Who needs to be licensed?

If you are in the business of buying, selling or exchanging trailers or caravans that are over a tare weight of 250 kilograms, you are required to be licensed under the Motor Dealers Act 1974 (the Act).

If you manufacture or assemble a trailer or caravan, you do not need to be licensed if you sell to a person licensed under the Act.

Licence requirements for dealers

Trailer and caravan dealers are required to comply with the Act and its Regulations. If you are the holder of a dealer licence, you should observe the following requirements.

Display of licence details

You must display a sign with your licence particulars at each place you are licensed to carry on business. These signs must display the type of licence you hold, the words ‘licence number’ followed by your licence number in a font that is at least 50mm high. These signs must be on display at all times.

Your licence number must also be displayed in any advertisement you use, including print and Internet.

Registers

You are required to keep a register at your licensed place of business. The registers must detail prescribed particulars of every trailer and caravan acquired and disposed of by your business in the course of carrying on business.

Exhibitions, fairs and shows

Licensees can offer and display new and demonstrator trailers and caravans at an exhibition, fair or show. You can advise customers on the quality, performance and characteristics of the trailer and caravan but you can only make and receive offers to enter agreements for their sale. Agreements can only be concluded at your premises.

Licensees cannot offer, display or sell second-hand trailers and vehicles an exhibition, fair or show.

Penalty for unlicensed trading

Unlicensed trading in NSW is an offence under s9 of the Act and can result in being issued with penalty notices of $5,500 and prosecutions with a maximum penalty of $110,000.

If you are unsure whether you need a licence, contact NSW Fair Trading on 13 32 20 or make an enquiry through the Business Licence Information Service (BLIS) at blis.fairtrading.nsw.gov.au. This website contains licensing guidelines and application forms.

Business name requirements

You can conduct business in NSW under your own name provided you do not change or add anything to your name.

To conduct business in NSW under any other name, you must register that name as a business name.

A company can conduct business under the company name without registering a business name. However, the company’s name must be reproduced in full and include ‘Pty Ltd’.

Display of business names

Once your business name is registered it must be displayed correctly.

Your business name must be:

• on public display at every place of business
• printed or written exactly as registered, on every business letter, invoice, receipt, or other document used by your business.

The Business Registration Certificate must be displayed in:

• the principal place of business (the place where most of your business is conducted)
• a spot that is conspicuous to the public.

Trading outside New South Wales

If your business name is registered in New South Wales and you trade or open a place of business in another state or territory, the name needs to be registered in that state or territory.

More information

NSW Fair Trading has a business names fact sheet available to provide you with more information. For a copy, go to the Fair Trading website at www.fairtrading.nsw.gov.au and download the fact sheet Business names or contact Fair Trading on 13 32 20.

You can view the Motor Dealers Act 1974 and Business Names Act 2002 and their Regulations from our website. You may also wish to seek independent legal or other advice if you believe that you may be affected by the legislation.