You want to set your business up in Australia, but you’re unsure what steps you need to take first? Want to learn more about what it will take to open your business in Australia? This article will tell you the requirements needed and answer some of the most common questions asked.
The process to open your own business in Australia is quite simple. All you need to do is gather the appropriate documentation and figure out where you would like to operate and what type of business you would like to start.
10 Requirements to Open Your Business in Australia
There are many steps to go through before legally opening a business in Australia. If you are operating your business under a different name from your own personal name, you must register the business name first. The following are the primary requirement to open a business in Australia.
1. You Must Be A Citizen or Permanent Resident
Your eligibility to open a business in Australia may depend on your residency, age, criminal history and whether you have access to the required funds. To open a business in Australia as an individual, you must be a citizen or permanent resident of the country. In addition to proof of citizenship or residency, you will need to provide documentation that shows your age.
2. Be 18 Or Older
It would help if you were 18 or older to run a business in Australia. To register a company, you must be 16 or older. If you are under 18 years old, you will need parental permission to open your business. You will also need to submit records that show any previous business experience. Some businesses may require entrepreneurs to pass tests before officially opening a business.
3. Obtain A Tax File Number
If you want to work for yourself, you’ll need a tax file number (TFN) from the Australian Taxation Office. This is your unique ID number and will make managing your finances far easier. As soon as you have decided on a name for your company, visit ato.gov.au/business/ starting-running-business/start-your-own-business/apply-tax-file and fill out an application form or call and apply over the phone. It takes about five minutes, and once you’ve registered your TFN, it stays with you even if your business structure changes—and that’s especially important if you are starting out and still figuring things out.
4. Check Health and Safety Regulations
Before launching your new venture, you must have a strong understanding of any regulations that may affect your idea. For example, selling products directly to consumers is generally easier than selling wholesale; however, many regulations and state laws regulate businesses that sell direct-to-consumer. Check out your local county or city government website or do an internet search for any health or safety regulations that may apply to your niche. You should never begin a new project without being adequately equipped with all necessary permits and certifications—and don’t underestimate how much time those can take.
5. Register Your Business Name
Registering your business name is simple, and you only need to do it once. You can register your name at any time, whether you are just starting out or well into your first year of operation. Visit one of Australia’s state registries or call them if you are uncomfortable with online forms. It is worth noting that while it will take a few days for your name to be approved by all of Australia’s state registries, registration should take less than 10 minutes in total.
Remember that you will also need to apply for an ABN, GST registration and tax file number. Depending on your business model, you may also need a range of other permits and registrations. When it comes time to open a bank account, you’ll need an Australian Business Number (ABN) or Australian Company Number (ACN). You can get these details from ASIC’s National Companies Register.
6. Get Insurance for Your Business
No matter what type of business you have, you should find a business insurance policy. Keep in mind that each policy varies, so make sure you’re getting coverage that makes sense for your needs. Shop around with at least three companies and compare policies so you can get an accurate picture of how much coverage is right for your business. Protect yourself from potential financial loss by getting smart about your new company or LLC insurance.
Compare rates online, then call up insurance providers directly to see if they’ll match any other quotes. You might want extra liability protection because it covers liabilities when employees act on behalf of your company—or maybe not if most of your workers are independent contractors.
7. Get A Business Banking Account
There are a few things you’ll need to do before you can register your new business with ASIC. The first is getting a tax file number (TFN) and setting up a business bank account for your new enterprise. Setting up an Australian Business Bank Account will require some personal details, including your company name, ABN and any employees or contractors who may be working for you.
In addition, it would help if you have a list of customers that you intend to target when promoting your services. Finally, you save yourself time by providing as much information about your business as possible, especially if you’re seeking funding from private investors or banks.
8. Report to the Revenue Commissioners Office
Every year, thousands of companies operating in Ireland must submit a report to Revenue. But what exactly is a return? A return is essentially a snapshot of your company’s financial performance at a certain point in time.
Report to the Revenue Commissioners Office there’s no getting away from it – you must file your annual report with Revenue on or before 30 September each year. It’s important to note that even if you don’t have a turnover of €5,000 in a year, you still must file an Annual Return with Revenue.
9. Apply for an ABN (Australian Business Number)
Launching a new business without an ABN will make it difficult for you to do day-to-day activities like opening a bank account, ordering goods from suppliers and registering your business with government agencies. The best way to obtain an ABN is by visiting the Australian Taxation Office website and completing Form 1828 – Application for an Australian Business Number (ABN). It usually takes less than 10 minutes.
At least one of your team members will need to be contactable by phone, email and physical address. You’ll also need to select a tax file number different from an ABN. It’s issued by the Australian Taxation Office (ATO) once you lodge your first income tax return.
10. Set Up Payroll When You Have Employees
You are legally obligated to withhold payroll taxes, and file payroll tax returns each quarter. You will also want to ensure that your employees are being paid on time and correctly—and that you’re meeting minimum wage requirements. If you have employees, set up a payroll system right away. It can save you thousands of dollars in penalties later if you don’t.
Setting up a payroll service is a good option for many businesses. You won’t need to worry about payroll taxes or filing, and you won’t have to worry about maintaining employee records or filling out paperwork for government agencies. However, it does cost money — so make sure you can afford it before signing on with one.
Conclusion
You’re now equipped with this list of requirements to open your business in Australia, so hopefully, you can progress without much trouble. Although other formalities depend on the type of business you are looking to open, there are some basic requirements you will need to provide before establishing a business in Australia. You will be required to outline your plan, including your name, address, structure, and registration type.
FAQs
1. What can I do if I want to start a business in Australia?
If you are not an Australian citizen or permanent resident, you will need a visa to work in Australia and open a business. Several visas might suit you, depending on your circumstances.
2. What are the requirements to open a business in Australia?
There are many factors to consider when opening a business in Australia. Each Australian state has different requirements for business owners and the type of industry that you’re working in.
3. What requirements do I need to meet to get a business name?
To get a business name, there are some basic details you’ll need to provide. These include your type of business structure, ABN and contact details. You also need to make sure that no one else is using the name you want for their business and that it follows the rules for naming businesses in Australia.
4. What type of business structure do I need to set up?
The two most common structures for businesses are a sole trader (sole proprietor) or a company. Each has its advantages and disadvantages. A registered company offers limited liability.
5. How should I choose a name for my business?
It’s essential to have a name that reflects what your business does or intends to offer customers. You can search the Australian Securities & Investment Commission website to see if any other companies registered with a similar name in Australia or abroad.
References
https://business.gov.au/planning/business-plans/starting-a-business-checklist
https://www.executivecentre.com/en-au/blog-article/your-guide-to-starting-a-company-in-australia/
https://www.legalzoom.com/articles/7-tips-for-choosing-a-business-name