How To Conduct A Company Search For Your Business: A Legal Guide

Thinking of working with a new supplier, investing in a startup or just checking out a competitor? In Australia, a quick company search can save you time, money and stress.

If you’ve never run one before, it can feel technical. The good news: a company search is straightforward once you know where to look and what to check.

In this guide, we’ll cover what a company search is, when to use it, the exact steps to follow and how to interpret the results so you can make confident business decisions.

What Is A Company Search (And When To Use It)?

A company search is a check of the official record for a registered company in Australia. You’re typically looking up information filed with the Australian Securities and Investments Commission (ASIC) and, in some cases, cross-referencing other public registers.

It’s useful whenever you need to verify who you’re dealing with or reduce risk before money changes hands. Common scenarios include:

• Signing a new supply or services agreement and wanting to confirm the counterparty’s legal details.
• Carrying out due diligence before investing or lending to a company.
• Reviewing a potential acquisition or strategic partnership.
• Sanity checking your own company details to ensure everything on the record is up to date.

Running a company search is basic business hygiene. It helps you confirm identity, ensure you’re contracting with the correct legal entity and spot red flags early.

What Information Can You Expect To Find?

Depending on whether you view free summary information or purchase an extract, a company search can reveal:

• Company name and ACN: The official legal name and Australian Company Number.
• Registration status: Whether the company is currently “Registered” or has been “Deregistered.”
• Type and registration date: For example, proprietary limited (Pty Ltd) and the date it was registered.
• Registered office and principal place of business: Addresses used for official communications and operations.
• Company officers: Current directors and secretaries, and the dates they were appointed.
• Historical information: On a paid (current or historical) extract, you can see former names, previous addresses and former directors.
• Documents lodged with ASIC: A list of forms and filings the company has submitted.

A few important accuracy points:

• ASIC’s basic “status” field indicates registration (e.g. Registered or Deregistered). It doesn’t, by itself, confirm whether a company is under external administration or insolvent. For that, check published insolvency notices and court records as part of broader due diligence.
• A company search won’t tell you about trade mark conflicts. If you’re checking brand risk, you’ll need a separate trade mark search and consider steps to register your trade mark.
• If you want to know whether personal property (e.g. equipment, stock, vehicles) is subject to a security interest, search the Personal Property Securities Register (PPSR). This replaced old notions of “company charges” - today they’re called security interests.

Step-By-Step: How To Conduct A Company Search

You don’t need special software to run a basic check. Follow these steps the next time you vet a business partner.

1) Gather The Details You Have

Start with the company’s legal name. If you also have its ACN (Australian Company Number), even better - it’s the fastest way to locate the right entity. If you don’t have the ACN yet, you can still find it using the company name. If you’re unsure whether you’re dealing with a company or another structure, you can also look up their ABN (Australian Business Number) via ABN Lookup and cross-check the entity type.

If you need help tracking down the ACN quickly, see this guide to finding a company’s ACN. If you only have an ABN, it’s also easy to check if an ABN is active and confirm the associated entity name.

2) Search The ASIC Registers

Use the public search on ASIC’s registers to locate the company record. The free summary will usually show:

• Company name and ACN.
• Registration status (Registered or Deregistered).
• Type of company and registration date.
• Registered office and principal place of business.

For deeper due diligence, purchase a current or historical company extract. Extracts provide officer names, historical changes, former names and a list of documents lodged. If you’re preparing for a high-value deal, an official extract is often worth the small fee, and you may also wish to keep your ASIC Certificate of Registration (or the counterparty’s) on file.

3) Check The PPSR For Security Interests

If you’re supplying goods on credit, leasing equipment or buying assets, search the PPSR (Personal Property Securities Register). You’re looking for any security interests registered against the company’s property that could affect ownership or priority if the company becomes insolvent.

For your own business, if you supply on retention of title terms or lease valuable equipment, you should consider registering your interest - it’s straightforward to use the PPSR and you can also get help to register a security interest correctly.

4) Verify Licensing Or Industry Registrations (If Relevant)

Some industries require licences or professional registrations (e.g. building, real estate, medical). An ASIC search confirms the company exists and its officers, but it doesn’t confirm they hold the right licence for the services you’re buying. Check the relevant state or industry register if this matters to your engagement.

5) Record, Compare And Follow Up

Compare the information you’ve found with what the business provided. Make sure names, ACN and addresses match your draft contract or invoice. If anything is inconsistent - such as a different entity name on a bank account, or a director mismatch - pause and clarify before you sign.

How To Read The Results And Manage Risk

Finding information is only half the job. The way you use it can make the difference between a smooth engagement and a costly dispute.

