Launching a business after moving to Australia involves more than having the necessary funds and a good idea. You must also go through paperwork processes to ensure your business is legally registered and recognised. When your business is officially recognised, it builds credibility and opens up access to financial services.
At Remitly, we understand that registering a business name and getting an Australian Business Number (ABN)—an 11-digit identifier issued by the Australian government for tax and legal purposes—can be confusing for newcomers to Australia. We’ve created this guide to help you through each step, whether you’re a sole trader, in a partnership, or setting up a company.
From choosing your business name to understanding the legal requirements, registering your Australian company, and getting an ABN, we’re here to make the process easier for you.
Choosing the right business name and structure for your Australian business
Selecting the right business name and structure is a crucial step in establishing your Australian business.
Follow the steps below:
Step 1: Define your business identity
Your first step is to clarify what your business represents:
- Your business purpose: What product or services does your business offer?
- Target audience: Who are your customers, and what appeals to them?
- Brand personality: Should your business name convey professionalism, innovation, reliability, or creativity?
A well-defined business identity will help you choose a name that resonates with your audience and accurately reflects your brand. With this clarity, you can now think of name ideas.
Step 2: Brainstorm name ideas
Once you have a clear business identity, start generating name ideas using these strategies:
- Use creativity tools: Online name generators such as Honcho and BrandCrowd, thesauruses, and AI-powered tools like GoDaddy can provide inspiration.
- Think industry-relevant terms: Incorporate words related to your industry to make your business easily recognisable.
- Experiment with word combinations: Mix words, abbreviations, or foreign-language terms that align with your brand’s message.
- Seek feedback: Share your ideas with friends, family, or potential customers to gauge their reactions.
Step 3: Ensure long-term suitability
Before finalising your choice, ensure your business name is practical for long-term use:
- Domain name availability: Conduct a search on platforms like auDA to secure a matching website domain (.com.au) for online visibility.
- Trademark registration: Use IP Australia’s Trade Mark Search tool to ensure the name isn’t already trademarked by another business.
- ASIC business name register: Confirm that your chosen name isn’t already registered with the Australian Securities and Investments Commission (ASIC).
If the name is unavailable, refine your ideas and repeat the verification process.
Choosing the right business structure
Before registering a business name, you have to decide on a legal structure that best suits your needs. The main business structures in Australia include:
- Sole trader: A simple structure where you own and operate the business independently.
- Partnership: Involves two or more people sharing ownership, profits, and liabilities.
- Company: A separate legal entity that provides limited liability protection to owners.
- Trust: A structure where a trustee manages assets for beneficiaries.
Once you’ve chosen an available name and the right structure, the next step is to obtain your ABN. You need an ABN or be in the application process for smooth business name registrations.
Obtaining your Australian Business Number (ABN)
An ABN is an 11-digit identifier that allows businesses to operate legally in Australia.
Here’s how to get your ABN:
- Check your eligibility
Before applying, confirm that your business meets the eligibility criteria. Generally, you qualify for an ABN if you’re carrying out activities with the intent of making a profit. Your ABN application may be rejected if your business is designed as a hobby.
- Prepare required information Ensure you have the following details ready for a smooth application process:
- Business activities: Provide a clear description of the goods and services you offer.
- Contact information: Include your business address, email, and phone number.
- Details of business associates: If you have partners or directors, include their information. Accurate preparation prevents delays and unnecessary follow-ups.
- Submit your application You can apply for an ABN online through the Australian Business Register (ABR) website. The application process involves:
- Logging into the ABR portal.
- Completing the required sections with your business details.
- Reviewing the application to ensure all information is correct.
- Submitting the form for processing.
The online application is free, and most applicants receive their ABN instantly upon approval.
- Receive your ABN
Once approved, your ABN is issued and recorded on the ABR. At this stage:
- Your business details become publicly accessible on the ABR website.
- You can legally use your ABN on invoices, tax documents, and business contracts.
If additional verification is required, the processing time may take longer, and you might need to provide further documentation.
Why an ABN matters for your business
Having an ABN offers several key advantages:
- Invoicing and payments: Without an ABN, clients may deduct tax at the highest rate (47%).
- Credibility: Demonstrates legitimacy, making attracting customers and securing contracts easier.
- Access to government grants: Many business funding opportunities in Australia require an ABN.
- Streamlined business operations: Enables Goods and Services Tax (GST) credit claims and simplifies dealings with suppliers.
Obtaining an ABN ensures your business operates legally and efficiently, setting a solid foundation for long-term success.
Common issues and solutions when applying for an ABN
- Applying for multiple ABNs
If you’re running a business in Sydney, Melbourne, Brisbane, Adelaide, Perth, or any other city in Australia, you only need one ABN for that business or entity.
Applying for multiple ABNs for the same business can cause a lot of problems and may even lead to rejection.
- Incomplete or incorrect information
Many applications are delayed or rejected because of missing or incorrect details, such as inaccurate business structure details, or personal information like name and date of birth.
To avoid this, verify all details before submitting the application. Ensure that your name and business structure match official records. Double-check documentation for accuracy before submission.
- Unclear business activity
The Australian Taxation Office (ATO) may reject your application if your business activity is unclear or appears to be an illegitimate business.
Clearly describe your business activities and how they generate income. Avoid vague descriptions and be specific about the goods or services you provide. Ensure your business is actively trading or has a plan to do so.
- Not meeting ABN eligibility criteria
Your ABN application may be denied if your business does not meet the eligibility criteria. The ABN requires businesses to operate with the intent of making a profit.
