Confirm eligibility to hold proposed business name
A business name holder must meet eligibility requirements. The requirements for holding a business name are outlined below.
- Not be disqualified from managing a corporation
- Not be convicted of an offence involving dishonesty and imprisonment of at least three months
- Person involved in the management of an entity
- Disqualified holders must notify ASIC
Not be disqualified from managing a corporation
You are disqualified from holding a business name if you (or a person involved in the management of your entity) are disqualified from managing a corporation under s206B(1) of the Corporations Act 2001 (generally due to convictions for various types of criminal offence). If this is the case, you are disqualified during the period that you (or the person involved in the management of your entity) are disqualified under s206B(2).
A person who is an undischarged bankrupt or who has entered into a personal insolvency agreement under Part X of the Bankruptcy Act 1966 remains eligible to register a business name.
Not be convicted of an offence involving dishonesty and imprisonment of at least three months
You are disqualified from holding a business name if you (or a person involved in the management of your entity) are convicted of an offence (including in a foreign country) that involves dishonesty and is punishable by imprisonment of at least three months.
If this is the case you are disqualified for a period of five years after the day you (or the person involved in the management of your entity) were released from prison (or, if the person does not serve a term of imprisonment, five years after the day on which the person is convicted).
Person involved in the management of an entity
Generally, a person 'involved in the management of an entity' includes a person involved in the making (or participation in making) of decisions that:
- affect the whole or a substantial part of the entity, or
- have the capacity to affect significantly the entity's financial standing (s206A of the Corporations Act 2001).
Typically, this includes (but is not limited to):
- if the applicant is a company or registered body – each director and secretary of the company or registered body
- if the applicant is a partnership – each partner of the partnership
- if the applicant is an unincorporated association or other body – each member of the committee of management of the unincorporated association or body
- if the applicant is a trust – each trustee of the trust, and
- if the applicant is a joint venture – any of the above, depending on the type of entity of the joint venture partner, or any person involved in the management of the joint venture.
Disqualified holders must notify ASIC
It is an offence to carry on a business under a business name while disqualified. If the business name holder (or a person involved in the management of the entity) becomes disqualified – the business name holder must notify us immediately after the disqualification.