Have you had a bad experience registering a business? Tell us your story.

The system overhaul migrated 84 million data records and 1.6 million existing business name registrations from state systems to ASIC's national register in May 2012.

The aim was a one-stop convenience service to create, maintain and cancel a business name online, requiring only one registration Australia-wide instead of multiple registrations state-by-state.

While purportedly set to save the public an estimated $480 million over eight years, the switch has resulted in a log-jam of angry entrepreneurs-in-waiting.

Luke Chiodo-Gurr was furious when continued delays prevented him from launching his business and life coaching venture.

“After being instructed that I could not register a new business name in early May 2012 until ASIC took over the administration on May 28, I had no option but to wait until that date before I could lodge my application," he said.

"At that time, the ASIC website claimed a three-day turnaround, yet week after week, month after month, no one could or would help finalise my business name registration.

“I've registered a business name in the old state system in 20 minutes. I just kept thinking this can't be happening.”

Without a name, Chiodo-Gurr couldn't establish the business basics – a bank account, office lease, BPAY facilities and business cards.

In December he gave up and began trading under his own name. Exactly 363 days after his initial application, he received confirmation that his business name was approved.

“By this time it was laughable. Of course, it was too late to be of any use to me.”

While Chiodo-Gurr had the wherewithall to survive the obstacles and has now built up a successful business under his own name, the delays have meant more serious setbacks for his clients.

“One client built up his brand, borrowed money, registered a domain name and printed business cards on the premise that the business name would be approved quickly. Months later he was still waiting and losing lots of money in the process,” Chiodo-Gurr said.

For Kylie Baderle, the months of being on hold trying to inquire after her business name application were enough of a disincentive for her to abandon plans for a design business.

“I'd been running a small business selling back-support cushions for about a decade while doing some freelance art and design work on the side. My dream one day was to go out on a limb and make art my business,” Baderle said.

A small monetary gift from her family spurred her into applying for a new business name with ASIC last October. After six months of waiting, she had lost her nerve.

“The delay just really put me off. I began to doubt the whole project. It just seemed all too hard.”

Chiodo-Gurr is not surprised people are giving up. “Starting up a small business is hard enough. Hold-ups on a simple thing like business registration is the last thing you want when you're motivated and passionate.”

Despite the red tape, over the past 12 months ASIC says it has facilitated the online registration of more than 260,000 new business names, 120,000 updates to the register and more than 14 million business name searches, and issued close to 500,000 business name renewals.

Bureaucratic bungles have caused delays, admits ASIC, citing the largest challenge as the switch from a largely paper-based service in the states and territories to online services.

“While over half a million of our online customers have been able to register or update their business name without a hitch, there have certainly been frustrations for some people using the new online technology or trying to ring us for help,” ASIC commissioner Greg Tanzer said.

“During the year we have heard the feedback and worked hard to enhance our systems, and also to offer alternatives to encourage our customers online. We have increased the number of staff working in our client contact centre in order to better help our customers, and we are grateful to receive increased funding over the next two financial years to help us continue to improve this valuable service”.