Business Registration In Australia
Business Registration In Australia
Each year, many people in Australia undertake research into business registration in Australia.
The main reason behind this usually stems from a desire to commence a business.
There’s a natural excitement at the thought of soon being able to run your business and watching it grow (see Which Type Of Online Business To Buy?)
But it’s also important that you get the foundations right from the beginning.
This means understanding what it means to register a business in Australia, what it encompasses and how to go about it.
Let’s take a look at a few important points to help you through this initial consideration phase.
What Do We Mean By Registering A Business In Australia?
People who are new to business often think that business registration in Australia consists of simply registering a name for your business.
It’s understandable as it’s the name people usually see when they have any transactions with it, whether that be as a customer, supplier or other organisation.
But it could mean so much more.
- Do you mean setting-up the legal entity under which the business will be conducted?
- Do you mean applying for relevant identification numbers for the business, such as abn registration in Australia?
- Do you mean registering a business name under the structure?
Business registration in Australia is a somewhat linear process.
There are a number of steps to take, in order, to ensure that your essential registration requirements are met.
So what are they?
The Steps To Take To Register A Business In Australia?
It all starts with determining the legal entity that will be conducting your business.
Will you be operating through a company, trust, partnership or as a sole trader?
This is a question that shouldn’t be taken lightly and it’s best to discuss this with an advisor or someone else you trust.
Establishing the correct legal structure usually falls to your accountant, although a simple Google search will also show a number of online providers who can provide this service.
The cost of company registration in Australia includes an ASIC fee, of $538 (as of January 2023 for share capital companies), and can be more, depending on structuring advice received.
Keep in mind, any new company set-up has to ensure its directors all have Director ID numbers.
Once you have determined the right legal structure through which to undertake your business, you will then have to apply for relevant business registration numbers.
You won’t get far in establishing banking facilities, supplier agreements or other preparatory activities without these numbers.
These numbers will consist primarily of an Australian Business Number (ABN), Tax File Number (TFN) and possibly GST registration in Australia.
The ABR website allows you to apply for these registrations, in a timely manner although it’s important to realise that you may need further registrations (eg. PAYG Withholding).
Once the preceding two steps have been undertaken, you may then wish to register an actual business name.
People often confuse a registered business name with the name of the company.
The business name can be completely different to a company name, although some restrictions apply as to what words can be included in a business name.
Business name registrations in Australia are conducted through ASIC and can be undertaken for a 1 year or three year period.
Business registration in Australia can encompass a number of registrations and not simply just registering a name.
The steps are primarily sequential and it’s important you do things in the right order as getting it wrong means possibly having to reapply and incur more time and fees in getting it right.
But once you have the above steps done, you’ve achieved the basics of ensuring your business exists.
Now you’re free to build it!
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