Australia is the world’s smallest continent, but it is also one of the biggest countries. It is situated between the Indian Ocean and the Pacific Ocean in the Southern Hemisphere. There are regions in the country that are wet and cool, but a significant portion of it experiences plenty of sunshine every year. If you want to thrive in this country by establishing your own company, the process begins when you register a business in Australia. Registering your business means you are making everything official.
What happens when you register your business?
When your business is registered, the tax you receive is at the appropriate rate. Your registration can also protect your business ideas and brand, as well as avoid penalties. You can maintain the right insurance coverage for your employees and your business itself. Your business will have its own financial, bookkeeping, and legal responsibilities. Each business industry follows different regulatory requirements and legal obligations, so know what applies in your business type.
Apply for an ABN before you register your business
In Australia, you need to own an Australian Business Number before you can set up a company. Your ABN consists of 11 digits that are unique and identify your business for the government.
Choose the name of your business
When you register your business, it also comes with picking a name for it. For this, you may use a name that you have reserved with the ASIC (Australian Securities & Investments Commission), your Australian Company Number if you have been issued with this, and the one you choose yourself for your business.
The business name you want mustn’t be owned and registered by another existing company. Also, certain words require special approval to be used as your company name.
Find out if you can use your company name
The business name is something that you use if you are operating your business. This is where you need the ASIC to find out if the name you choose is available. Go to their website and search your business name. In case it is not available, you need to change the name you decide to use. You will eventually find the one that is suitable for use and available at that.
Confirm the structure of your business
Selecting a business structure is also included in the process of registering your business name. Your business type and size are factors that contribute to your choice of business structure. How you want to operate your business also determines your structure. The common structures for businesses are:
It is a separate legal entity and more complex and reduces your liability.
The owners of this business structure typically consist of two or more who divide both income and losses.
In such a case, a trustee is someone who runs the business operations.
- Sole trader
This is the most basic structure, providing you with full control of the business.
Every business structure impacts your tax, set up costs, asset protection, and so on. As you expand and grow your company, you may change your structure several times as long as your business exists and in operation.
Completing the process of online registration normally takes about 15 minutes. Once you have submitted all the essential documents to register a business in Australia, and send a payment for it, expect to receive a confirmation in two to five days.