Does a franchisee need to register for an Australian Business Number (ABN) or a business (trading) name?

Before you buy a business or a franchise, you need to know the requirements of business registration. Registering for an ABN is an entirely separate process from registering a trading name.

Registering a business name

As a franchisee you will almost certainly be in business under an existing brand name but this is not the same as your trading name. You can choose to use your own name or a company name; it is simply the title under which you will be trading as a legal entity.

If you choose your own name as the legal trading entity, there is no need to register it. But you will need to if the business name is Anna Bell Business Services, for instance.

You need to either already have an ABN, or be in the process of applying for it, before you can register your business name.

All business name registrations are managed by the Australian Securities and Investments Commission (ASIC) and you can name availability on the website.

Registering for an Australian Business Name

An ABN is an 11 digit number unique to your business; it is used to identify your business to other organisations and to the government.

It isn't essential to have an ABN but it is necessary for tax purposes (it doesn’t replace your tax file number).

An ABN allows you avoid Pay as You Go tax on payments received, to claim Goods and Services Tax, to claim energy grants credits and to obtain an Australian domain name.

An ABN needs to be included on invoices and sales documents.Registrations for ABNs are free and managed by the Australian Taxation Office (ATO).

Check out the business.gov.au website for more information on business registrations.

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