Are you excited about your brand-new business taking its baby steps? Now, it’s time to think about brand awareness and raising capital with minimum liability.
Before taking your company to the next level, you must make sure your business is legit. Besides, it should comply with the local rules and regulations. You must keep in mind the norms that are crucial in the business venture in a city like Australia which is a full-fledged economy and has various sectors.
So, to understand better how to register a company in australia this guide will walk you through the essential steps and more.
Why Should You Register Your Company?
Before covering the steps, it is essential to understand the importance of registering a company in Australia. This is primarily because the process will help you turn your brilliant idea into a business entity.
Here are some benefits that come with registering a business in Australia:
- Your business’s ability to raise money and attract investors will become better with registration.
- Upon registration, the company becomes a separate entity which means the debts attached to the company will not affect your assets.
- The registration will give your business a wide range of tax deductions for repairs, maintenance, and training.
- Registration also helps in avoiding conflicts among the founders.
- It is also crucial for future dealings with third parties since many companies involve only with registered companies.
- It can improve the company’s reputation.
Steps to Register a Company in Australia
The procedure to register a company in australia is quite testing. It involves choosing your business structure, understanding ABN, and more. However, if you dedicate some time to it, you can get things done swiftly.
Step #1. Select the Business Structure
You should begin with selecting a business structure defined by ASIC. This determines a variety of things, including licenses, control, and tax brackets.
Although it is crucial to select the structure, it does not have to be final since you can change it as your business grows. Here are some business structures you can choose from:
- Sole trader
Step #2. Apply for ABN
The ABN (Australian Business Number) is a unique 11-digit number given to the registered business. This number is used to identify your business to the banks and government.
It will also enable you to claim GST (Goods and Services Tax), energy credits, and tax returns. You will have to submit identity proof, business details, associate details, and company activities in this step.
Step #3. Register the Company Name
The next step is to register your business name to distinguish it from competitors. Below are some things you should consider before registering your company name:
- Make sure to check if the business name is available.
- Terms such as Royal, Bank, and Trust are restricted.
- The name must show its legal statuses such as Co., Ltd., ACN, and Pty.
Step #4. Get a Tax File Number
Once you register the name, you will have to get a Tax File Number (TFN) to register for the correct taxes. If you are a sole trader, you can use your TFN. On the other hand, you will have to acquire a separate TFN for company, trust, or partnership,
As a business entity, you can conduct various business activities across Australia. Additionally, your company will be eligible to use several privileges such as limited liability and corporate tax rates.
The registration process may require a lot of admin work. Further, it is crucial to review your application and make sure everything is perfect before submitting it. If it seems too challenging, you can always use a professional service to finish the work quickly and efficiently.