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So you have a great business idea that you think will revolutionise the industry and change the world and have decided to put a plan in motion to turn your hobby into a profitable business.

There is an undeniable exhilarating rush of excitement and fear when embarking on a new business venture. On the positive side, you will finally be your own boss pursuing what you have always been passionate about. While on the other, you have an endless list of things you need to take care of before you open your doors for business.

So far you have done all the donkey work of conducting your market research and validating your business idea. While you are bursting in the grandeur of enthusiasm, you are slapped with that scary and uncomfortable realisation you need to take care of the legal processes of registering a company.

A lot of determination, motivation and aptitude is required when setting up a company. One of the scariest and exhausting processes undertaken by entrepreneurs is legally registering a new company in Australia. The thought of the insurmountable amount of paperwork and the possibility of irreversible mistakes that could occur while registering a company can be overwhelming and a tad terrifying.

But where do you start? No need to pull your hair out in frustration. We have a compiled a to-do list on how to register a company in Australia

  1. Choose A Business Structure.

Several company registration processes need to be completed when you are ready to start your business. However, which registration process you will need to take will depend on the business structure you have chosen. There are four main business structures used in Australia namely;

  • Sole trader: this is an entrepreneur who has registered themselves as the sole owner of the business and is legally responsible for all aspects of the company. The sole trader is the most common form of business organisation in Australia as it is free to register and easy to manage.
  • Company: a company is a commercial entity, with a separate legal existence to its shareholders and also operates separately from them. As outlined in the Australian Securities and Investment Commission (ASIC), a company has specific responsibilities and obligations.
  • Partnership: a partnership consists of more than one individual or entities, a maximum of 20, who run a business collectively but not in the form of a company. Every partner is liable for all the financial obligations.
  • Trust: it is an entity that is in possession income, property or any other assets or carries out the business on behalf of a third party. A trust is not a separate legal entity.
  1. Choose A Name.

Choosing a name for a business is one of the most overlooked essential steps in the starting of a business process. An optimal name will help in distinguishing your business from your competitors.

When choosing the perfect name for your business, there are few things you will need to consider, such as not using a name that is identical to another business name or existing company. You can check the availability of your business name by using the ASIC name availability search.

  1. Know How Your Company Will Be Governed.

  You will need to decide as to how your company will function before completing the company registration. Below are three ways your company can be governed;

  • Replaceable rules; they are the primary set of rules for managing a company and are in the Corporations Act.
  • Constitution: a written constitution can be used if replaceable rules do not govern your company.
  • A combination of replaceable rules and a constitution.
  1. Register Your Company.
You can register a company in Australia in two ways;
  • Private Sector Provider: some PSP’s use software that is linked directly to the ASIC’s systems to register a company. Using a PSP has its perks as most providers offer additional services including data visualisation enabling you to see your company’s structure in a straightforward diagram.
  • Direct with ASIC: you can also lodge your paper to register a new company in Australia directly with the ASIC by completing the FORM 201 and posting it.
  1. Apply For An Australian Business Number (ABN) And Register Your Business Name.

  Without an ABN, you cannot legally start a business in Australia. It is an 11-digit number that acts as a government identifier for your business and it unique to your business.

After obtaining an ABN, you will be able to;
  • Complete a company name registration.
  • Categorise your business to other entities to order goods and services or issue invoices.
  • File a claim for taxes such as Goods and Services Tax (GST).
  • Be eligible for credits for energy grants for example.

  Before you register a company name and begin to create your website URL, logo or other designs, it is advisable to decide on a proper business name. Otherwise, in the event of your business name change, you will need to change everything.

It is also worth considering if you require a patent to protect yourself from copyright infringement if you do create your business logo.

What Happens Next?

After registering your company in Australia, the next important step is ensuring you, or your appointed Auditor maintains ASIC compliance. It will including keeping your business details up to date, showing your company name where you conduct your business including displaying the company’s ABN is visible in all published documents.

With a team of seasoned and qualified experts, Companies Now is your reliable hand when it comes to registering your new company in Australia. Contact us now!

  Related Tag: Company Incorporation | Register Company Name