Steps in Registering a New Business in Australia.
When you plan to start a business, you are embarking on a venture that will be both exciting and terrifying. You will be your boss and may enjoy the profits if your business becomes successful. On the other hand, you will now have many responsibilities compared to those you had when working for a company.
Each country has its laws and regulations in registering a business. Even if you were successful in registering your business in your home country, you would still need to comply with other countries’ regulations to register your business with them. Nevertheless, here are the steps on how to register a business in Australia.
Deciding on Your Business Structure
A business structure is how your company is organized and categorized by jurisdiction. Your company structure will dictate your level of control in the company, the amount of tax you will need to pay your government, regulatory obligations, and your liability level. There are four types of business structures in Australia. (Business in Australia)
- Sole Trader. In this business structure, you are the sole owner of the business which means that you are responsible for your company’s aspects. However, you can hire employees to work for you, but these employees will not be held liable for any legal implications that your business may run into.
- Company. A company is a commercial entity that is legally separate from its owners. The owners may become company shareholders but are not the company themselves which means that they do not necessarily control the company. Instead, there is a board of trustees that regularly convenes to discuss company matters.
- Partnership. A partnership is composed of one or more entities that agree to run a business together but do not conform to a company’s definition. The decision making is made by all partners and not by a board of trustees.
- Trust. A trust is a business structure that holds assets on behalf of a third party.
It is important to decide on a business structure before you register a business. However, you may change your business structure as it grows and expands over time.
Choose Business Type.
Your next step is to choose what type of business you want to start. Are you planning on becoming an online business focusing on eCommerce or drop shipping? Are you looking to create a franchise out of your food-based business? If you are in the service industry, do you want to become an independent contractor? It is best to choose the type of business that will suit what industry you belong to.
Register a Business Name and Apply for an ABN.
It is best to apply for an Australian Business Number (ABM). While you can run a business without an ABN; this is not advisable. Most companies will not do business with somebody without an ABM. Likewise, you will need to register a unique business name.
There are many registered business in Australia, which means that the business name you are planning to use may have already been registered by somebody else. It is therefore important to register your business name to ensure that it is unique. Likewise, your ABN will allow you to have multiple business names.
Once you have registered a unique business name and an ABN, you can now legally start your business operations. Business in Australia.