Every State in Australia has its own laws in respects to starting a business but there are a few things that you will need to consider.
Choosing a business structure
There are a number of different types of business you can work under. The following is a brief summary of your options:
Sole trader: a type of set-up whereby the business has no separate legal existence from its owner. You can use a business name or your own name and as a sole trader you are responsible for the liabilities of your business.
Partnership: a partnership involves two or more people starting a business. All partners legally share profits, risks and loses according to the partnership contract (which is established at the onset of the business).
Company (Pty Ltd): a proprietary limited company is the most common type of company used by small business. Unlike partnerships and sole traders, it has more regulatory requirements and is a legal entity separate from its shareholders/owners.
Trust: a trust is a business structure whereby the trustee holds property and earns and distributes income on behalf of the beneficiaries. One of the most common types of trusts is a Discretionary Trust. Trusts are complex and can have various structures. Each type has its own set of legal and financial obligations.
In order to choose the right business structure, it’s best to seek legal and professional advice.
The regulatory requirements of starting a business
Company Registration
All companies need to register a company name and Australian Company Number through the Australian Securities and Investments Commission (ASIC).
According to ASIC, when a company is registered under the Corporations Act 2001, it is automatically registered as an Australian company. This means that it can carry out business throughout Australia without needing to register in individual State and Territory jurisdictions.
Business Name Registration
You are required to register your business name with the appropriate State/Territory authority. On the other hand, this is not necessary if the business is conducted under your name or your business partner(s); that is, first name and surname, or initials and surname.
Registering your business name as a trade mark
At the start of your business, you might want to consider registering your business name as a trade mark to give you the right to use your business name as a means to distinguish your product/service from that of other businesses.
GST, ABNs and TFNs
If you expect to have annual sales over $75,000, you have to register for Goods and Services Tax (GST). If you register for GST, you will need to apply for an Australian Business Number (ABN).
Sole traders can use their own personal Tax File Numbers (TFNs) but partnerships and companies require to apply for their own.
State Government licences
All states and territories are responsible for different business licences, permits, registrations and certificates. Check with the appropriate state government body.
Permits/requirements From Councils
Contact your local council to find out about zoning, health regulations and whether you require to lodge a Development Application or Building Application before your business can start.
Registering A Domain Name
Whether or not you will be establishing a website for your business in the early days, it is and idea to consider registering your preferred website name early on if you want to have an Internet presence at any stage.
Insurance – Business Protection
It is important that you make sure you have the right insurance cover in place.
Fire/other events: This is a one of the most important insurance covers for any business operating from a premise. Depending on the insurance company, you will generally be covered for loss/damage from fire, storms, malicious damage or vandalism and accidental damage. Beware though that cover for your business for damages to glass windows, signs and counters at your premises as they are often not included under fire/accident insurance.
Legal liability: this type of insurance covers your business if you are sued for causing personal injury to another person (other than employees) or damage to property owned or controlled by someone else (public liability) or in connection with a product sold or supplied by your business (products liability).
Business interruption: if there is damage to your property and there is a reduction in your business income as a result this will cover you
Business vehicles: cover your business vehicles against accident, theft or attempted theft and fire.
Personal: look at purchasing life insurance and income protection insurance too if you’re going to be self-employed.
For more a more comprehensive list of business requirement visit
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