Finally taking the plunge of starting your own business in Australia?
The idea of starting a business can be taxing. It requires a lot of thorough planning and diligent execution at the initial stage, such as on the type, structuring, funding, and marketing. Not to mention the country’s specific regulations and requirements that you need to adhere to.
All that needs to be done now. Because how smoothly your business will operate depends on the groundwork you put at the early stage.
So, how to start your own business?
This article will guide you on what needs to be done to smoothly set up your business in Australia.
How to Start a Business in Australia
Decide on your business structure
Your business structure mostly affects the legal aspect of your business such as how much tax you’ll be paying and the health and safety requirements you need to follow.
Are you a sole proprietorship, partnership, corporation, or trust company? Finalise your structure before you register your business to avoid licensing and permit issues in the future.
Register for an Australian Business Number (ABN)
Every business in Australia is required to apply for an ABN. It’s an 11-digit unique identification number assigned by the government to businesses in Australia.
After getting an ABN, you’ll be able to register your business name, start selling your products or services or apply for loans and grants in the country.
Note that registering for an ABN is free of cost. If you want, you can always register for it together with your business name. You can visit the official website register.business.gov.au to learn more.
Here’s a list of the information you need to provide when applying for an ABN:
- The legal name of your business
- Your business location
- Your business activity
- Your business associate details
- Tax file number (TFN) of you and your associates
- Tax agent registration number
- Professional advisor number
- Date by which you need your ABN
- Business address, email ID, and telephone number
- Authorized contacts
Register your business domain
Now that you already have your ABN and have successfully registered your business name, it’s time to get a domain name – your web address.
Think of a unique domain name that will set you apart from the competition.
Make sure that it’s still on-brand and customers will be able to easily recognize you when they hear about it.
That said, don’t confuse quirky with weird. Don’t go for over-complicated names. Your domain name has to be simple to be memorable to your customers.
Choose your .au domain extension.
The best way to win the hearts of your Aussie customers is to get a local domain. This will show your dedication to the local market.
The .au domain namespace has improved a lot for the past decade. It now offers a wide range of extensions, including but not limited to .com.au, .org.au, .net.au, .gov.au, and .edu.au.
And recently, auDA, the governing body of .au domain names, announced the launching of .au direct domains on 24 March 2022. This will allow entities and individuals to have a shorter and more memorable domain name.
READ: What You Need to Know About The New .au Direct Domain
Check the availability of your domain name.
With millions of websites out there, you need to check if your ideal domain is still available for registration. So, you may want to come up with more than one domain name for backups.
For example, if you plan to open a bakery in Australia and have made up your mind about naming your shop, say, The CakeBaby, you may find the domain thecakebaby.com.au already taken.
You can conduct a domain name search to find out if the name you want is up for grabs.
Set up the right IT infrastructure
You need the right technology to run any business, especially nowadays with everyone now going online. And if you plan to make it a success, you have to adopt a no-fail approach towards getting on board the right IT infrastructure.
That’s why it’s important that you invest in an efficient web hosting service that supports great web performance and provides robust security. You have to look at the average uptime, load time, bandwidth and storage, website backup, and SSL and make sure they fit your business needs.
READ: 9 Facts You Need to Consider Before Getting Web Hosting
Build your website
For some businesses, it’s not imaginable to make a start without having an efficiently operational website in place.
But not having a website is not something other businesses can afford either. We will not be exaggerating if we say that it’ll be hard for a business without a website to survive in today’s highly competitive market.
That’s why you need a dedicated website irrespective of what business you plan to operate. It doesn’t matter if you’re planning to run a hardware business or a bakery shop or a health spa that offers only offline services. Website Builders in Australia are available online to help you create a website.
READ: The Quickstart Guide to Building a Website
Get ready to pay taxes
In any country, taxes are an integral part of income generation. The same is true when you are setting up a business in Australia.
You should know that any laxity shown in reporting your income to the authorities can get you in serious trouble.
The taxes you need to pay depends on the type of business you’ll be running. Some of these taxes include the Tax on Profit, the Capital Gains Tax, the Goods and Services Tax, the Fringe Benefits Tax, and the Payroll Tax. Learn more about it here.
Look for government grants
Aside from levying taxes on business income, the Australian government also offers several perks and incentives to entrepreneurs opening new businesses in the county.
However, these government grants are only offered to those businesses that meet the eligibility criterion. To find out whether your business is eligible to get a government grant, visit the Grants & Programs finder page.
However, these perks only act as top-up assistance rather than a primary source of funding. For that, you will either have to use your own savings, funds from angel investors or private equity, or finance from banks.
Takeaway
Starting a business is no easy task. But with full determination and the right execution, you’ll be able to build what could soon become a million-dollar business.
While there are lots of big and small things one has to take care of when setting up a new business in Australia, in this guide we have listed some of those points that require your utmost attention.
