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Business Registration and Licensing Fact Sheet
Business Registration and Licensing Fact Sheet
When you’re starting up a new business, there are a range of government requirements that you will need to meet in regard to registering your business or obtaining specific business licenses or permits.
Use this fact sheet as a guide to understanding which business licenses and registrations apply to you.
Registering your business
One of the first things you’ll need to do when starting a new business is to register your business name. The type of registration procedures that you need to undertake will largely be determined by your business structure. E.g. whether you’re a sole trader, a company, trust, partnership or other business entity.
Business Name Registration
A business name is a name or title under which an individual, or other legal entity, trades. E.g. Wilson’s Tiles.
Registering a business name simply lists your business in the public registry. It doesn’t grant you any proprietary or legal rights to that name - only a trade mark can offer legal protection of your name or brand.
Business name registration is governed by state laws which mean you need to register your business name in the state or territory in which you’re setting up your business. If you plan on setting up your business in more than one state or territory, then you’ll need to register your business name with each state registry.
The only instance in which you don’t need to register a business name is if you intend to conduct business under your own name. (e.g. your first name or initials and surname).
Company Registration
If you decide on a company structure for your new business, then you must register your company at a federal level with the Australian Securities and Investment Commission (ASIC). When you register your company name, you’ll be issued with an Australian Company Number (ACN), a unique identification number required for business transaction purposes. Registering a company name, gives you the advantage of having exclusive rights to that name in Australia, without having to register in each state.
If your company will be conducting business in a different name to your company name (e.g. AFWM Pty Ltd trading as Cosmetics Plus), then you need to register that business name with the relevant state or territory registry.
Trademark Registration
A trademark can be a logo, a specific word or phrase, a letter or number, a shape or aspect of packaging, a sound, smell, a picture or a combination of any of these.
A registered trade mark gives you the exclusive right to use, license or sell that trademark in Australia as a brand and to legally stop others from trading with it. Once you’ve registered a trademark for your business, it will be protected in all Australian states and territories for ten years.
Domain Name Registration
A domain name is the internet address and online identity for your business. E.g. www.smallbusinesshq.com.au
Your domain name is a very valuable aspect of your brand and an important marketing and business tool, particularly if you plan on doing business online. To purchase and register a domain name for your business, you must be a commercial entity and have either an ACN or ABN.
What to do:
- Determine your preferred business structure
Seek advice from your solicitor and accountant to determine the most appropriate and favourable business structure for your needs.
- Register your business name
Select a business name, search ASIC’s National Names Index to make sure your selected business name isn’t already in use then register your business name in each state and territory that you plan on setting up business operations.
- Register your company
If you decide that a company is the best business structure for your needs, search ASIC’s National Names Index to make sure your preferred company name is available, then register your company with ASIC or have your solicitor complete the company registration process on your behalf.
- Register your trademark
If you have a trademark that you would like to register, search IP Australia’s trademark database to make sure your proposed trademark is not already registered then complete the trademark registration application process.
- Register your domain name
Perform a search at ausregistry.com.au to make sure your preferred domain name is still available, then select and purchase a domain name for your online business.
Registering your business for taxation purposes
To comply with government taxation regulations, you will also need to register your new business or company for taxation purposes. There are a range of taxation registration procedures that you may be required to undertake depending on your business structure and other aspects of your business operations.
ABN
An ABN is a unique 11 digit identifying number that businesses use when dealing with other businesses. Registering for an ABN is not compulsory, however you must have an ABN to register for GST.
TFN
A Tax File Number (TFN) is a unique identifying number that is issued to individuals and organisations by the Tax Office. Partnerships, companies and trusts require their own TFN which can be obtained under the ABN application form.
GST
The Goods and Services Tax (GST) is a tax of 10 percent on the sale of most goods and services in Australia. Registering your business for GST is compulsory if you have an annual turnover of $75,000 or more. If your annual turnover is less than $75,000, then GST registration is optional.
Pay As You Go (PAYG) Tax
If you have employees, you’re required by law to withhold tax from payments you make to them. You may also need to withhold an amount from payments to other businesses if they don’t quote their ABN to you on an invoice or other document if required. Before you can commence withholding payments from employees, contractors or other businesses, you need to register for Pay As You Go (PAYG) as an employer with the tax office.
Fringe Benefits and Pay-Roll Tax
FBT is a tax payable by employers for benefits paid to employees in place of salary or wages. E.g. a company car, car-parking space, gym or other club membership. If you provide fringe benefits to your employees, the Tax Office recommends that you register for FBT.
Pay-roll tax is a state tax on the wages paid by employers based on the amount of wages you pay per month. You must pay pay-roll tax if your total Australian wages exceed the exemption threshold that applies in your state or territory. If your business or company is required to pay pay-roll tax, you will need to register for pay-roll tax in your state or territory.
What to do:
- Apply for an ABN
Apply for an ABN online at the Australian Business Registry.
- Apply for a TFN if applicable
Apply for a Tax File Number (TFN) for your company, trust or partnership online at the Australian Business Register.
- Talk to an accountant about your GST options
If your annual turnover is less than $75k, seek your accountant’s advice on whether you should register your business for GST.
- Register for GST if required
Register for GST by completing the new business account form from the Australian Taxation Office (ATO) or instruct your accountant to register on your behalf.
- Register for Pay As You Go (PAYG) Tax if required.
If you have employees, register for PAYG as an employer with the ATO by completing a new business account form. - Register for Fringe Benefits Tax (FBT) if required.
If you’re required to pay Fringe Benefits Tax, complete the Application for Registration for Fringe Benefits Tax available from the ATO. - Register for Pay-Roll Tax if required.
Check with the Revenue Office in your state or territory for the pay-roll tax rate and threshold that applies to you, then register for pay-roll tax if required.
Business Licenses and Permits
Before you launch any new business venture, it's important to find out about any licensing requirements that might apply to your business. The type of new business that you’re starting will play a large part in determining the licenses and permits that you may require.
Common business licenses and permits include:
- Liquor license
- Motor dealers license
- Building contractor’s license
- Real estate agents license
- Travel agents license
The federal, state and territory and local governments are responsible for administering and issuing the various licences, permits, registrations and certificates that apply to businesses.
What to do:
- Check the Business Licence Information Service in your state or territory.
Find out about the licences, permits and other registrations that might apply to your particular business. - Apply for any necessary business licenses and permits.
Follow the application procedures for any business licenses and permits that you require to operate your business in your state or territory.
State Business Licence Information Services Queensland New South Wales Australian Capital Territory Northern Territory Tasmania Victoria Western Australia Other Useful Links: Australian company and business names search and registry. Government organisation providing legal information and registration material for trademarks, patents, designs and intellectual property. Australian domain names search and registration. Registry and database for Australian Business Numbers(ABNs). Government information service for business including taxation registration information and resources. Taxation essentials for businesses including online registration and application forms. Independent guidance and information for small business operators including business taxation and registration information. |
Important - Read This: This information is intended to provide general information only which may not be applicable to your particular circumstances. You agree to access this information at your own risk and that First Point Media Pty Ltd is not liable to you for the content of the information or any reliance by you on this information.
