A member asked over 7 years ago

Registering a business in another name

My partner and I want to start our own business, however, we want to be silent partners so that the business registration cannot be traced to us personally. We have a friend willing to register the business under themselves. They will not need to do anything as my partner and I will operate the business. What is the legality of this structure? There's an agreement that the friend who will register the business will be receiving a percentage for allowing us to use her ABN. 

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. Prospective business owners in Australia must provide accurate and up-to-date personal information when completing the registration process, and there is good reason. Certain responsibilities arise from registering and running a business in Australia, the most important being the full and accurate disclosure of appropriate information for tax purposes. Some individuals are disqualified from registering a business, such as certain foreign residents, or those who have been convicted of a criminal offence. It is therefore important that businesses are registered using accurate personal details.

If you were to register a business in Australia in a name that is not your own, it is unlikely you will be able to satisfy the requisite identity checks and, more importantly, you risk being investigated by the Australian Securities and Investments Commission (ASIC) for providing false information.

If you have a specific reason for why you do not want your personal information to be publicly available, (e.g. concerns for your personal safety), you may be able to request the suppression of this information. For more information about this, visit the ASIC website (www.asic.gov.au) or call 1300 300 630.

Suggested way forward

To explore whether you have any other options available to you, and to ensure these options are lawful, you should speak to a business lawyer about your situation. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 7 years ago   Legal disclaimer

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