• Use the exact legal name and ACN in your contract: Precision helps avoid confusion about who is bound by your agreement. If the business trades under a different name, remember that a business name isn’t the same as a company name.
• Confirm authority to sign: Companies can be validly bound if execution complies with the Corporations Act. Where possible, have the contract signed in accordance with section 127 (for example, by two directors, or a sole director/secretary as applicable). If someone else is signing, make sure they have authority under section 126 or via a clear delegation.
• Registered vs deregistered: If the company is deregistered, don’t proceed. A deregistered company can’t enter into a contract or be sued - your agreement could be unenforceable.
• Don’t assume solvency from “Registered” status: If you’re extending meaningful credit or entering a high-risk deal, carry out further due diligence (financial statements, insolvency notices, references) and consider appropriate securities and protections.
• PPSR results matter for asset deals and credit: If you’re purchasing assets, get releases for any existing security interests as a condition of completion. If you’re supplying goods on credit, register your own interest to preserve priority.
• Trade mark checks are separate: A company search won’t show IP conflicts. If you’re co-branding, licensing or rebranding, run a trade mark search and consider filing to protect your brand.

It’s also smart to align your internal processes with what you find. For example, update your accounts receivable system with the exact legal entity so invoices and credit terms line up with your contract.

Key Legal Documents And Next Steps

A company search is step one. The next step is to put strong contracts and processes around the relationship so your rights are clear and enforceable.

• Business Terms and Conditions: Set out payment terms, deliverables, warranties and liability caps in your Business Terms. Clear terms reduce disputes and give you leverage if things go off track.
• Non-Disclosure Agreement (NDA): Before sharing pricing, product roadmaps or client lists, ask for an NDA so confidential information stays protected.
• Shareholders Agreement: If you’re partnering or investing, a Shareholders Agreement covers decision-making, exits, share transfers and dispute processes.
• Security and PPSR: If you offer credit, consider registering a security interest over goods or receivables. Getting help to register a security interest properly can preserve your priority if a customer becomes insolvent.
• Company records and certificates: For significant deals, keep an official company extract and certificate on file. If you’re incorporating your own entity, make sure your constitution and officer details are correct from day one.
• Website and Privacy: If you collect personal information (e.g. onboarding a supplier via your portal), have a clear Privacy Policy and secure processes in place.

Finally, make company verification part of your standard onboarding. A short checklist - verify ACN, match the legal name, confirm signatory authority, check PPSR if credit is involved - keeps your team consistent as you grow.

Practical Tips To Streamline Your Checks

• Use a single source of truth: Save an official extract and enter the ACN into your CRM or accounts system so invoices and contracts always pull through the correct legal entity.
• Match bank details to the entity: If payments go to a different entity than your contract counterparty, stop and confirm the relationship in writing.
• Refresh before renewals: For long-term customers or suppliers, re-run a quick check before renewing or extending credit limits.
• Escalate higher-risk deals: If you’re investing, acquiring or entering a major long-term contract, add financial and legal due diligence to your process and consider specialist support or a dedicated due diligence package.

Common Misconceptions (Cleared Up)

• “ASIC shows if a company is insolvent.” Not exactly. ASIC will show whether a company is registered. Administration, liquidation or receivership requires checking insolvency notices and related filings as part of broader due diligence.
• “A trading name is fine in my contract.” You should contract with the correct legal entity, not just the trading name. A business name is a label - the company (or sole trader/partnership) behind it is the legal party. If you’re unsure, confirm the difference between entity and business name.
• “A company search covers trade marks.” A company search doesn’t test whether a brand or logo is available. Do a separate trade mark search and consider filing to protect your brand.
• “Any employee can sign for the company.” Not all employees have authority. Aim for execution under section 127, or obtain proof of delegated authority consistent with section 126 and your internal risk settings.

Key Takeaways

• A company search confirms the legal identity of who you’re dealing with - it’s a simple way to prevent costly mistakes before you sign or pay.
• ASIC’s free summary shows registration details; for deeper checks, purchase a company extract and review PPSR entries for security interests.
• “Registered” doesn’t mean financially sound - for higher risk deals, add financial due diligence and review insolvency notices.
• Contract with the exact legal entity and confirm signatory authority, ideally under section 127, or ensure a valid delegation under section 126.
• Company searches don’t reveal brand conflicts - run trade mark checks and protect your brand with registration where appropriate.
• Back up your checks with strong documents like Business Terms, an NDA, and, where relevant, a Shareholders Agreement, and use the PPSR to secure your interests.

If you’d like guidance on running company searches, setting up due diligence processes or putting robust contracts in place, reach out to us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.