To increase your chances of approval, demonstrate clear business intent by having invoices, a business plan, or a website showing your trading activity. If rejected, review the ABR’s eligibility guidelines and reapply with additional supporting documents.
- ABN already registered under a similar name
If your business name or details closely resemble an existing registration, your application might be flagged or rejected.
Search the ABR and ASIC website and database before applying to ensure your business name is unique. Consider slight modifications to your business name to avoid conflicts.
- Application processing delays
Most ABN applications are processed instantly, but some may take longer due to additional reviews. To minimise delays, check your email regularly for any requests for further information from the ABR. If the application is delayed beyond 28 days, contact the ABR to check on your application status.
- ABN cancelled or deactivated unexpectedly
Some businesses find that their ABN has been cancelled due to inactivity or failure to meet tax obligations.
To prevent this, ensure you lodge your Business Activity Statements (BAS) regularly if not registered for GST. Report changes in business status, such as ceasing operations, to avoid automatic cancellation. If your ABN was cancelled in error, contact the ABR to request reinstatement with supporting documents.
After navigating the process and successfully getting your ABN, your next step is registering your business name and ensuring you meet all legal requirements for operations.
Business registration and legal compliance in Australia
Setting up a business in Australia requires a work visa and involves two key steps: registering your business name and ensuring compliance with legal requirements.
Understanding the distinction between these steps will help you navigate the process efficiently.
Registering your business name
You can register with business registration services such as the ASIC Connect. Here’s how:
- Create an ASIC Connect account: Sign up on the ASIC Connect platform using your email and a secure password.
- Log in and start registration: Navigate to the Licences and Registrations section and select business name.
- Provide your ABN: As discussed earlier, follow the steps to obtain your ABN and enter the numbers.
- Enter your business name: Check availability to ensure your desired name is unique and compliant with ASIC naming rules. If yes, enter it in the available box.
- Choose a registration period: Select either a one-year ($44 AUD) or three-year ($102 AUD) registration term, keeping in mind how the cost of living in Australia might impact your budget.
- Review and submit your application: Verify all details to avoid errors before completing your registration.
Processing and confirmation
- Most applications receive immediate approval upon payment. If additional review is required, processing may take longer.
- Once approved, ASIC issues a record of registration, which officially confirms your business name.
- Keep track of your registration’s expiry date and renew it on time to avoid penalties.
Meeting legal requirements for business operations
Beyond using a recognised business registration service, you have to comply with legal and tax regulations to operate lawfully in Australia.
Tax registrations
Depending on your business type and annual revenue, you may need to register for the following with the ATO:
- Goods and Services Tax (GST): Required if annual turnover exceeds $75,000 AUD.
- Pay As You Go (PAYG) withholding: Necessary if you employ staff and need to withhold taxes from wages.
- Tax File Number (TFN): Required for businesses structured as partnerships, companies, or trust.
Record-keeping and financial compliance
Maintaining accurate financial records is essential for tax compliance. Businesses have to:
- Track income and expenses.
- Prepare financial statements (profits and loss reports, balance sheets).
- Retain financial records for at least five years, according to the Australian tax law.
Employment and workplace compliance
If you hire employees, your business needs to adhere to the Fair Work Act, which sets:
- Minimum wage and employee rights.
- Workplace safety regulations.
- Superannuation and leave entitlements.
Failure to comply with employment laws can result in fines and legal actions.
Industry-specific licences and permits
Certain industries require special permits. For example:
- Food businesses: Have to obtain health and safety certifications.
- Construction businesses: Require trade licences and safety permits.
- Retail businesses: May need signage or operating permits depending on the location.
Check with the local and state governments to identify necessary permits for your industry.
Consumer protection and business regulation
All businesses need to comply with Australian Consumer Law (ACL), which governs:
- Fair advertising and marketing practices.
- Product warranties and refund policies.
- Consumer rights and dispute resolution.
Understanding ACL enables you to ensure compliance and build customer trust.
Managing and maintaining your business name
Proper management of your business name ensures compliance with Australian regulations.
Ongoing obligations for business name holders
Business owners need to keep their details up to date with ASIC via ASIC Connect. Display your business name at your premises and on official documents. Tax obligations, such as GST compliance and record-keeping, should also be met to avoid penalties.
Renewing or cancelling your business name
Business names require renewal every one or three years. ASIC will send a renewal notice before expiry, and fees are $44 AUD for one year or $102 AUD for three years.
Failure to renew may lead to cancellation, which can also impact your ability to maintain an Australian bank account under your business name.
If you no longer need your business name, you can cancel it via the ASIC Connect. Once cancelled, the name becomes available for others to register. If you’re closing your business entirely, you also need to cancel your ABN.
Staying compliant with these requirements ensures your business operates legally and without disruption.
Good luck with your business operations in Australia.
FAQs
Cost to register a business name and get an ABN
Registering a business name costs $42 AUD for one year or $98 AUD for three years, while applying for an ABN is free. Registering both ensures your business is legally recognised and can operate smoothly.
Order of registration: business name or ABN first?
You need to obtain an ABN before registering a business name because it is required during the business name application process. This ensures that your business name is correctly linked to your legal entity.
How to get an ABN for a small business
Apply for an ABN online through the Australian Business Register (ABR) by providing details about your business structure and activities. Most applications are processed instantly, but errors or missing information can delay approval.
ABN requirement for earnings under $75,000
An ABN is not required if your annual turnover is under $75,000 AUD, unless your business provides goods or services that require one. However, having an ABN can make invoicing and dealing with suppliers easier.