Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
Choosing a company name can feel like one of the most exciting parts of starting a business. It’s the name you’ll put on your website, invoices, pitch deck, and maybe even the sign above your first office.
But it can also be stressful. What if someone else grabs the name first? What if you do all the branding work and then discover you can’t register it as a company name?
That’s where reserving a company name with ASIC can help. An ASIC company name reservation can give you time to finalise your structure, line up co-founders or investors, and get your paperwork ready - without losing the name you’ve picked.
Below, we walk you through what an ASIC company name reservation involves, when it’s worth doing, how to do it step-by-step, and what to watch out for (including trade marks and business names).
What Does It Mean To Reserve A Company Name With ASIC?
In Australia, ASIC (the Australian Securities and Investments Commission) administers company registrations. If you register a company, ASIC issues an Australian Company Number (ACN), and the company becomes a separate legal entity.
Reserving a company name with ASIC means you’re asking ASIC to hold a particular company name for you for a limited period, so that no one else can register a company with that exact name during that reservation period.
This can be useful if you’re not ready to register the company just yet, but you want to lock in the name while you:
- finalise your business structure and ownership split
- prepare incorporation details (directors, addresses, share structure)
- complete funding or pre-launch steps
- align branding (domain name, logo, product naming)
Company Name vs Business Name: Why The Difference Matters
A common point of confusion is the difference between a company name and a business name.
- Company name: the legal name of your company registered with ASIC (e.g. “Blue Gum Labs Pty Ltd”).
- Business name: a trading name that sits under an ABN (e.g. “Blue Gum”), also registered via ASIC but linked to your ABN.
You can operate with a business name without having a company (for example, as a sole trader). And you can run a company without registering a separate business name if you trade under the company name.
If you’re weighing up which one you need, it helps to understand the difference between entity name vs business name and business name vs company name.
When Should You Use An ASIC Reserve Company Name Application?
Reserving a company name isn’t mandatory, and many businesses simply register the company when they’re ready. But there are situations where an ASIC name reservation can be a smart move.
1. You’re Still Finalising Your Company Set-Up
If you’re still working through co-founder arrangements, shareholder percentages, or director appointments, you might not be ready to incorporate today - but you also don’t want to lose your name.
This often comes up when you’re negotiating a term sheet, waiting for a grant outcome, or preparing documents like a Shareholders Agreement.
2. You’re Launching Soon And Branding Is Underway
If you’ve already started spending money on branding (logo design, packaging, a website build), the last thing you want is to discover you can’t register the company name later.
Reserving the company name can reduce that timing risk while you finish the legal set-up.
3. You Need Time To Check Trade Mark Risks
ASIC name availability is not the same as trade mark availability.
Even if ASIC accepts a company name reservation, someone else may have trade mark rights that could stop you from using that name in the market.
So if you’re planning to protect your brand (or you’re concerned about infringing someone else’s brand), reserving your name can buy time to properly check and take next steps.
When Reserving A Name Is Usually Not Necessary
You may not need to reserve a company name if:
- you’re ready to incorporate now (it can be simpler to just register the company)
- the name is not time-sensitive and you have flexible branding
- you’re not set on the exact name, or you can easily adjust it
In many cases, the fastest route is: confirm name availability, then register your company right away with the name you want.
ASIC Reserve Company Name: Step-By-Step
If you’ve decided that reserving the name is the right move, here’s how the process typically works.
Step 1: Check Whether The Name Is Available (And Acceptable)
Before lodging anything, you’ll want to check if your proposed company name is already taken or too similar to an existing company name.
ASIC may reject a name if it’s:
- identical or nearly identical to an existing company name
- misleading (for example, implying you’re connected to government when you’re not)
- includes restricted terms (certain words can require additional approvals)
- otherwise unacceptable under ASIC’s naming rules
Tip: “Available” doesn’t just mean no exact match. Names that are considered “nearly identical” can also be blocked.
Step 2: Decide Whether You’re Reserving A Name Or Registering A Company
This sounds obvious, but it’s an important decision point.
If you already know your directors, your registered office address, and how shares will be issued, it may be more efficient to incorporate the company immediately rather than reserving the name first.
If you’re not there yet, reserving the name can act as a holding step while you get your details and documents in order (including a Company Constitution if you plan to adopt one).
Step 3: Lodge The Reservation Application With ASIC
To reserve a company name, you generally apply using ASIC Form 410 (Application for reservation of a name). ASIC charges a fee to reserve a company name, and the reservation is time-limited (typically 2 months).
Once approved, ASIC holds the name for that period so another party can’t register a company with the identical name while it’s reserved. If you don’t register the company within that window, the reservation can lapse and the name may become available again. In some cases, you can apply to renew/extend the reservation by lodging another application and paying a further fee.
Practical takeaway: Only reserve when you have a realistic plan to register the company soon, and diarise the expiry date.
