Starting a Business in Australia
Starting a business is exciting — but the paperwork can feel overwhelming. The good news is that Australia has one of the more straightforward business registration processes in the world. This guide walks you through every step, in plain English.
Step 1: Choose Your Business Structure
Before you register anything, you need to decide how your business will be structured. This affects your taxes, your personal liability, and how much admin you will deal with ongoing.
The four main structures in Australia are:
- Sole trader — the simplest structure. You and the business are legally the same entity. Easy to set up, low cost, but you are personally liable for any debts.
- Partnership — two or more people running a business together. Each partner shares profits and is personally liable for debts, including those created by the other partners.
- Company (Pty Ltd) — a separate legal entity from its owners. More complex and expensive to set up, but limits your personal liability. Best for businesses with significant assets or multiple shareholders.
- Trust — a structure where a trustee runs the business on behalf of beneficiaries. Often used for tax planning and asset protection. Requires an accountant to set up properly.
Most small businesses start as sole traders or partnerships and move to a company structure as they grow. Talk to an accountant if you are unsure — it is worth getting right from the start.
Step 2: Register for an ABN
An Australian Business Number (ABN) is an 11-digit number that identifies your business to the government and other businesses. You need one to invoice clients, register for GST, and open a business bank account.
Registering for an ABN is free and takes about 15 minutes online at the Australian Business Register (abr.gov.au). You will need your tax file number (TFN) and basic personal details.
You can start trading as soon as you have your ABN — there is no waiting period.
Step 3: Register Your Business Name
If you are trading under any name other than your own legal name, you need to register it as a business name with ASIC. Business name registration costs $44 for one year or $102 for three years.
Check that your preferred name is available at asic.gov.au before you get too attached to it. Also check that the domain name and social media handles are available at the same time.
Step 4: Register for GST (if applicable)
You must register for GST if your business turnover is $75,000 or more per year. If you are under this threshold, registration is optional — though some businesses choose to register anyway so they can claim GST credits on purchases.
GST registration is done through the ATO via your myGov account or through a registered tax agent.
Step 5: Set Up a Business Bank Account
Keeping your business and personal finances separate makes tax time much easier and gives you a clearer picture of how your business is performing. Most banks offer business accounts — compare fees before you commit.
Step 6: Get Your Licences and Permits
Depending on your industry and location, you may need specific licences or permits to operate. Trades, food businesses, childcare, and health services all have their own requirements.
The Australian Business Licence and Information Service (ablis.business.gov.au) is a free tool that tells you exactly which licences apply to your business based on your industry and location.
Step 7: Set Up Your Record Keeping
The ATO requires you to keep business records for five years. From day one, set up a simple system for tracking income and expenses. Whether you use accounting software like Xero or MYOB, or a simple spreadsheet, consistency matters more than complexity when you are just starting out.
Final Thoughts
Getting your business registered properly from the start protects you legally and makes everything else — tax, banking, hiring staff — much simpler down the track. If you are unsure about any step, a business accountant or advisor can guide you through the process for a modest fee that is usually well worth it.
Ready to get your business found online? Add your business to the NetSB directory and start connecting with local customers today.