Are you all set to start a business? When can you conclude that you are ready? Once you have decided on the business name, written an impressive and practical business plan, and arranged finances, you are ready to go. Now it’s high time for you to reflect on the legal obligations. Every country has set up different rules and regulations for business owners; similarly, Australia has some specific laws; therefore, it is important to look for the correct information about the legal sides of running a venture in this country. You can find it a bit difficult. This article has compiled some essential legal facts, including choosing a business structure and learning how to register a business.
In Australia, various types of business structures exist. Some of them are- sole traders, partnerships, and companies.
- Sole Trader – Sole trader registration does not provide the business with any separate legal entity. You will be liable for all business-related obligations.
- Partnership – When you are starting a business with a partner, you need to consider this type. Under this type, all partners can share profits according to your partnership contract.
- Company – This is perhaps the most common structure in Australia. There are many other regulatory requirements for a company. However, the company will remain an individual legal entity from its owner.
Before you start trading, you need to register for an Australian Business Number or ABN. This 11-digit number will be used to identify your business. The ABN registration process does not take more than 15 minutes, and it is free of charge. You can complete this process online. Without an ABN, you will not be allowed to create accounts with your suppliers or issue invoices for your offered products or services.
Business Name Registration
You may have picked a perfect name for your business, but you won’t use it officially until it gets registered with The Australian Securities and Investments Commissions. For business registration, you can spend $34 for one year, or you can pay $79 for three years.
Suppose you intend to register your business name as a trademark, which is costlier. You may need to spend $220 on trademarks. You can quickly gather more information about your trademarks and international property rights from a portal of the Australian government.
If your business earns less than $50,000 sales each year, you don’t need to pay a GST charge. However, if you aim to make more than $50,000 in a financial year, you will need to register your business for GST. You can apply for GST registration online.
License & Permits
Every Australian state has different requirements for licensing and permits. However, licensing and permits may differ from one industry to another industry. If you need to learn more about licenses, you can check out the government’s portal.
Many new entrepreneurs ignore this critical legal issue. You must ensure that your business insurance covers emergencies, including natural disasters, fire, or theft. Moreover, you should make sure that your policy includes legal obligations so that you can be covered when someone sues you. This policy must cover both public and product liability.
Whether it is how to register a business or pick up the right business insurance, you may need support and valuable advice before starting a business. However, as it is a vital decision, you should not rush in a hurry; grant yourself enough time to consider all the legal issues.