2011.

Extended helpline hours
We will extend our helpline hours for the last few days of the financial year. We'll answer the helpline:

• on the weekend of Saturday  25 and Sunday 26 June from 9am to 5pm; and
• each day from Monday 27 June until Thursday 30 June until at least 8pm.

Launch your company into cyberspace

Danni Kirwan, Marketing Executive

How do your customers find you? In the past, it may have been as simple as a quick flick through the yellow pages or a recommendation from a friend. These days, phone books have been replaced by search engines and recommendations come not just from friends but from anyone with internet access who cares to share their opinion. Although this is great for consumers, where does it leave businesses that haven’t yet found their home in the World Wide Web?

Online visibility is now a key factor in the marketing strategy of many businesses – both big and small. As consumers become more internet savvy, companies need to be in the online arena if they are to compete. Case in point: If you wanted to book a hotel or flight ten years ago, you’d go to your travel agent and hope they could get you a good deal. These days, you can compare and book online in minutes, all with a lowest price guarantee.

But you don’t have to be a five star hotel or an international airline to take advantage of the accessibility and convenience of the internet. If you would like to get your company online, then the information below will give you an idea of the basics:

Registering a domain

Registering your domain will be your starting point, first you’ll need to choose a domain name (and check that it’s available) and the type of domain that you wish to register. Ideally, your domain name should be as close to your company name as possible. So if you’re registering a new company, then you may want to check that a domain name − the same as or similar to the company name − is also available.

The most common types of domains registered in Australia are “.com” and “.com.au”. Although “.com’s” can be registered world-wide for any purpose, “.com.au” domains are only for use by Australian businesses. If you wish to register a “.com.au”, then you will need to provide proof that you have officially registered a related business or company name – such as your ABN or ACN number. There’s also a range of other domains available for specialised purposes , for example “.org.au” for non-profit organisations and “.id.au” for Australian individuals.

Hosting – giving your website a home

The next thing you will need to consider is hosting your website. Essentially, Web Hosting is what allows your domain or website to be found on the internet. Your web host will store your web files (the data contained on your web pages) on a server, and then when someone searches for your domain name a request is sent to that server and your web page will then load.

Like domains, there’s a lot of options to consider when you are purchasing hosting. The cost of your hosting will vary depending on factors such as the amount of memory and number of email addresses included in your package. If you purchase hosting alone you will also need to hire someone to design a webpage for you − in some cases hosting and web-design are sold as a package.

If you don’t want the ongoing responsibility of building and maintaining a website, then you may wish to consider email forwarding. Email forwarding allows customers to send emails to your domain, which are then forwarded to your existing email account. This allows you to present a professional corporate identity to your client without the expense of web hosting or design.

So where’s my website?

A common question we are asked on the Cleardomains helpline is “why can’t I see my website in a Google search?” When you do a web search, your browser trawls the internet for what it believes to be the most relevant results. You can improve the chances of your site being found by using relevant keywords and phrases on your site, and building quality links to other sites. Improving your websites presence on the internet (and thus your search rankings) is called search engine optimisation (SEO). There are many companies that provide SEO services if you need help making your site more search engine friendly.

How much does it cost?

The market for domains and web-hosting is world-wide, and thus quite competitive. Cleardocs’ sells domains and hosting though Cleardomains Domains start from $29.95 per year for “.com” and $79.90 for two years for a “.com.au” domain.

A range of hosting is available to suit different needs, and starts from $11.00 a month.

To visit Cleardomains and find out more click here.

A rose by any other name… choosing a name for your company, trust, or SMSF

Lisa Galbraith, CEO

At various points in our life we get to name things – our children, our pets, and some of us decide whether to change our name when we marry. We turn to book checking, discussions with interested parties, and checking of meanings.

Then comes the moment of selecting the name for your new company or your family trust or your SMSF — and many of us are stumped for ideas. All the good ideas seem to be taken!

To save you a bit of time before you start brainstorming names, here's a simple guide to what's possible.

Choosing a company name

ASIC's imprimatur

When it comes to selecting your company name, ASIC keeps a firm hand on acceptable names. No use of "bank", "trust", "ANZAC" "incorporated", "building society", "royal". Under the Act, the use of "Sir Donald Bradman" is specifically called out as off-limits. Offensive names and names that suggest illegal activity are also a no no. Schedule 6 of the Corporation Regulations provides a handy list of the unacceptable names.

Using an existing business names

An existing registered business name – other than your own – is also off limits. Even if your company will be based in Melbourne and the registered business name is in Queensland, ASIC won't let you have the name. We get lots of calls on our helpline about this. ASIC rejects these names because a company's name is in the public domain so ASIC doesn't want it to be misleading or for it to suggest a link that does not exist. So if there is a registered business name, then your company name could create confusion and your request will be rejected.

You can, of course, apply for an exception – you do that by sending a form to the appropriate Federal Minister and paying the $1,000 fee. For example if you wish to use "ANZAC", then you will need to apply in writing to the Federal Minister for Veterans Affairs. (I am not sure what the turn-around time on these types of requests is J. If you've ever done one, please comment below.)

Names that are similar to existing names

If your company name is similar to an existing company or business name, then ASIC may reject it as well. For example, using a plural of an existing name is considered too similar, so is a name that sounds the same when spoken even though it is written differently.

Use the ASIC identical name check link

So before you lodge your company application, use the ASIC identical name check link. Here is the link so you can check now.

Choosing a name for your trust or SMSF

On the other hand, when it comes to naming your SMSF or family trust, you can really let your creative juices flow. (Although if your trust will be trading in the public domain, then you probably want to keep a valve on those juices). You should also keep in mind that someone in your State Revenue Office will be stamping your document or reading the name on your cheques.

It is useful to use a name that helps you remember what the document is for; for example including "family trust" or "super fund" makes it easy for you to locate the correct legal documents.

The main thing is that trust and SMSF names do not need to be registered with ASIC (or anyone else). So it's fine if more than one trust ends up with the same name.

Some of my personal favourites that have come across my desk include: "The Absolute Trust", "Mine Not Yours Superannuation Fund", "Where2Next Super Fund".

But if you are really stuck, you can always use your own surname – which is a pretty special name in its own right.