When Is a Business Name Required?
Any business operating in New South Wales must register a Business Name with the Office of Fair Trading. The Australian Securities Investments Commission (ASIC) governs the operation of company names. If a company wishes to carry on a business, yet trade under its specific company name, in certain circumstances it will not be necessary to register a business name.
Purchasing a Business
To purchase a business without investigating and having a proper understanding of the financial statements and history of the business can bring disastrous results. We can provide comprehensive advice and access to consultants who can assist you in determining the viability of a business, the price being asked for it the proposed structure and best means of acquisition.
Leases of Commercial Properly
An existing lease can be transferred to the incoming purchaser of a business provided all arrears of rental and other obligations of the existing tenant have been performed.
The current rental, the means of reviewing that rental, the availability of an option, calculation of outgoings, insurance and signage obligations are all important aspects to consider when seeking to have the benefit of an existing lease or entering a new lease. We have extensive experience in the drafting and negotiation of commercial leases and their interpretation.
There will be occasions when unfair or unconscionable clauses in leases can be set aside. However, the Courts will be reluctant to intervene with a commercial deal struck between two parties having equal bargaining power. For this reason it is essential legal advice be sought on all commercial leases.
Other benefits often attach to a lease, including the availability for car parking, signage rights on the building and sub-letting, all of which require special attention.
Legal Costs
On the sale of a business each party will pay their own legal costs.
On a commercial lease, traditionally it has been the case that the tenant will pay the owner’s solicitor’s costs of preparing the lease, having it registered and any fees charged by an existing mortgagee to consent to registration of the leases.
On a retail lease, the tenant does not pay the landlord’s preparation of lease costs.
