Australia is a great place to do business. One of the reasons is the high disposable incomes that households enjoy which makes it ideal for consumer goods industries.
But before you dive into kickstarting your business, it’s crucial to learn the initial costs. It lets you allocate a proper budget for the different requirements in launching your business successfully.
Let’s get you started on the first step which is registering your business. Know what to prepare, the costs, and the registration process.
4 Things to Prepare Before You Register a Company in Australia
Choose a Unique Company Name
Your business name will be your trademark. Make sure you put a lot of thinking into coming up with a name that speaks to what type of business you do and your goals. It should be marketable.
Think about the ethos, vision, and mission of your company. These can be the guiding beacons for naming your business.
Here are quick tips to help you derive a unique and brandable business name:
- Do a quick search online and see whether a business or entity already uses the name you want.
- Your business name must be easy to spell, pronounce, and memorable. The key is to make it simple.
- Make sure it’s brandable by reflecting the USP of your brand.
- Choose a name that’s web-friendly. Considering how digitally driven the market is, you’ll need to set up a website eventually. Try to search for the name you want if there’s a matching domain available, and register it before anyone else does.
Determine Your Company Structure
Next, you need to decide the structure that your business would have. You can choose from the following options that are allowed to operate in the country:
- Sole Trader: You’re a sole proprietor and you make all the decisions for the business.
- Company: This is a business’s legal structure that separates you from it and creates its own entity. In Australia, a “company” is registered with the Australian Securities and Investments Commission (ASIC).
- Partnerships: This business structure applies when you work with a partner who shares the company’s profits and losses.
- Trust: If your company is going to act as an agent or a fiduciary on behalf of other legal entities.
Understand Your Roles and Responsibilities
The roles and responsibilities you shoulder as the director would differ for each company structure.
It’s essential that you understand the full scope of your legal obligations towards and unto the company you’re registering according to the Corporations Act.
Learn About Australian Company Numbers (ACNs)
Each company in Australia has its own unique Australian Company Number (ACN). It’s a 9-digit number that serves as an identifier for your business. You can automatically get your ACN upon registering your business.
The Process and Cost of Registering a Company in Australia
Know the process for registering your company in Australia and understand the costs.
Check the Availability of Your Company Name
First, you must check whether the name you selected for your company is available. You don’t want to register under a name that’s already taken. You can perform an availability check here.
Learn about the Company Registration Fee
Registering a company in Australia usually costs between $443 to $538, depending on your business’s structure.
It’s better to check all the fees and charges applicable to you prescribed by the Australian Securities and Investments Commission. The list is a bit long; it’s best to hire expert help who knows the forms you need to fill out and their corresponding fees.
Note that the only payment method allowed is credit cards. You can use your VISA or MasterCard to swipe credit.
Duration for Registering a Company in Australia
Technology has made it possible to drastically reduce the registration time to just 15 minutes. All you need to do is go to the Business Registration Service website and register your company.
The form takes 15 minutes to fill out, and you should receive the confirmation within two working days.
Review Your Registration
Reviewing the company registration usually happens after one full year has passed from the registration date of your company.
ASIC sends you the annual review statement, and you would need to pay the annual company fee. You must also update the details of your business and give a solvency resolution to ASIC.
Register for Taxes
Businesses in Australia are also required to pay taxes:
- Luxury car tax
- Fuel tax credits
- Goods and service tax
- Pay as You Go tax
- Fringe Benefits tax
- Wine Equalisation tax
You need to look up which taxes your company is liable to pay; you can pay online. Learn about it here.
Don’t Let the Company Registration Cost Daunt You
The registration process and fee structure may be elaborate, but they don’t take away from the fact that Australia is an excellent place to do business. So, get the ball rolling and make your dream business a reality.
While you’re at it, it makes total sense to create an online presence for your business in this competitive online market. Build it with robust web hosting and grow it with powerful online marketing tools.