10 Checklists on How to Start a Business in Australia | 2024

Australia is a popular destination for many people to live, work, study, travel, and retire. But have you considered starting a business in Australia?

It might sound like a huge decision, but it is not something impossible for you. The recent business registration figures from the Australian Bureau of Statistics indicate that a total of 406,365 new businesses were established across the country in the previous fiscal year.

Starting a business is an exciting journey, but it can also bring stress, challenges, and feelings of being overwhelmed. With so much to think about, it's easy to forget important steps.

But fear not! In this article, we've put together tips for starting a business in Australia. As you move from concept to launch your business, use this list as a handy tool to ensure you cover all the necessary tasks.

How to Start a Business in Australia

So, where you should begin on how to start a business in Australia? Here is your 10-step guide and the tips for opening a business in Australia to help you along the way.

1. Applying for a Business Innovation and Investment Visa

The business innovation and investment visa enables you and your family to come to Australia for a period of up to 5 years. 

You can also have the opportunity to transition to a permanent visa if you fulfil specific requirements. 

This visa permits you to establish a business within various sectors, with some exceptions such as purchasing an existing franchise.

Here are some of the following steps required for this visa:

• Submitting an expression of interest in the visa
• Being nominated and invited to apply by a state or territory
• Collect the required documents. These include identification and business information, proof of English language proficiency, and a police certificate of good character.
• Submit your application and pay the fee
• Wait for the outcome of your application, and you will be notified after the decision has been made.

2. Create a Business Plan

Before opening a business in Australia, you can start by doing research on the product/service to offer. It helps you to know competitors and also niches in the business space which can be beneficial.

When it comes to learning how to start a business, systematically developing your plan is a critical step. First, think about your "why." This will help you understand your primary reasons for starting your business and what you want to accomplish.

Next, create plans that embody your brand's mission and offerings. Don’t forget to define your key business goals with specific timelines and milestones to keep you focused. 

Then, create an executive summary that summarizes all relevant information about your company's goals, objectives and products.

3. Financing details

This is where your business plan becomes critical. If you don't have enough money to begin running your business, you'll need to secure your funding. 

Regardless of the plan you choose, there are several factors to consider. For example, how is your business organized? If securing investment made you give up a portion of your business, it may alter the structure of your company

However, you will need a plan for alternative financing if you don’t want to give up any part of the business. Here are some financing options you can consider:

• Crowdfunding: method of fundraising where individuals contribute money to a business venture through dedicated platforms in exchange for incentives or equity.
• Business loans: it is similar to getting a loan for other purposes like buying a car or a property. However, it's crucial to seek advice from a financial professional before committing to a business loan, as terms, limits, and interest rates can vary significantly.
• Government grants: depending on your business plan, target audience, and location, you may qualify for government funding at the federal or state level.

4. Choose the structure of your business

Next, you'll need to decide how to organize your business. Each structure has its own unique tax and legal obligations. Choose the most appropriate structure based on your needs. 

There are several options available to Australian businesses:

• Sole trader: This structure is simple to set up and administer. Sole traders can hire employees, but the owner is solely liable for the business, including any debts or deficits.
• Company: A corporation is a separate legal entity capable of incurring debts, suing and being sued. The structure of a corporation is more complicated and involves different tax and legal responsibilities than a sole proprietorship.
• Partnership: Two or more individuals manage a business together without incorporation. They share the profits and losses of the business.
• Trust: A trust structure involves the hiring of a trustee, who may be an individual or a corporation, to manage the business on behalf of the trust members or beneficiaries. The trustee is responsible for the profits and losses of the trust.

5. Applying for an Australian Business Number (ABN)

When starting a business in Australia, you need to apply for The Australian Business Number (ABN), it is a unique eleven-digit number assigned to your business used to track your business activities in Australia. 

This differs from the Australian Company Number (ACN) which is only required for businesses registered as a company.
 

6. Obtain a business tax file number (TFN)

For partnerships, companies, or trusts, obtaining a Tax File Number (TFN) for your business is necessary. However, in the case of sole traders, they can utilize their personal TFN when submitting their tax returns. 

It's often possible to apply for your business TFN concurrently with your ABN, simplifying the process for you.

7. Register for GST

When your business has reached the GST threshold, currently set at $75,000 turnover, you will need to register for Goods and Services Tax (GST). 

You will be given 21 days to complete this registration by the government. In most cases, businesses can register for GST once they have obtained an ABN and it is advisable to do so if they expect their turnover to reach the GST entry within the first year of operation.

8. Register your business name with ASIC

When starting a business in Australia, you can register your company by completing Form 201 - Application for Registration as an Australian Company and submitting it to ASIC (Australian Securities and Investments Commission).

The form must be accompanied by the necessary fees, which can be paid via check or money order, to initiate the processing. You will receive an Australian Company Number (ACN) with the certificate of registration.

9. Register your business domain name

When you are serious about your business, even if your business doesn't primarily operate online, having a website ensures that your business appears in search results when potential customers look for your offerings.

While many website builders offer free domain names, these often lack uniqueness and a professional feel. For a more successful business venture, it's advisable to customise your website domain name.

10. Find your first customer

After all the process of officially starting a business in Australia, now it is the time to find your first customer. Join a business network and begin making connections. 

Set up a business page, including your registered business name website, and you’re ready to start earning some money. 

Conclusion

That is all about how to start a business in Australia. After you understand the steps for starting a business in Australia, it is important to notice every detail in each step, especially the required paperwork. When everything is set up, you can ensure a prepared starting a business journey. 

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