Any business start-up needs a thorough investigation of the market, and the same applies to the Australian market, as well. To establish business in Australia, an entrepreneur can either start a new Company or acquire an existing Company. Australia supports different Business structures, and each has its own regulatory and tax factors. Before starting a business, it is important to understand the laws and the legal requirements.
Australia favours a policy of Investment-friendly business atmosphere and has policies which favour starting up of new Businesses in the country. The significant point to mention on this is the introduction of SIV. SIV refers to Significant Investor Visa (Visa 188) which is an initiative by the Australian Government, introduced on 24th November 2012. Under a SIV, a 4 year provisional visa can be issued to any foreign national who is ready to invest into the country to the tune of 5 Million Australian Dollars. The investment should be routed through Government “approved” funds, State Government Bonds and Proprietary Operation Companies. The above SIV can be subsequently applied for extension or for permanent residency visa.
Let us understand the steps and processes involved in starting up a Business in Australia.
The steps to start a new business in Australia are:
- Determine the Business Structure.
- Apply for Australian Business Number (ABN).
- Register the name of the business and the Trademark.
- Select the Tax Structure.
- Register the Business and get required licenses.
- Obtain an Australian Business Account (ABA)
- Insure your Business
Determine the Business Structure:
The mode of operating the Business determines the structure of the Business. The types of Business Structures available are:
- Sole Trader – An individual owns and operates the business.
- Partnership – A group of individuals operate the business together.
- Trust – An entity is in charge of the property or income and uses it for others benefit.
- Company – A legal body that has share holders.
Apply for an Australian Business Number (ABN):
An ABN is a unique number provided to any business, which helps the external parties to identify the business. One can obtain ABN by applying through Australian Business Register website. Registration is free, and can be completed quickly.
Register the Name and the Trademark of the Business:
The Name of the Business is the name in which the Nusiness is operated. Check the website of the Australian Securities & Investments Commission (ASIC) to determine the availability of the name of the Business. If the name is available, it can be registered and secured.
A trade mark is the unique way in which a product/service is identified.
Select the Tax Structure:
The Tax structure depends up on the type of Business. Ensure to select the appropriate Tax Structure as it is very important for the Business. Some Taxes might be applicable to all Business structures, and some might be applicable to few depending on the nature and size of the Business.
Register the Business and get required Licenses:
It is essential to have proper Licenses and Registrations in place, to operate the business. Any non-compliance might even lead to closure of the Business.
Obtain an Australian Business Account (ABA):
The ABA helps you to start, expand, and manage the Business. It is easy to deal and communicate with Government and other entities using ABA across all states and territories.
Insure the Business:
Insuring the Business protects the Business and helps to minimize the risk. The type of Insurance depends upon the Business Structure, Business Size, and the Industry which the Business belongs to.
