Written byAn Australian company number (ACN) is the unique nine-digit number ASIC issues to every company at registration, shown on its invoices, contracts and other public documents.
Also known as: ACN, Australian company number, company number
Key points
- Only companies have an ACN; a sole trader, partnership or trust has an ABN but no ACN.
- Most companies also hold an ABN, and the ABN is usually the ACN with two extra digits at the front.
- The ACN must appear with the company's full name on invoices, letterhead, cheques and every document lodged with ASIC.
- Lenders use the ACN to pull the ASIC company extract, which shows the directors, shareholders and registered office behind a Pty Ltd company applicant.
How an ACN works
When a company is registered under the Corporations Act, ASIC allocates it a nine-digit number that stays with it for life, through name changes and changes of directors, until it is deregistered. The number identifies the company on ASIC's register. Anyone can search the register free for the company's status and registration details; directors, shareholders and the registered office are on a paid extract. ASIC also uses the number to track annual reviews and lodgements.
The law requires the ACN, or the ABN where it embeds the ACN, to be shown on public documents so that people dealing with the company can identify exactly which legal entity they are contracting with. That matters because a company is a separate legal person from the people who run it.
ACN, ABN and business name
Three identifiers get confused. The ACN comes from ASIC and identifies the company as a legal entity. The ABN comes from the ATO through the Australian Business Register and identifies any entity that carries on a business, company or not, for tax purposes; a company's ABN is normally its ACN with two digits added in front. A business name is a trading name registered with ASIC and linked to an ABN, and it is not an entity at all.
In practice a company quotes its ABN on tax invoices and its ACN on formal documents and contracts, and it can trade under a registered business name that differs from its company name.
ACN in a finance application
When a company applies for finance, the lender starts with the ACN. An ASIC extract confirms the company exists and is not in external administration, and lists the directors and shareholders, which drives the identity and beneficial ownership checks the lender must complete. Directors are usually asked for a personal guarantee, so the extract also tells the lender who those people are.
Security is registered against the company too. A search of the PPSR by ACN shows any existing security interests over the company's assets, and when the new loan settles the lender registers its own interest against the same number.
Example
Two mates in Ballina set up a fencing company through their accountant. ASIC registers it and issues a nine-digit ACN; the accountant then applies for an ABN, which comes back as the ACN with two extra digits, and registers the business name they trade under. A year later they apply for finance on a tipper truck. The broker runs the ACN through ASIC, confirms both are directors and shareholders, collects a guarantee from each, and the lender registers its interest in the truck on the PPSR against the company's ACN.
Not to be confused with
- Australian business number (ABN)
- an ABN identifies any business entity for tax purposes, while an ACN identifies a registered company
Frequently asked questions
What is the difference between an ACN and an ABN?
An ACN is issued by ASIC only to companies and identifies the company as a legal entity. An ABN is issued through the Australian Business Register to any entity carrying on a business, including sole traders and trusts, and is used for tax and invoicing. A company usually has both, with the ABN built on the ACN.
Does a sole trader need an ACN?
No. A sole trader is not a company, so there is nothing for ASIC to register and no ACN to issue. A sole trader operates under their own name or a registered business name and quotes an ABN. An ACN only becomes relevant if you set up a company to run the business.
Where do I find a company's ACN?
On the company's invoices, letterhead and contracts, where it is required to appear, or by searching the company name on ASIC Connect or ABN Lookup. ABN Lookup shows the ACN alongside the ABN and business names for a company, and the ASIC search shows its registration status and where its documents can be ordered.
Does my company need both an ACN and an ABN?
It automatically has an ACN once registered. It needs an ABN if it carries on a business, which almost every trading company does, to quote on invoices, register for GST and deal with the ATO. Applying for the ABN is a separate step after ASIC registration, although the Business Registration Service can do both in one application.
Why does a lender ask for my ACN?
To identify the exact legal entity borrowing, check its status on the ASIC register, confirm who the directors and shareholders are for identity and guarantee purposes, and search and register security interests on the PPSR. Quoting the correct ACN, rather than a business name, avoids delays at assessment and settlement.
Related terms
Australian business number (ABN)
An Australian business number (ABN) is the unique 11-digit identifier the ATO issues to a business or other entity through the Australian Business Register.
Read definitionCompany
A company is a separate legal entity, formed under the Corporations Act 2001, that can own property, borrow and be sued in its own name, independently of its shareholders.
Read definitionPty Ltd company
A Pty Ltd company is a private company with its own legal identity that cannot offer shares to the public and limits shareholders' liability to their share capital.
Read definitionASIC
ASIC is the Australian Securities and Investments Commission, the regulator for companies, markets, financial services and consumer credit, which licenses providers, keeps public registers and enforces conduct laws.
Read definitionSole trader
A sole trader is the simplest Australian business structure: one person owns and runs the business, keeps the profits, and is personally liable for its debts.
Read definitionPersonal guarantee
A personal guarantee is a legally binding promise by an individual, usually a director or business owner, to pay a creditor if the borrowing business or person defaults.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.