Starting a business - it’s one of the most daunting and exciting things you’ll probably ever do.
There is so much to do before you can even start thinking about inventory, marketing, accounting software and the like.
Starting a business is a marathon, not a sprint. Take things one step at a time to ensure you have covered the essentials, i.e. registering your business.
How do I register my business?
Business covers four key areas:
- Applying for an Australian business number (ABN)
- Applying for an Australian company number (ACN)
- Registering a business name
- Registering for goods and services tax (GST)
Do I need to register an ABN?
An ABN is a unique 11-digit number used by the Australian government, e.g. the Australian Taxation Office (ATO) to identify businesses in Australia.
Every business needs an ABN - regardless of whether you operate under a sole trader, partnership, company or trust business structure.
How do I register an ABN?
There are two ways to apply for an ABN:
- Apply online yourself via the Australian Business Register
- Apply via an online ABN registration service
What are popular ABN registration services?
Popular ABN registration services include:
- Lawpath
- ABNassist
- EasyCompanies
- ABNApply
- EasyABNs
- eCompanies
How much does an ABN cost?
The cost to apply for an ABN yourself on the government website is free.
Applying via an online ABN registration service usually costs around $50.
What are the benefits of using an online service to register an ABN?
There are some advantages of going through an online service such as:
- Your application will be accelerated and you will usually receive your new ABN within 24 hours.
- Some providers also include additional services within the flat fee including business name search, software offers and an initial business plan consultation.
What documents do I need to register an ABN?
To register for an ABN, you will need to provide the following information:
- Tax file number (TFN)
- Your personal and business contact details
- The location(s) where you will be operating your business
What can I do when I have an ABN?
Getting your ABN is a gateway to starting a new business venture. When you have an ABN you will be able to:
- Register a business name
- Get a business website domain
- Register for good and services tax (GST) and pay as you go withholding (PAYG)
- The payments for your invoices won’t be withheld (clients must withhold 47% of the total amount if an ABN is not quoted on the invoice)
Do I need to register for an ACN?
You only need to register for an Australian business number (ACN) if you have chosen to operate under a company business structure.
Unlike a sole trader business structure, a company is its own legal entity and has different tax rates and liabilities.
An ACN is a unique 9-digit number used to identify your company.
How do I register an ACN?
Company registration in Australia is handled by Australian Securities & Investments Commission (ASIC).
You have two option to register your company:
- Register a company yourself by completing a paper Form 201. If you do it this way, you must lodge it directly at your nearest ASIC office or via post.
- Register a company through an agent. They have the ability to lodge the application online
How much does company registration cost?
The current fee to lodge your ACN application directly through ASIC is $426. You will also receive a certificate of company registration.
Note: If you lodge yourself you will not receive the documentation required to be compliant with the Corporations Act 2001.
If you go through a registered agent, you can expect to pay between $600 to $700 for a simple registration.
There are add-on fees for additional services such as ABN registration and TFN applications, so always confirm what the total cost includes.
How do I choose a good ACN registration service?
Here are a few questions to consider to ensure you choose a great ACN registration service:
- Will they provide the relevant documents required to be compliant with the Corporations Act 2001?
- Is the service automated or can you speak directly with an agent about your application?
- Does the price include a printed and PDF version?
- How much help and advice will they be able to provide?
- What exactly is included in the fee breakdown?
What are the benefits of using a company registration service?
Setting up a company and ensuring you’ve ticked all of the legal boxes can be stressful enough, let along all of the additional things that come with starting a business.
While it’s cheaper to register an ACN directly with ASIC, paying a bit extra with a company can offer the following benefits:
- Apply for an Australian business number (ABN) and tax file number simultaneously
- Get your ACN and official certificate of registration much faster
- Get an application of shares and share certificates (if applicable)
- Apply for PAYG registration
- Apply for GST registration
What information do I need to register a new company?
To register a new company you will need to provide the following:
- Company name
- Registered office address
- Business address
- Director/secretary details
- Shareholder details
What are the legal requirements for companies?
There are additional legal requirements for companies as specified by ASIC:
- Set up a registered office, place of business and directors
- Create and maintain your business name
- Update ASIC on key changes
- Keep financial records
- Pay fees to ASIC
- Check annual statements
- Get professional advice if you need it
Do I need to register a business name?
A business name is a name your business operates under. In addition to logistics, a business is also carefully chosen for branding purposes.
If you operate as a sole trader or partnership, you must register a business name unless you choose to operate under your or your partner’s first name and surname.
For example, if your name is “Joe Bloggs” you do not need to register a business name if that will be the name you trade under.
However, if the name of your business is “Joe Bloggs & Co”, you will need to register a business name.
You must also register a business name if you have a registered Australian company and you operate under the same name as your company’s name.
How do I register a business name?
Before you can register a business name you must have:
- Chosen a business structure
- Have an ABN or be ready to apply for one when you register your business name
- Checked the availability of your business name
Once you have ticked off the above, you have two options to register your business name:
- Register your business name via the Business Registration Service
- Use a business name registration service
How much does it cost to register a business name?
The cost to register a business name with ASIC is $37 for one year or $87 for 3 years.
If you use a paid service, you can expect to pay around $70.
Popular business name registration services include:
- eCompanies
- TradingAs
- EasyCompanies
What are the benefits of using a business name registration service?
Reasons why you should consider using a business name registration service include:
- Hassle-free
- You can apply for an ABN simultaneously
- Business name renewals
- Easy name search
- Save time with quicker processing and turnaround times
- Additional website domain registration for a small additional fee
What is the difference between a business name and a trading name?
Prior to the National Business Names Register on 28 May 2012, businesses could use an unregistered trading name.
It’s now a legal requirement to register your trading name as a business name.
How do I register for business taxes?
Once you have registered an ABN you can start registering for the appropriate taxes. Business taxes include:
- Goods and services tax (GST)
- Pay as you go (PAYG) withholding
- Fringe benefits tax (FBT)
- Luxury car tax (LCT)
- Fuel credits tax (FTC)
- Wine equalisation tax (WET)
There are two ways to register for taxes:
- Register yourself via the Business Registration Services
- Use a registered tax registration service (or add this as part of a complete business registration package)
What are the benefits of using a business tax registration service?
Tax can be confusing at the best of times. Hiring a tax accountant or adding tax registration to a business registration package is often a much easier way of getting everything done (and doing it correctly).
Do I need a business license or permit?
Business licenses and permits allow your business to do certain types of activities. The permits or licenses your business needs depends on things like:
- Industry
- Type of business
- Business activities
- Business location
You can review the type of licenses you may need by searching on ABLIS.
What is a business registration package?
There's a lot to cover when starting a new business, which is why many people opt for a complete business registration package.
This takes the pressure off you and frees up your time to organise and arrange the other moving parts of starting a business.
How much do business registration packages cost?
Business registration bundles prices vary according to business structure, the services you require and any additional produce or service add-ons.
To give you an idea, sole trader packages cost around $150 and a company package is around the $700 mark.
Are you ready to start your business?
If you have any questions you can always reach out to our community members or get expert advice from a business consultant.
