It’s an exciting journey starting a business. it can also be stressful and overwhelming. You most likely have lots of questions if you are starting a business in Australia.
We’ve got you covered!
As you move from Idea to start-up, here are the steps you need to undertake:
Create a business plan
Making a business plan is the first step in launching a venture in Australia. A business plan gives a high-level summary of the business’s nature, how it will operate, market opportunity, key personnel, financial predictions, and other important elements.
Your business plan will be useful later on when you want to apply for finance. A thorough business plan might show investors that you have done your due diligence. If this is your first business venture and you don’t have a track record, a well-written business plan is very important.
Choose a business structure
The structure of your organization must then be determined, and the best option must be chosen based on your requirements. For businesses based in Australia, there are a few options:
Sole proprietor: A sole proprietorship is a simple business structure to set up and run. While sole proprietors are still permitted to employ staff, they are personally liable for all business-related obligations and losses.
Company: A company is a separate legal entity and can incur debt, sue, and be sued. A company structure is more complex than a sole trader and has various tax and legal obligations to comply with.
Partnership: In a partnership, two or more people run the business together, but not in the form of a company. They distribute the business’ income and losses amongst themselves.
Trust: In a trust structure, the trustee, who may be an individual or a firm, manages the affairs on behalf of the beneficiaries or trust members. The trust’s earnings and losses are the trustee’s responsibility.
Do well to consult a business counselor, lawyer, or accountant for advice on the structure that is best for your objectives since each structure has different tax and legal duties.
Select a business model
It’s time to select a business model once you’ve determined how your company will be structured. As market demands and consumer behavior evolve over time, you can change your business model to suit.
Secure a funding source
The next stage after selecting your business model is to look for and acquire capital for the business. This is a key phase, and you should start by determining how much money you’ll need and what your best options are for getting it. It is essential to start early because this process can take a while.
Pick a business name
You must register your business name in Australia unless you or your company partner are doing business under your first and last names. Depending on how you look at it, this process could either be enjoyable or stressful.
Make sure the name you select stands out from your competitors and fits your business. To ensure that you have exclusive use of it in Australia, you must first ensure that it is available and register it.
Get a business addressÂ
When registering a business, you must have a working address. This should be your primary place of business, hence, a PO box is inappropriate. The Australian Securities and Investments Commission (ASIC) will send your documentation to this address.Â
Select company officeholders
At least one director must be an ordinary resident of Australia in order to register a company there.Â
They must also give written consent and list their name In order to register the business.
Register your company with ASIC
 The next step is to register your business with ASIC if you choose to structure it as a company. This can be done online. A certificate of registration and an Australian Company Number (ACN) will be sent to you.
Apply for an ABN
What is an ABN?
An 11-digit identification number unique for your business known as an Australian Business Number (ABN) acts as a means of identification. This is required to track business-related activity. It is different from ACN which is only necessary for businesses that are registered as companies.
Every Australian business needs an ABN, but only businesses that are registered as companies need an ACN.
An ACN, or Australian Company Number, is a unique, nine-digit number that’s issued to a company by ASIC when registered. It must be displayed on all company documents.
Get a Tax File Number (TFN) for your business
A TFN is required if you run a partnership, company, or trust for your business. When filing their tax returns, sole proprietors are permitted to use their own TFN. The process can be made simpler by applying for your business TFN and ABN at the same time.
Register for GST (Goods and Services Tax)
You must register for GST after your company’s sales surpass the threshold, which is presently $75,000. Businesses in Australia have 21 days to do this. The majority of businesses can register for GST as soon as they obtain an ABN, and they need to do so if they anticipate reaching the GST threshold in their first year of operation.
Register your business name with ASIC
It’s not the same as registering your business with ASIC. Once you have your ABN, you can register the business name you’ve selected with ASIC. You’ll need your ABN, name and contact information, the name and contact information of the primary place of business, your choice(s) of name(s), payment information, and more to complete this.
Register your website domain name
Choosing and purchasing your business domain name is the next action you should take after registering your business name.
This is important because it is the address for your website. After obtaining your ABN or ACN, you must complete this step if you want to register a “.com.au” domain. This verification is not necessary for a simple “.au” address, and you can register for it at any time.
Open a local bank account
It would probably be a good idea to open a local bank account for your business at this time. If you’re a sole proprietor, you can use your personal account instead of opening a special business account. However, combining personal and company accounts adds unnecessary complexity to a lot of situations. In Australia, separate bank accounts are necessary for any other business structure.
Apply for required licenses or permits
Many businesses in Australia will require specific licenses, permits, and other paperwork in order to legally operate. The specific paperwork required differs by industry, so the easiest way to find out which ones you require is to visit the Australian Business License and Information Service’s official government website.
Obtain business insurance
Many businesses will require insurance. Examples include insurance for valuable commercial assets, stock, and products, workers’ compensation, general liability, and professional indemnity.
Consult an insurer, a licensed insurance broker, or a business counselor if you’re unsure of the type of insurance you need to ensure that you’re adequately protected.
Set up an accounting system
Lastly, for tracking and managing your business money, you probably want accounting software in place. Tracking income, expenses, payroll, and other financial data can get more challenging as your business expands.
There are various products available to help with this, but for many organizations, current cloud-based software is the best choice because it gives you access to your data from any device at any time and allows you to see your financial situation in real-time.
