This article takes you through the journey of how to start your own business in Australia. Setting out on a new business venture is both thrilling and worrisome. On the one hand, you’ll finally have control over your fate and be seeking success in a field in which you have a sincere interest. On the other side, you now have a long list of things to do before you even begin to ensure that everything gets off to a smooth start.
While these duties are lessened when you work for another person, the company owner is responsible for all of these difficulties. There are distinct rules, laws, and procedures for starting a business in every nation. Therefore, even if you launched your firm in Australia, you must conduct extensive study to ensure that you it is run appropriately with the aim of profit maximization.
Starting a Business in Australia: Getting it Right
There are a couple of things to do for you to successfully launch your own business in Australia.
Determine your Company Structure
The business structure you select is crucial because it directly affects things like:
- The degree and span of control
- How much tax you’ll pay.
- Regulatory requirement.
- Workplace health and safety regulations.
- The extent of your personal liability.
There are 4 basic types of businesses, based on ownership in Australia.
- Sole Proprietorship: When you register a person (typically yourself) as the business’s only owner, you do so as a sole trader. This means that while you have the right to employ people to work for you, you are still in charge of all legal aspects of operating the firm.
- Company: This is a company that operates as a separate legal entity from its stock or shareholders.
- Partnership: A partnership is when multiple individuals or entities manage a business jointly without using the formal structure of a corporation.
- Trust: A trust is a legal entity that holds assets such as money, property, or other resources for the benefit of another party.
It is important to highlight that before registering your firm, you must choose its structure because different structures require different procedures. Additionally, it’s important to keep in mind that if your company expands and changes over time, you may decide to change the way it is structured.
Choose a Business Category
With a structure in place, you can more clearly determine the kind of company you’ll probably require. There are many different business types to pick from, and some of the most prevalent ones are as follows:
- A web-based business
- An enterprise
- Independent businessperson
You must choose the business category that best fits your sector because each one has a unique set of legal obligations and regulatory restrictions.
Get an Australian Business Number and Register Your Business
It is illegal to launch a business in Australia without an ABN, this 11-digit number serves as the company’s official government identification and is exclusive to your firm. Click here to get an ABN, after obtaining an ABN, you will be able to:
- Register your company name.
- Identify your company to other organizations.
- Make tax claims, like the Goods and Services Tax (GST).
- Use credit to pay for items like energy grants.
It is best to choose the name of your company prior to creating materials like your website URL, logo, or other designs. If your company name changes, you’ll need to update everything. If you do design a company logo, you should think about whether you need to patent it to prevent copyright infringement.
Secure a Domain Name
You can only finish this step after you’ve acquired your business name and ABN. The domain name you choose should have some connection to your company and be simple to find and pronounce for potential clients.
Even if you have the ideal domain to match your brilliant business name, you need still make sure that no one else has previously claimed it. Fortunately, there are several websites. Fortunately, there are several websites out there that can assist you with that; to give you a head start, here is one of them.
You can find connections to domain registrars and resellers on the .au Domain Administration Ltd (.auDA) website once you’ve found a domain name that isn’t already registered. It will help you obtain a general idea of the cost to reserve your domain name.
Identify Your Funding Source
If you’re like most new businesses, cash flow will be your top priority. If you don’t have the cash to keep the lights on while you’re getting your firm off the ground, then the best business plan in the world won’t help. Knowing what resources are available to make the early stages of growth much easier is crucial in this regard.
There are various choices that are particular to each Australian state or territory, even if there aren’t many government subsidies available to help you launch your firm. For instance, you may apply for at least $15,000 Small Business Development Fund if you’re opening a business in Adelaide.
Other grants are determined by:
- Bringing your concept to market
- sales and marketing
- Purchasing tools
- Import and Export
- Staff recruitment
Click here for a complete list of grant categories that can assist in funding your project.
Select Your Software Architecture
There are numerous important considerations you must make as you begin to establish your company. Making a wise pick for software that will ease your life as you scale is one of the most crucial decisions you can make.
There are a few tools that are worth considering for every business, even though your specific software selections will depend greatly on the type of business you are starting (a bank will require different tools than a bookstore).
Almost every firm should use a CRM to manage crucial customer data in a single location, an accounting or bookkeeping program to keep funds in order, and an analytics tool to gauge business expansion.
File the Appropriate Taxes
It is a truism that “Death and taxes are inevitable in life.” This is regrettably also true if you create a business in Australia; in order to prevent any potential legal repercussions, you must register for the appropriate taxes. The taxes you must file vary on the kind of business you decide to launch; some are required for all types while others are only for specific kinds.
Several instances include:
- GST (Goods and Services Tax) is required if your company has a turnover of at least $75,000 AUD.
- Pay As You Go (PAYG) withholding tax.: If you need to withhold money for tax purposes, such as when paying wages or salaries.
- If you’re fortunate enough to be able to provide your staff benefits like a company car, you’ll need to register for the Fringe Benefits Tax (FBT).
To learn more about the various tax types, click here.
As we round off, you’re virtually ready to launch your own business in Australia if you take into cognizance the aforementioned necessities. As you kick off, remember, finding ways to cut costs and creating a strong network of colleagues and business partners will make beginning a firm much simpler.
Establishing a business at one of Australia’s many coworking spaces is a terrific method to accomplish both. You’ll spend much less on office expenses and have more opportunities for networking.