Introduction:
This essay is going to analyze the requirements and limitations about
company names and briefly introduce the procedure to form a
company.
Facts:
1. Abe and Phillip are going to establish a company and the name is
Vandalay Industries Pty Ltd.
2. Moreover, I hope to form a company and face a series of problems
to be solved.
Issues:
1. Is the name “Vandaly Industries Pty Ltd” available?
2. There are several questions that need to be solved before form a
company.
(a) Choose an available name for my proposed company.
(b) Fill in a registration application form.
(c) Calculate the fee to lodge a registration application with ASIC
(d) The consents that should be achieved before the application
for registration can be lodged with ASIC.
(e) The preparation of the constitution for the proposed
company.
(f)Scheme the books, records and registers that my company
must establish after it is formed.
(g) The difference between ABN and ACN on the company’s
invoices.
Parties:
The name ”Vandalay Industries Pty Ltd.’’
My proposed company
Rules:
1,
Company name:
A company name may be its Australian Company
Number (ACN), which is a nine-digit number allocated
by ASIC upon the company’s registration: s 148(1).
The requirements and restrictions about company
names:
A limited company must have the word “Limited” or the
abbreviation “Ltd” as part of and at the end of its
abbreviation “Pty Ltd” at the end of its name: s 148(2).
Availability of name:
Persons wishing to form a company with a name other than
the CAN should ensure that the proposed name is available.
Under s 147(1) a name is available to a company unless:
It is identical to a name that has already been
reserved or registered.
It is identical to a name that is included on the
national business names register in respect of
another person; or
It is unacceptable
The Corporations Regulations, Sch6, sets out rules for
determining whether a name is identical and provides a
number of instances where a name is unacceptable or
restricted for the purposes of the Corporations Act, s
147(1). Schedule 6, Pt2 of the Corporations Regulations
excludes names that in the opinion of ASIC are
undesirable or likely to be offensive or contain specified
words or phrases that imply a connection with a
government, the Royal family or Sir Donald Bradman, A
name is also unacceptable if it implies that the members
of an organization are incapacitated if this is not the
case. Schedule6, Pt3 lists restricted words or phrases
that imply a purpose or status that would be misleading
if they could be freely used. Examples of such restricted
words are “ executor”, “stock exchange”, ”trust’, “RSL” and
“chartered”.
Other sections also restrict the use of particular names.
For example, s 923B of the Corporations Act restricts the
use of the names “stock broker” or “share broker” to
persons authorized to do so by a financial services
license held by them.
ASIC provides an Identical Names Check facility to check
whether a proposed company name is identical to one
already registered on the ASIC database. ASIC’s National
Names Index permits the making of electronic searches of
