Before you sign an $80,000 supply agreement, do you know whether the company on the other side legally exists? It sounds like a silly question until you meet a business owner who found out too late that the entity named in their contract had been deregistered months earlier. They had a signed document, a delivery schedule and nobody to chase.
Checking a company’s ASIC status takes about ten minutes and costs little or nothing. It’s one of the cheapest forms of protection available to a business owner. Here’s what to look for, how to read the results and which red flags should make you pause.
Why Check a Company’s ASIC Status Before Signing?
A contract is only as good as the party you’ve signed with. If that party is a company, its legal status determines whether it can enter agreements, own assets and be held to its promises. A company that’s been deregistered or is under external administration can leave you with an agreement that’s hard or impossible to enforce.
The check also confirms who you’re really dealing with. Many businesses trade under a catchy name that isn’t the legal name on the register. Matching the name and company number in the contract to the official record closes that gap.
What Details Should You Look For?
When you run a search, you’re building a small picture of the company. These are the things worth noting:
- The exact legal name and the ACN (Australian Company Number)
- The status, such as registered or deregistered
- The company type, such as proprietary limited
- The registration date, which shows how long it’s existed
- The registered office and principal place of business
- The current directors and secretary
- Any sign of external administration
Write down what you see, and save a dated copy. If a dispute ever comes up, you’ll be glad you recorded what the register said on the day you signed.
How Do You Run an ASIC Search?
The process is simple once you’ve done it. ASIC’s basic search results are generally free, although some extracts and documents carry a small fee. Here’s a sensible order:
- Get the exact company name or ACN from the contract or the other party.
- Search ASIC’s company register using the ACN where possible, since names can be similar.
- Read the status line and the registration details.
- Look up the ABN on the Australian Business Register’s ABN Lookup to see whether it’s active and whether the entity is registered for GST.
- Check published insolvency notices for any liquidation or administration activity.
- Search the register of banned and disqualified persons for the directors.
- Save or print the results with the date.
What Do ASIC Status Terms Actually Mean?
The word “registered” is what you want to see. It means the company exists and is in good standing on the register. Other statuses deserve more attention.
- Deregistered: the company has ceased to exist as a legal entity.
- Strike off action in progress: ASIC has started the process of removing the company, often because documents or fees are overdue.
- Under external administration: a liquidator, administrator or receiver has been appointed.
A company can move between these statuses faster than you’d expect. Treat a search as a snapshot, not a guarantee. If anything other than “registered” appears, pause and ask questions before going further.
What Red Flags Should You Watch For?
Some warning signs show up on the register itself. The legal name might differ from what’s in your contract. The ABN might be cancelled or belong to a different entity, or the company might be only a few weeks old while claiming years of experience. A sudden change of all directors can also be a signal, as can overdue lodgements or an unpaid annual review.
None of these automatically mean trouble, but each is a reason to ask for an explanation. A reliable counterparty will answer straightforwardly. Overdue lodgements in particular often trace back to weak corporate services behind the scenes, so it’s worth understanding what good housekeeping looks like. If the story keeps changing, take that as information too.
What About Trading Names and Trusts?
Here’s a scenario that catches people out. A contract names “Harbour Plumbing”, but the legal entity behind the name is “Harbour Plumbing Services Pty Ltd as trustee for the Harbour Family Trust”. You need the contract to name the correct legal entity, including its trustee capacity, otherwise you may struggle to enforce it. This is where the ACN earns its keep.
Matching the entity details to its GST status is another small but useful step. If you’re unsure why a counterparty’s registration matters when you’re paying invoices, an overview of GST services explains the basics. An active ABN with the right GST status tells you the entity is set up to issue valid tax invoices.
When Should You Check Again?
Once isn’t always enough. For larger or longer contracts, check at signing, again before major payments and again if something feels off. Companies can slip into trouble mid contract, and an early warning gives you room to protect yourself.
Keeping tidy records helps here, since good bookkeeping and accounting lets you see payment histories and spot customers or suppliers who are slowing down. A customer who used to pay in 30 days and now takes 75 is telling you something. Pair that with a fresh register search and you’ll usually know where you stand.
What to Take Away Before You Sign
Checking ASIC status before signing is quick, cheap and surprisingly powerful. Confirm the legal name and ACN, read the status, look up the ABN, check for insolvency notices and save a dated record. If anything doesn’t line up, ask questions before you commit.
A fifteen minute search won’t guarantee a contract will go well, but it removes one of the most avoidable risks. If you’re building a wider plan for how you manage risk as the business grows, strategic planning is a helpful topic to explore. This is general information and not personal advice, so take legal or accounting guidance on larger deals. When did you last check the company on the other side of your most important contract?
Frequently Asked Question
How do I check if a company is registered with ASIC?
Search ASIC’s company register using the company’s name or, better still, its ACN. The result shows the legal name, status, company type and registration date. Using the ACN is more reliable because company names can be very similar. Save or print the result with the date so you have a record of what the register said when you checked.
What does “deregistered” mean on the ASIC register?
It means the company has ceased to exist as a legal entity. A deregistered company can’t enter agreements, own assets or be held to its promises in the usual way. If you find this status on the other party to a contract, stop and ask questions before going any further.
Is it free to search the ASIC register?
Basic search results are generally free, although some extracts and documents carry a small fee. For most pre-contract checks the basic information is enough to confirm the name, ACN and status. Check ASIC’s website for current fees if you need a full extract.
What does “strike off action in progress” mean?
It means ASIC has started the process of removing the company from the register, often because documents or fees are overdue. The company may still be registered for now, but it’s a clear warning sign. It’s worth asking the other party what’s happening before you sign or make a payment.
How do I check if an ABN is valid and active?
Look it up on the Australian Business Register’s ABN Lookup. It shows whether the ABN is active, the entity name and whether the business is registered for GST. An active ABN with the right GST status tells you the entity is set up to issue valid tax invoices. Make sure the name on the ABN matches the name in your contract.
How can I tell if a company is in liquidation or administration?
Check the status on the ASIC register for any sign of external administration, and look at published insolvency notices. A liquidator, administrator or receiver being appointed means the company is no longer under its directors’ normal control. That can leave a contract hard or impossible to enforce, so it’s a reason to pause.
What red flags should I look for when checking a company?
Watch for a legal name that differs from your contract, a cancelled ABN, or a company that’s only weeks old while claiming years of experience. A sudden change of all directors, overdue lodgements or an unpaid annual review can also be signals. None automatically means trouble, but each deserves an explanation.
How do I check who the directors of a company are?
The ASIC register lists the current directors and secretary. You can also search the register of banned and disqualified persons to see whether any director is barred from managing a company. Recording the names with the date of your search is useful if a dispute arises later.
