What’s in a name? When you’re naming your not-for-profit organisation, there’s more to it than you might think!

Life is for one generation; a good name is forever.
~ Japanese Proverb

There are lots of things to decide when you’re looking to set up a not-for-profit organisation. In addition to identifying the organisation’s mission and the goods or services that it will provide, you’ll also need to decide what it is going to be called.

There are a few different types of names that your organisation can have – a legal name, business name(s) and trading name(s) – and they all have different meanings under law.

Legal name

A legal name is the name that an organisation is incorporated under.

A not-for-profit organisation can operate under its legal name. For example, a company named “AXY Limited” can operate under the name “AXY Limited”.

Not-for-profit organisations are commonly set up as companies limited by guarantee or incorporated associations (amongst other structures).

A company limited by guarantee can omit the word “Limited” or its abbreviation “Ltd” anywhere the name of the company is required to be used provided:

  • it is registered as a charity with the Australian Charities and Non-profits Commission
  • its constitution prohibits the company from paying fees to directors, and
  • its constitution requires the directors to approve all other payments the company makes to directors.

For example, a company limited by guarantee using the legal name “AXY Limited” that meets the requirements listed above can operate under the name “AXY”.

A company limited by guarantee, and in some cases incorporated associations, can also apply to have “Limited” or “Incorporated” (as the case applies) completely removed from their legal name.

It is an offense under the Corporations Act 2001 (Cth) if a company does not use its legal name and Australian Company Number or Australian Business Number on all public documents and negotiable instruments.

In most states and territories, it is also an offense under the Associations Incorporations legislation if an association does not use its legal name (including “Inc” or “Incorporated”) in legible characters on its publications and business documents. In Victoria, associations must also include the registration number specified in their certificate of registration on their publications and business documents.

Business names

If an organisation wishes to operate under a different name to its legal name, it will need to register a business name through the Australian Securities and Investments Commission’s (ASIC) online platform, “ASIC Connect”. For example, a not-for-profit’s legal name is AXY Limited, but its registered business name could be “The AXY Foundation”.

The steps to register a business name are set out on the ASIC website here.

Trading names

A trading name is similarly the name or title under which an entity conducts business and may or may not be the same as an entity’s registered business name. Business names are managed by ASIC while trading names are managed by the Australian Taxation Office (ATO).

Since the introduction of the national business names register in 2012, it has become less common for not-for-profit organisations to register trading names. Importantly, from 31 October 2023, the Australian Business Register (ABN Lookup) will no longer display trading names that were recorded before the introduction of the national business names register. Trading names will remain with the ATO for internal historic record purposes only and this information will no longer be able to be viewed or updated in any ATO self-service channel.

More information

There are video tutorials and step by step guides on the ASIC website that can help you register a business name. If you’d like any further assistance or information about legal, business or trading names, please contact us.

This publication was authored by Hannah Rose and is ©For Purpose Advisory. It is for general guidance only and any opinions expressed are the opinions of the author. The content and any links are current as at the date it was published and For Purpose Advisory takes no responsibility for any changes to the links or accuracy of the content. Legal advice should be sought before taking action in relation to any specific issues mentioned in this publication.