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Who Should Register?
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Any individual or firm buying or selling
goods from an established
address. |
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Any individual or firm offering services from an established
address
in a name other than its/their own, for example |
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John Brown offering services in his name need not be
registered. |
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John Brown operating as Johns Accounting or John
Brown & Associates must register. |
The following categories need not register:
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Persons who buy and sell livestock. |
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Persons occupying public market stalls and paying market
fees. |
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Firms established for social or welfare purposes, public
service,
religion, charity, education, art, science etc. whose
income and
profits are used solely for that purpose |
Benefits of Registration
Registration offers a businesslike mantle and legal status
which makes
the following easier:
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Accessing loans and grants |
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Obtaining contracts |
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Operating bank accounts in the business name |
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Establishing ownership of the business |
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Inspiring customers confidence |
Businesses operating without registering at the Office of
the Registrar
of Companies are operating illegally. Once registered, your
business is
uploaded to the ORCs website. This allows, for example,
individuals and firms to check your company documents or business
name online and make sure you are a legal business in order
to offer you credit or do business with you.
Sole Proprietorship Vs Partnership
Business Names are usually registered in one of two forms
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Sole Trader or Sole Proprietorship
where there is one owner. |
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A Partnership where between 2 and 20 persons jointly
own the
business. |
Advantages of Partnership
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Sharing workload and time saving |
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Shared risks and responsibilities |
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A range of experience, knowledge and competence available |
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Cost sharing |
Disadvantages of Partnership
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Limited freedom to make decisions |
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All partners are responsible for thee mistakes of one |
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Decisions tend to take longer |
What to look for in a partner
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Sound finances and stable background |
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Aptitude for business or business sense |
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Skills in the business you will be undertaking |
Advantages of a Sole Proprietorship or Sole Trader
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Owner reaps all rewards |
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Freedom to make all decisions |
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Quick decision making |
Disadvantages of a Sole Proprietorship or Sole Trader
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Owner takes all risks |
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Unlimited responsibility - all personal assets at risk
for the debts
of the business. |
Registering
a Business Name
Business names may be registered at the ORC or partially online.
Approximately 4,000 business names are registered every year,
each
requiring two visits to the ORC. Entrepreneurs can save time
and reduce contact with the ORC to one visit by beginning
the registration
partially online. (Link to online business name registration)
To register:
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Sole Traders must submit a
BN1 form. |
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Partnerships must submit a BN2 form. |
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If the business sells goods each applicant must submit
three
photographs certified by a Justice of the Peace or an
Attorney-at-Law. In the case of a partnership, all partners
must
supply photographs. |
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Registration fee is $2,000 |
The Registration of Business Name Act offers two other
registration options which are rarely seen:
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A corporation registering a
business name to act as an agent for a
foreign firm or to act as a trustee for an individual
or another
corporation. The form used for this is the BN3. |
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Registration of an individual on behalf of another individual
or a
corporation as an agent for a foreign firm. The forms
required are the
BN 4 plus BN1 & BN2. |
Changes
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Changes made to up to 2 of
the following items on the same date
attracts a fee of $2,000.
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a. Name of Business |
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b. Nature of Business |
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c. Address of Business |
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Registration of an individual on behalf of another individual
or a
corporation as an agent for a foreign firm. The forms
required are the
BN 4 plus BN1 & BN2. |
Changes to all three require a new Business Name registration.
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All other changes made on a
given date cost $2,000. |
Application for changes must be made on the BN5 form and
a certificate confirming the change is issued by the ORC.
Renewal
Business name certificates are valid for 3 years
and must be renewed
every three years for a fee $2,000. Late renewal carries a
late charge
of $1,000.
Closure
A business may be closed and removed from the Register
by a notice in writing to the Registrar of Companies. The
BN6 form is used for this.
Know Your
Forms
BN 1 Registration of a Sole Trader
BN 2 Registration of a Partnership
BN 3 A corporation registering a business name to act as an
agent for a foreign firm or to act as a trustee for an individual
or another
corporation
BN 4 Registration of an individual on behalf of another individual
or a corporation as an agent for a foreign firm. The BN1 &
BN2 forms must also be submitted.
BN 5 Changes to a business
BN 6 Closing a Business
BN 7 Appealing a decision made by the Registrar under the
Act.
BN 8 Statutory declaration form to be used where a partner
signs on
behalf of other partners, or a director or secretary signs
on behalf
of a corporation.
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