What’s The Difference Between A Business Name And Company Name?

Contrary to what some may think, a business name and a company name are not synonymous with one another. 

The key difference between a company name and a business name is that a registered business name is the name in which a venture operates under. A company name, however, is a legal entity on its own.

You must have a business name (unless you meet the exception), however you only need a company name if you choose to register as a company.  

Is It Really That Important?

Naming your business is an essential part of its future success. The name is a huge part of your business’ brand. The name under which your business operates will likely become its public identity. Beyond that, the name you chose for your business will also impact its functions, protections and limitations. 

A huge aspect of this is registering your business name and deciding whether or not your business will benefit from having a company name. Knowing the difference between a company name and a business name is a good place to start.

What Is A Business Name?

A business name is the title in which a venture operates under. Businesses in New Zealand must be registered and attain a New Zealand Business Number (NZBN)

You can take a look on One Check to see what business names are available. 

If your structure is something like a sole trader, then having a business name by itself may be sufficient. That said, you should always seek advice where you can (especially if you have bigger plans for your business’ future!).

What Is A Company Name?

A company name is the legal registration of a company. Once a business is registered as a company, the following points will apply to them:

• The company will enjoy the same rights as a natural person. They can own property, employ others, incur debt and be liable for legal action just like another person (this is also known as being a separate legal entity)
• A private company will have PTY LTD at the end of its name, while public companies have LTD. 
• All legal acts, including contracts and other legal documentation, are done under the company name.
• The Companies Act 1993 applies to the company.

What About A Trading Name?

Trading names are not officially registered names. They are simply the name of a business that can be known publicly. For example, if your business’s name has multiple words in it, people might start shortening it by using an acronym. If this catches on, then it becomes your trading name.

A trading name isn’t officially registered nor does it have any legal protection – you’ll have to take additional steps to secure this. 

When Do I Need To Register My Business Name?

As soon as you start your business, it is essential to register your business name in order for it to be a legally recognised venture. The only time you do not need to worry about registering a business name is if you meet the following exceptions:

• If you operate as a sole trader or an individual and use your legal name for this (for example, if your name is Ally Taylor and your business name is Ally Taylor).
• A partnership where the business name is the same as the names of the partners.
• If your business already operates as a legally registered company, with the operating name matching the company name.

Registration Of My Business Means I Own It, Right?

Unfortunately, no. Registration does not mean you have exclusive rights to that name nor will it prevent others from using the name. If this is something you are interested in, then you will want to look into trademarking your business name.  

Does My Registration Protect My Logo?

Creating a logo for your business is a great way to visually capture the essence of your establishment and its goods or services. 

Company logos are an essential role in the marketing of a business and many business owners create one to suit theirs.

The answer, however, is no. Your business or company registration will not automatically protect your logo.

A logo is a trademark, so in order to secure protection for your trademark, you must go through a different process. It’s always a good idea to Register A Trademark for any form of IP that you want to own. 

How To Register A Business Name 

Registering a business name is an easy and quick process that is done online. To register your business, click here.

First, you will need to check if the name you want is available. Then, you will need to fill an online form. Once your application has been reviewed and processed, you can expect to receive your registered business name confirmation through email.

If you are still confused about this process or have any questions, our team at Sprintlaw will be more than happy to assist you.

Next Steps

There is a lot to consider when registering your business. The process can be quite simple, but if you want to  take that extra step and register as a company, the process can be a little trickier. If this sounds like your plan, it’s a good idea to chat to an expert lawyer who can help you out.

At Sprintlaw, we’re always happy to chat you through your options.

If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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