Explanatory Memorandum
(Circulated by the authority of the Minister for Small Business, Minister Assisting on Deregulation and Public Sector Superannuation, Minister Assisting the Minister for Tourism, Senator the Hon Nick Sherry)Chapter 7 Renewing the registration of a business name
Outline of chapter
7.1 Chapter 6 of this explanatory memorandum outlines:
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- the process by which an entity may renew the registration of a business name
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- that a business can renew their registration for either one year or three depending on payment of the appropriate fee.
Detailed explanation of new law
7.2 Section 55 provides that an entity can renew their registration of their business name for a period of 1 year or 3 years, provided that they pay the appropriate registration fee by lodging the fee with ASIC.
7.3 An entity can also lodge, in the prescribed manner and form, an application for an alternative registration period. ASIC may determine an alternative registration period to align the renewal date with that for a company under the Corporations Act or another business name registered to the entity. Such a determination is not a legislative instrument within the meaning of the Legislative Instruments Act 2003. The statement in subsection 55(6) has been included for the sake of clarity only, to assist the reader, and does not amount to a declaration under the Legislative Instruments Act 2003. The purpose of this mechanism is to reduce compliance costs for business associated with lodging different renewals on different days.
7.4 Decisions under this section are reviewable under Part 7 of the Bill. Further detail is provided in the commentary for that Part.
Application and transitional provisions
7.5 All provisions in Part 6 will commence on a single day to be fixed by proclamation. The date of proclamation will depend on when the final State or Territory passes its referral legislation or adopts the Commonwealth legislation.
7.6 Transitional provisions are contained in the Business Names Registration (Transitional and Consequential Provisions) Bill 2011.
Consequential amendments
7.7 Consequential provisions are contained in the Business Names Registration (Transitional and Consequential Provisions) Bill 2011.