What Do You Need to Know Before You Register a New Company in Australia?

Starting a business in Australia is an exciting venture, but there are essential steps and legal requirements to consider before you register a new company. Understanding these factors will ensure compliance and set your business up for success.

Choose the Right Business Structure

Before proceeding with registration, decide on the most suitable business structure. The main options include:

• Sole trader: Simplest structure, with full personal liability.
• Partnership: Two or more people share control and profits.
• Company: A separate legal entity, offering limited liability but with additional regulatory requirements.
• Trust: A structure where assets are managed by a trustee for beneficiaries.

Each structure has different tax obligations, liability risks, and administrative responsibilities. A company structure is often preferred for growth and liability protection.

Select a Unique Business Name

Your company name must be unique and not already registered with the Australian Securities and Investments Commission (ASIC). It should also comply with naming regulations, avoiding restricted words or misleading terms.

Conduct a name availability search through ASIC and consider securing a matching domain name for your website.

Understand Director and Shareholder Requirements

At least one director must reside in Australia. Directors are responsible for ensuring compliance with legal and financial obligations. If your company has shareholders, determine their percentage of ownership and issue shares accordingly.

Directors should be aware of their duties under the Corporations Act 2001, including acting in good faith and preventing insolvent trading.

Obtain an Australian Business Number (ABN) and Tax File Number (TFN)

An Australian Business Number (ABN) is essential for tax and business transactions. Companies also require a Tax File Number (TFN) and may need to register for Goods and Services Tax (GST) if annual turnover exceeds AUD 75,000.

Registering for Pay As You Go (PAYG) withholding tax is necessary if hiring employees. These registrations can be completed through the Australian Business Register (ABR) and Australian Taxation Office (ATO).

Comply with Legal and Regulatory Requirements

Companies must adhere to Australian legal and financial regulations, including:

• Maintaining financial records.
• Submitting annual reports to ASIC.
• Meeting employment law requirements if hiring staff.
• Complying with industry-specific licences and permits.

A registered office address is also required, which must be accessible during business hours.

Why Hire Professionals?

Registering a company involves various legal and administrative steps that can be time-consuming and complex. Engaging professionals with expertise in business registration can help streamline the process, ensuring compliance with ASIC, tax regulations, and industry requirements. From securing an ABN and GST registration to setting up the right business structure, professional services can save you time, minimise errors, and provide valuable guidance to help your company start on the right path.

Taking these steps will ensure a smooth process when you register a new company in Australia, helping you build a strong foundation for your business’s success.