How to Choose a Name for your new SMSF

Although choosing a name for your new SMSF is a somewhat cosmetic exercise it is one which often causes clients to spend a lot of time working through different options with some consternation. We have seen everything from TV characters, films, pop culture, books etch but it is important to remember that your new name will appear on official documents such as bank statements, investments and of course ASIC and the ATO so there are some good practice tricks we can use to make it easier.

Why does your SMSF Name Matter?

You are going to spend years if not decades with this name, so you want to ensure that it is something you are happy to have to read out, put on documents and sign off with for a long time. Think of it like getting a tattoo, you don’t want to outgrow it in a few years’ time and have to pay a lot to change it. It is also important not to pick a name for your new SMSF setup which causes confusion or that may cause delays with the public registers.

For the Super Fund itself there is no legal requirement to have a unique name (for example there are many dozens of “Smith Super Funds”) but the corporate trustee must have a unique name and so you will need to do a check on the ASIC website for name availability.

Ideal naming practices for your SMSF

1. Shorter the betterShorter names are easier to use on bank accounts, investment platforms, and paperwork as most have character limits so if we went with (to pick a silly name) the “Donald Trump White House SMSF Pty Ltd as trustee for the Donald Trump White House Super Fund” it will never show up properly on any documents. So “DJT SMSF Pty Ltd as trustee for DJT Super Fund” will achieve same thing with half the characters.
2. Avoid Unnecessary WordsTaking out words such as “the” or using “Super Fund” as opposed to “Superannuation Fund” will make it easier for the name to be short and easy to fit onto documents. Same with your company name, use Pty Ltd as the designation with ASIC not the full “Proprietary Limited” which will take up more characters unnecessarily.
3. Steer Clear of NumbersSometimes numbers work well but often they cause a level of confusion and practically can cause some issues on certain exchanges. As a general rule we advise clients to avoid using them where possible especially if there is no actual meaning behind them which means people will invariably mix them up.
4. Check Name AvailabilityWe generally recommend calling your corporate trustee something similar to your super fund name as when they are very different it can again cause confusion without reward. For example, Cooper SMSF Pty Ltd as trustee for Overton Super Fund is going to have banks/exchanges and advisers scratching their heads and double checking with you every time.
5. Avoid Confusing or Misleading TermsAvoid names that resemble large super funds or financial institutions, just because you can choose any name for your fund, calling it the Swyftx Super Fund just because you are wanting to invest there is not good practice and again, likely to cause plenty of confusion and delays with the ATO and other government authorities not to mention likely some annoyance from Swyftx!

Practical Naming for your SMSF

The easiest way to name your SMSF is often using your last name or your initials, for example:

• Super Cooper Pty Ltd as trustee for Cooper Super Fund
• Cooper SMSF Pty Ltd as trustee for Cooper Super Fund
• Cooper Super Pty Ltd as trustee for Cooper Super Fund
• EJC SMSF Pty Ltd as trustee for EJC Super Fund

However, depending on your personal circumstances you may choose not to use your own name such as if you are in a very public position for your employment or if you have other personal circumstances necessitating a lower profile. If that is the case, then we still recommend following the ideal naming practices of keeping it short and simple. For example, for fans of Sherlock Holmes you might use:

• Mycroft SMSF Pty Ltd as trustee for Mycroft Super Fund
• MH SMSF Pty Ltd as trustee for MH Super Fund

Summary

Although you have a lot of flexibility in choosing your own name there are some basic rules listed above that you can utilise to make your SMSF journey easier for the future. If you need help choosing your SMSF name or completing the rest of the SMSF Setup process, SMSF Australia is here to help throughout your SMSF journey!