Step 4: Use The Time To Finalise Your Company Details
The reservation period is your window to properly set up your company, including:
- confirming directors and shareholders
- agreeing on ownership and decision-making rules
- setting your share structure (including different classes of shares, if relevant)
- preparing your governance documents and signing processes
This is also a good time to think about how you’ll execute documents. If you’re planning to sign under the Corporations Act, it’s worth understanding section 127 signing early, because it can affect how you manage contracts and banking paperwork as you scale.
Step 5: Register The Company Before The Reservation Expires
Once your details are ready, you can proceed to register the company using the reserved name.
At that point, you’ll receive an ACN and your company will exist as a legal entity. From there, you can open a business bank account, enter contracts in the company’s name, and operate under that structure.
Common Mistakes To Avoid When You Reserve A Company Name
Reserving a name is relatively straightforward, but a few common issues can cause delays (or bigger problems later).
Mistake 1: Assuming A Reserved Company Name Gives You Full Brand Protection
An ASIC company name reservation only prevents others from registering a company with that identical name for the reservation period.
It does not automatically give you:
- trade mark rights
- ownership of matching domains or social handles
- exclusive rights to use the name in your industry
It also doesn’t guarantee you can use that name as your trading name (business name) or safely use it in the market without infringing someone else’s rights. If protecting the brand is important (and for many startups it is), you’ll likely need to consider trade mark registration as well.
Mistake 2: Not Checking Business Name And Domain Availability
Even if you’re reserving a company name, you might plan to trade under a shorter business name, or you might want the “.com.au” domain to match.
It’s worth checking these early so you don’t end up with a company name you can’t sensibly use in the market.
Mistake 3: Forgetting The Reservation Expiry Date
This happens more often than you’d think - especially if you’re busy fundraising, building product, or negotiating with co-founders.
Put reminders in your calendar, and aim to complete the company registration well before expiry (not on the last day).
Mistake 4: Picking A Name That Triggers Extra Approvals
Certain words can be restricted or sensitive and may require supporting documentation or approvals.
If your name includes terms suggesting government affiliation, professional regulation, or financial services, you may need to factor extra time into your launch plan (and in some cases, consider alternate naming).
What Else Should Startups Do After Reserving A Company Name?
Reserving the company name is just one piece of your legal set-up. If you’re building a serious business, it’s worth using that “reserved name” window to put strong foundations in place.
Protect Your IP And Brand (Early)
Your name is often one of your most valuable assets - especially if you’re building brand equity or planning to raise capital.
As a general rule, you’ll want to think about:
- trade marks (for your brand name, logo, tagline, product names)
- copyright (for written content, design assets, code, marketing materials)
- ownership (making sure contractors assign IP to your business)
If you have a co-founder or you’re outsourcing work, consider using an NDA before you share sensitive information. This helps you control what happens to your confidential business plans and product ideas.
Set Up Your Key Legal Documents
When you move from idea to execution, contracts are usually where risk shows up first. Even early-stage startups benefit from having the right documents in place (tailored to what you’re actually doing).
Depending on your business model, this may include:
- Shareholders Agreement: helpful if you have co-founders or early investors, so everyone is aligned on ownership and decision-making.
- Company Constitution: sets internal governance rules for the company, especially important where you want customised rules beyond replaceable rules.
- Customer terms: to set expectations about payment, delivery, scope, refunds, and liability (particularly if you’re selling online or providing services).
- Employment or contractor agreements: to clarify duties, pay, confidentiality, and IP ownership (and reduce disputes later).
If you’re hiring, it’s worth putting proper agreements in place from day one, such as an Employment Contract that matches your workforce and award coverage.
Check Your Privacy And Data Compliance
If your startup collects personal information - even something as simple as customer emails for a newsletter - you should think about your privacy compliance.
Many businesses will need a Privacy Policy, and if you’re collecting information directly from customers, a Privacy Collection Notice can also be relevant.
This isn’t just a “big business” issue. Privacy expectations start early, and it’s much easier to build privacy-safe practices now than patch them later after you’ve scaled.
Get Clear On Your Ongoing Compliance (Not Just Set-Up Tasks)
Startups often focus on “getting registered” and then move on. But ongoing compliance matters too, such as:
- keeping company details updated (addresses, officeholders)
- director duties and company record-keeping
- consumer law compliance when advertising or selling
- employment law compliance as you hire and grow
If you’re selling products or services to customers, you’ll also want to ensure you’re aligned with the Australian Consumer Law (ACL) - especially around representations you make in marketing, and how you handle refunds and complaints.
Key Takeaways
- An ASIC company name reservation lets you “hold” a company name for a limited time before you register the company.
- Reserving a company name can be helpful when you’re still finalising your company set-up, funding, co-founder arrangements, or branding.
- A reserved company name does not automatically protect your brand like a trade mark, and it doesn’t guarantee you can safely use the name in the market.
- During the reservation window, it’s smart to finalise your governance and key documents (such as a Shareholders Agreement and Company Constitution).
- If you’re collecting customer data, consider privacy compliance early, including a Privacy Policy and (where relevant) a Privacy Collection Notice.
- Putting the right contracts and compliance foundations in place early can save you significant cost and disruption as you scale.
If you’d like help reserving a company name or setting up your startup structure and legal documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
