How to Cancel an Australian Business Name You No Longer Use

When should you cancel a business name?

ASIC says you can cancel a business name when you no longer need it. Common situations include closing the business, changing to another business name or selling a business where the buyer will not continue using the existing name.

If you have closed the business, ASIC says to cancel the business name after the business has closed. If you are changing names, register the new business name first and then cancel the old one. If you need a replacement registration, see the Helpydo guide to registering a business name with ASIC.

Cancel or transfer: which process should you use?

The important distinction is whether another owner or entity needs to continue using the same business name. If you sell the business and the new owner wants the same name, use ASIC's business name transfer process. The current business name owner starts the transfer in ASIC Connect and receives a transfer number for the new owner.

A transfer may also be required when a change to the business results in a new ABN. ASIC gives examples including two sole traders becoming a partnership, a partnership ending with one person continuing as a sole trader, and a change of partners in a joint venture.

If a partnership continues and its partnership agreement permits partners to change, ASIC says a transfer may not be necessary; the registration details may instead be updated. The correct route therefore depends on whether the entity or ABN holding the registration is changing.

What if you are selling the business?

If the buyer wants to keep the existing business name, start a transfer rather than submitting a simple cancellation. The current owner initiates the transfer and gives the resulting transfer number to the new owner, who registers the name using that number. ASIC says the transfer number is valid for 4 months and 28 days from the transfer application.

If the buyer will use a different name, the old business name can be cancelled instead. If the business itself is a registered company and is also being closed, cancelling its business name is not the same as deregistering the company. Company deregistration is a separate ASIC process; see voluntarily deregistering a company that has stopped trading.

Who can cancel the business name?

ASIC allows cancellation by the business name holder or by a person authorised to act for the holder. ASIC itself can also cancel registrations in circumstances set out by law, but that is different from voluntarily requesting cancellation.

A holder can authorise another person, such as an accountant, lawyer, family member or friend, to lodge the transaction. ASIC says the authorised person needs proof of authority. The holder can provide the ASIC key for the business name or written authorisation allowing the person to request the ASIC key.

What should you check before starting?

First make sure the business name really is no longer required and that a transfer is not the correct process. ASIC also instructs holders to make sure their addresses and other recorded details are current so the correct people receive notices about the cancellation.

If you are the holder, you need an ASIC Connect account and the business name must be linked to it. Cancellation is an online transaction in ASIC Connect.

How do you cancel the name in ASIC Connect?

After signing in to ASIC Connect, use the following sequence:

1. Open 'Lodgements and notifications'.
2. Select the business name you want to cancel.
3. Choose 'Cancel/transfer business name' from the transaction options and continue.
4. On 'Cancellation details', select 'I would like to cancel the business name'.
5. Review the information and submit the request.
6. Read and complete the declaration, confirm your authority and submit the transaction.
7. Save the document acknowledgement if you want a record of the lodgement.

There is no fee to cancel a business name. However, ASIC does not refund registration costs you have already paid if you cancel before the registration period ends.

When does the cancellation take effect?

Cancellation is not immediate. After you request it, ASIC sends the business name holder a notice of intent to cancel. ASIC states that it will cancel the registration 28 days after you submit the application. This reflects the statutory requirement for ASIC to give at least 28 days' written notice before cancelling a registration at the holder's request.

After cancellation, the business name remains visible on the Business Names Register but its registration is shown as cancelled. ASIC also sends written confirmation to the business name holder.

Can someone else register the name immediately?

No. ASIC says that after a voluntary cancellation, no one else can use the business name for 4 months. During that period, the former holder cannot ask ASIC to restore the voluntarily cancelled registration simply because they changed their mind.

After more than 4 months, the former holder may be able to register the name again, but only if it is still available. A new registration is not guaranteed because availability must be checked against ASIC's business name rules and register at that time.

Does cancelling the business name close the company or other registrations?

Cancelling a business name is specifically a Business Names Register transaction. Do not treat it as a substitute for other closure or registration changes that may apply to the entity behind the business.

For example, if the holder is an Australian company that is eligible to be wound up through voluntary deregistration, use the separate ASIC company deregistration procedure. Likewise, cancelling a business name is distinct from changing or cancelling tax registrations associated with an ABN.

Common mistakes to avoid

• Cancelling instead of transferring: if a buyer or new entity needs the same business name, use the transfer process.
• Cancelling an old name too early: when changing business names, ASIC says to register the new name first and then cancel the old one.
• Assuming cancellation is immediate. ASIC cancels the registration 28 days after submission of the request.
• Expecting a refund for unused registration time. ASIC does not refund registration costs already paid.
• Assuming a business name cancellation also deregisters a company. These are separate ASIC registrations and procedures.
• Leaving contact details outdated before submitting the request, which can interfere with receiving ASIC's notices.

What happens after you submit the request?

ASIC issues a notice of intent to cancel to the business name holder. After the required cancellation period, the registration is marked as cancelled on the Business Names Register and ASIC sends written confirmation to the holder. Keep the ASIC Connect acknowledgement and final cancellation notice with your business records.