Starting a brand-new company venture can be a really thrilling experience. However, you must confirm that your company is legitimate and that you are in accordance with all applicable local rules and regulations before you begin trading. Do you want to discover how to transform your start-up from a clever idea into a functional company? Here’s our step by step guide for how to register a business in Australia.
Benefits of Registering a Business in Australia
- Australia promotes free trade and has trade agreements with multiple countries including New Zealand, Thailand, Singapore and the United States of America.
- Due to the government’s pro-business policies, investors can obtain incentives through the Australian Trade Commission (Austrade) which helps the international companies’ trade goods and services from Australia. The commission also identifies potential investment projects and business alliances who want to register their company in Australia.
- Australia supports world-class, globally significant research and development activities and is backed by solid infrastructure, generous investment into R & D activities, incentives for businesses whose area of major is in Research, and strong intellectual property protection.
- Over 96% of the businesses in Australia are small businesses. The authorities are always ready to help such businesses grow by providing a whole suite of services to assist in the accomplishment.
- A company setting up a business in Australia need not worry about the political disturbance. The Australian economy is stable and is ranked as one of the 20 largest in the world, around the same sizes as the four most dominant Western Europe countries.
How to Register a Business or Company in Australia
A company registration in Australia can be done through the following steps:
1. Choose Your Business Structure
You must first decide on a business structure. This impacts a number of things, such as the amount of control you have over the company, your personal liability for the company, the licenses your company needs, and the tax bracket the company will fall under. Although it’s crucial to pick a business structure that works for your operation, your initial decision doesn’t have to stand forever. If your company grows or shrinks in the future, you can alter your organizational structure. There are a few various business structures to pick from, such as:
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Sole trader – As a sole trader, you’ll be responsible for every aspect of the business. This is the simplest business structure, and it’s very easy to set up and operate. Although sole traders have fewer reporting requirements, it’s important to remember that they also have unlimited liability, so if the business fails, your personal assets may be at risk.
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Company – Unlike partnerships or sole traders, companies are separate legal entities. It’s a more complex business structure to set up and involves higher costs, but you won’t be liable for any of the debts that the company incurs.
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Partnership – A partnership is a business structure consisting of two or more people who share control of the business. There are three main types of partnerships: general partnerships, limited partnerships, and incorporated limited partnerships.
Once you’ve decided on a business structure, it’s time to move onto the legal aspects of how to register a business in Australia.
2. Apply for an Australian Business Number (ABN)
The Australian Business Number (ABN) is a unique, 11-digit number that is used to identify your business to the government, banks, and the wider community. It enables you to claim goods and services tax (GST), claim energy grants credits, avoid pay as you go (PAYG) tax, and get an Australian domain name.
To get the ABN you will have to provide a set of details, which include:
- Personal details
- Business information
- Associate details
- Reason for application
- Business activity details
- A declaration form denoting that the information you have provided is true
Once completed, you will receive an email confirmation of approval for getting the ABN.
3. Register Your Company Name
Finding out how to register a business name in Australia is the next task. The name under which your company conducts business is simply your business name. It sets you apart from your rivals and aids in building an emotional bond between your company and its clients.
You must register your company name in the Australian Business Register before forming a company. To prevent violating the legal rights of another person, check the ASIC (Australian Securities and Investment Commission) website to see if the business name you desire is accessible. Register for it if it isn’t already taken. In Australia, it costs $34 AUD for one year and/or $79 for three years to register a business.
Learning how to register a business name in Australia is a simple process. Here’s a guide detailing everything you need to do:
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First, you need to check whether a business name is available.
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Then, you should double-check whether you need to register the name. If you’re trading under your own name, you don’t need to register.
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Finally, you need to officially register the name. You can do this online with the Australian Securities and Investments Commission (ASIC).
Remember, your business name is usually the first thing anyone knows about your company, so it pays to put some thought into it. Pick a name that’s short, memorable, and easy to pronounce.
The next step is to apply for a Tax File Number after receiving the ABN.
4. Get a Tax File Number (TFN)
Finally, in order to make sure you’re registered for the appropriate taxes, you’ll need to obtain a Tax File Number (TFN).
You just need to use your unique TFN if you’re a solo proprietor. However, companies, trusts, and partnerships in operation will require their own TFN.
Applying for a TFN is relatively easy, as you can apply online.
Only when the GST turnover is $75000 AUD or more is it necessary to register for goods and services tax. If you are not registered for the GST, make sure each month that you have met the eligibility requirements.
Apart from this, you must also register for Pay-As-You-Go Withholding and a bank account in the name of the company.
Documents Required to Set Up a Company in Australia
- Certificate of incorporation
- Operating Agreement [a document that outlines the financial and functional decisions of the business]
- Detailed business plan
- Insurance policy
- Non-disclosure agreement
- Business license
- Contract documents
5. Register Your Website Domain Name
Your domain name is your website address on the internet and gives your business an online identity or brand for your customers. Here ABN is required if you want to buy a ‘.com.au’ or ‘.net.au’ web address.
You can search the availability instantly for your preferred website domain here.
6. Build a Website for Your Business
A business’s online presence, regardless of industry, can have a massive impact on its success. In this day and age, some businesses still don’t realize that a majority of their customers will visit their website before making a purchase.
Having a strong online presence, particularly a website, can be make or break for generating more revenue.
Here are the top reasons it’s important for your business to build a website:
- Credibility
- Branding
- Free Leads
- Organic Traffic
- Saving Your Time + Customer Service
- Updates And Announcements
- Digital Marketing
How can we help you Register a Business in Australia
Starting a business and choosing the right structure can be hard, but it doesn’t have to be if you have the right advice. Statewide Business Accounting specialize in business accountancy services for businesses of all size, structure and industries. With over 30 years’ experience, our expert staff can help you to set up, manage, report and meet compliance requirements.
We are certified practicing accountants (CPA) and have been servicing the Brisbane inner south suburbs of Coorparoo, East Brisbane, Norman Park, Morningside, Cannon Hill, Camp Hill, Carina, Holland Park, Annerley and Greenslopes areas for over 30 years.
Conclusions
Now that you know how to register a business in Australia, your business should be completely above board and ready to start taking orders. In the early stages of any start-up, it’s important that you have a healthy cash flow. Without a steady stream of income, it’s very easy for financial hardship to derail your business before it’s really had a chance to grow. Contact us to get all the professional help for your new business in Australia.