Legal Essentials For Business In Australia
- Written by News Company
Are you thinking of taking the entrepreneur's route and starting your own business in Australia? Well, let us congratulate you! This trip is quite exciting; however, several factors are important to keep in mind to make your startup as successful as possible. You will have to register it! The best part is that you can register a company in Australia online!
Here we present, the essential steps to register your company in Australia, according to ASIC.
Step 1: Choose the structure of your business correctly.
You should investigate each option carefully as there are advantages and disadvantages to each one of them. Here we provide you with some idea about such business structures so that you understand the basics and register your business according to them, considering which one will give you more benefits. The main four structures are:
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Sole trader: Known in other countries as a merchant or natural person.
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Partnership: Association of people or entities doing business, but not as a company.
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Trust: An entity that owns assets or income for the benefit of others.
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Company: Entity legally constituted by shareholders.
Step 2: Apply for your ABN (Australian Business Number) and your Tax File Number. Following this step is free. According to the structures described above, not everyone needs an ABN. The Tax File Number is necessary for any invoice that you are going to generate since, through this, you file the tax return.
Step 3: Register the name of your business and your trademark. Your company name and brand have different purposes and require to be adequately protected. On the internet, you can find several options to register your company, here we leave some options and their respective rates:
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https://easycompanies.com.au
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www.corporateexpress.com.au
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www.shelco.com.au
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www.registeracompany.com.au
The trademark must be registered on the Intellectual Property Australia website: www.ipaustralia.gov.au. This registration depending on the category and what you want to include (images, slogans, sounds) starts from $120.
Step 4: Register the domain of your business website. It is best to start searching for a domain with a name that represents your business or brand, which is easy to remember, pronounce and write, and is short and unique.
Step 5: Find out about the taxes that apply to your business. Making sure you are registered for the correct taxes is an essential step in opening a business; The taxes you register depend on the type of business you are starting.
Step 6: Organize registrations and licenses for your business. Having the correct records, licenses and permits allow you to work without any fear of being closed for not complying with the requirements, or having any other type of legal concerns.
Step 7: Register the ABA (Australian Business Account) to manage your licenses and permits. The ABA is a national service offered by all states, territories or local administrations in Australia.
Step 8: Buy or lease a store or office for your business. Regardless of whether you sell products or offer a service, you will need a physical place to conduct your business. Of course, you can also do it from your home that would be the most economical option; however, you must keep in mind that certificates, requirements, and licenses will also be needed to apply for.
Step 9: Secure your business. It is essential for your business when you are starting to find the best option to ensure it; This includes: ensuring your company, your assets, your income, and your business risk.
Step 10: Make a market and competition study. Understanding your industry, how products and services move in it, and how your competitors are working. It will give you a much clear perspective on how to proceed when you start operating your business fully as well. Remember that your most reliable sources for this are always going to be internet research and fieldwork.
The four most popular banks within the country are the National Australian Bank, Commonwealth Bank, ANZ Bank, and Westpac. We recommend comparing each one to see which one offers the lowest bank rates, charges, and interest rates before starting.
MINIMUM REQUIREMENTS:
Citizenship Restrictions
If you want to create a company in Australia, then you must apply for a Visa, either for Innovation and Business Investment or a Business Talent visa. If you already have a business abroad and have an annual turnover of at least AU $ 3 million. You can request these visas through the website of the Department of Domestic Affairs, or use an agent to do the paperwork in your name to increase your chances of acceptance. Once it has been approved, you can enjoy the same benefits as Australian citizens when you start a business within the country, although you may have to pay additional taxes if you plan to take an income out of the country. Do your research and work with an accountant to be sure.
Minimum Capital
While there is no minimum capital requirement to create a company in Australia, in addition to about AU $ 200 to register your company with the ASIC, it is convenient to have the funds to hire staff and market your company from day one. According to Payscale, the average salary of a business development manager in Australia is around AUS $80,000 per year, but you can choose to hire an expert remotely, or even consider working with a Professional Employers Organization (PEO) to hire talent in your name without the initial cost of recruitment and human resources. Hiring a PEO can be beneficial and great help to your global expansion goal just like this PEO in UK that can address your business operation needs.
Bank Accounts
A commercial bank account is essential for accounting and tax purposes, although independent merchants may choose to perform banking operations from their personal accounts. To open an account, your company must be registered in Australia and have an ABN / ACN registration number, and you must visit a bank branch with proof of identification (such as passport, photo identification card, driver's license, etc.), a certificate of incorporation or business registration and a registered office address of ABN / ACN. It is not necessary to be a resident of Australia to open an account, or even be in Australia to open a bank account, although the company must be registered in the country.
In conclusion, Always remember that if you have any questions, it is best to consult with a professional, be it a lawyer, accountant or consultant. Even though it will have a price, but you should see this as an investment and not as an expense. Failure to comply with the law, whether due to ignorance or negligence, will result in fines that will surely be much more expensive than consulting with these professionals. You already know that success is a mixture of good ideas, intelligent work, perseverance and a lot of passion. In the end, patience and good ethics are the key features to develop a successful company.