Starting a business is exciting. It has been your dream, and now you are taking that big daunting step to make it become a reality. But it is also overwhelming because there are several areas that you need to consider and action as part of the start-up process. It’s important to get these things right, in the beginning, to set you up for success.

Five key registration must-haves for your new business

1. Australian Business Number (ABN) Registration

An Australian Business Number (ABN) is a unique registration number for businesses. It is issued by the Australian Business Register (ABR), which is a branch of the Australian Taxation Office (ATO). It does not replace a tax file number.

An ABN can be issued to many different types of business entities. This includes sole traders, corporations, partnerships, unincorporated associations and body corporates. It can also be issued to international businesses that operate in Australia.

An ABN is an 11 digit number that identifies your business to the government and community. You’re entitled to an ABN if you’re:

Carrying on or starting an enterprise in Australia
Making supplies connected with Australia’s indirect tax zone
A corporations act company

You can use an ABN to:

Identify your business to others when ordering and invoicing
Avoid pay as you go (PAYG) tax on payments you get
Claim goods and services (GST) credits
Claim energy grants credits
Get an Australian domain name

2. Business Name Registration

A business name is a name under which a person or entity operates. You will need to register a business name if you carry on business within Australia and are not trading under your own name.

It’s important to note that a business name and a company are two different structures. A business name is not an entity in its own right. It is the holder of the business name (which can be an individual, a partnership, a company, an incorporated association or a trust) that is legally responsible for the business. In contrast, a company is a legal entity in its own right.

You do not need to register for a business name if any of the following exceptions apply:

If you are operating as an individual and your operating name is the same as your first name and surname
If you are in a partnership and your operating name is the same as all the partners’ names, or
If you are an already registered Australian company and your operating name is the same as your company’s name

You can check to see if a business name is available to register by using the check business name availability search or by commencing an application to register a business name in ASIC Connect.

The business registration fees from 1 July 2020, are:

$37 for one year
$87 for three years

Before you can apply for a business name, you need to have an ABN or an ABN application. Multiple business names can

As the business name holder, it’s important to note that registering a business name does not protect you against third party claims for trademark infringement. To ensure your proposed business name doesn’t infringe on an existing registered trademark, you should use IP Australia’s Australian Trade Mark Search to search for existing trademarks.

Trading names do not meet the requirements of a registered business name. Before 28 May 2012, the Australian Business Register (ABR) collected names used by entities to carry out their business activities. The ABR displays these names as trading names, but trading name records have not been updated since the national business name register commenced on 28 May 2012.

3. Tax File Number (TFN) Registration

A tax file number (TFN) is a unique number issued by the Australian Taxation Office (ATO) to individuals and organisations. Depending on the business structure,

If you’re going to operate your business as a sole trader, your individual TFN is used for both your business and personal dealings with the ATO.

If you’re going to operate your business through a partnership, company, trust or another type of organisation, it will need a separate TFN.

Registering for a TFN is an important step when starting your business. Once you have it you can then give it to:

investment bodies responsible for paying interest, dividends and unit trust distributions
government bodies, for example, the ATO, when applying for an Australian Business Number (ABN) or lodging income tax returns
employers (this applies to individuals only)

4. Goods and Services Tax (GST) Registration

Goods and services tax (GST) is a tax on most goods, services and other items sold or consumed in Australia. If your business is registered for GST, you have to collect this extra money (one-eleventh of the sale price) from your customers. You pay this to the Australian Taxation Office (ATO) when it’s due.

You must register for GST if:

Your business has a GST turnover of $75,000 or more
Your non-profit organisation has a GST turnover of $150,000 or more
You provide taxi or limousine travel (including ride-sourcing services like Uber, GoCatch, Didi or OLA) regardless of your GST turnover
you want to claim fuel tax credits for your business, regardless of your GST turnover

If you’re a non-resident there are special rules that may apply to you.

Otherwise, registration for GST is optional.

5. Pay As You Go (PAYG) Registration

As an employer, you have a role to play in helping your payees meet their end-of-year tax liabilities. You do this by collecting pay as you go (PAYG) withholding amounts from payments you make to:

Your employees
Other workers, such as contractors that you have voluntary agreements with
Businesses that don’t quote their Australian business number (ABN)

In each case, you must register for Pay As You Go Withholding (PAYGW) before you can withhold that amount. You must provide the withheld amounts to the ATO, report those amounts regularly on your activity statements, and then lodge a PAYG withholding annual report confirming your total withholding.

Your requirements may be different for the amounts you report and finalise through Single Touch Payroll. Find out more about Single Touch Payroll at the ATO website.

Role of ASIC Registered Agent

These registrations can be performed by an ASIC Registered Agent. ASIC Registered Agents act as intermediaries between officeholders of Australian companies and ASIC to help companies meet their lodgement obligations more efficiently.

Registered Agents handle a large volume of companies regularly they are more familiar with the requirements companies need to meet under the Corporations Act 2001 (the Act).

Total Eclipse Agency is an ASIC Registered Agent (43024). Book a discovery call to discuss how we can help with your compliance needs. We can help guide you through the process of ensuring you meet registration needs.

Kylea Martin

Kylea Martin is a Financial Strategist who boasts numbers among her many superpowers.

She can decode your business data and transform it into information you can readily understand.

A Certified Practising Accountant, Kylea leads the Financial Services team, bringing over 25 years of corporate experience to small and medium business owners.