With the booming digital revolution, more people are stepping into the business world to enjoy the comforts of technology. Embarking on a new business venture is nothing less than a rollercoaster ride. It is exciting to be your boss, enjoying power over others. At the same time, it is quite frightening because you have a long ‘to-do’ list even before kicking off the venture.
Unsurprisingly, working for someone else alleviates responsibilities since you are only answerable for your work. Things are no longer the same when you are the owner of the business, as you will be holding the bag for everything. Moreover, every country has different laws and regulations to get companies running.
Before you call the shots, pull off research to understand the new place’s norms, especially if you are stepping into Australian territory. It offers excellent investment opportunities, letting your business climb the stairs of success quickly. Are you wondering how to step into the market? We have put together a list of steps for setting up your business in Australia.
STEP 1 – CHOOSE YOUR BUSINESS STRUCTURE
Will you be working alone, with partners, or shareholders? The company’s structure reflects the level of control you have, the amount of tax payable, and the regulatory obligations. Likewise, it also impacts the health and safety obligations and the level of personal liability. To set up a company in Australia, being by understanding the four standard business structures.
- Sole Trader: If you want no interferences in your business, opt for a sole proprietorship to become the business owner. You will be managing all legal issues, managing finances, hiring people, and ensuring a smooth flow of business operations.
- Partnership. Sometimes, people want someone to share the burden of responsibilities and risk. As a result, they join hands with partners to run a business.
- Company: It offers you to have a separate legal identity than from the company, meaning liabilities won’t be shared.
- Trust: It is an entity in possession of property, income, or any other asset.
You must decide the structure since after that you can register your company in Australia.
STEP 2 – REGISTER YOUR COMPANY
Legally, you can’t start a business until you have an Australian Business Number (ABN). It is an 11-digit number, specifically for your business. This number helps the government to track and identify firms to ensure compliance. Once you get your ABN, you will have to register your business name. Honestly, it is best to decide your business name before creating logos. Otherwise, you might have to change everything in case the name changes.
Make sure to get a patent to protect your business from copyright infringement. Moreover, the ABN will expose your business to other entities. For instance, it would let you order goods and services, send invoices, etc. It also opens doors for energy grants, leading to better and innovative business solutions. You will also be using ABN to claim general sales taxes and filing returns.
STEP 3 – REGISTER THE DOMAIN NAME
Do you know what a domain name is? It is an identification string that defines authority over the internet. You can only move to this step once you have chosen your business name. After all, you can only get a ‘.com.au.’ address once you have the ABN. You have to choose a domain that relates to your business to make it easier for potential clients to find your company.
At times, businesses have a perfect domain name that complements the business name, but you have to check before finalizing it. Go to instant domain search and type your name to see whether someone hasn’t taken it already. Once you find a domain name that is available for you, start looking for domain registrars, and see how much you have to pay to secure the domain name.
STEP 4 – ESTABLISH RULES
Next up, you must decide what rules will apply to govern the company. It doesn’t have to be anything unusual, but a couple of simple rules to establish discipline.
- All replaceable rules from the Corporations Act of Australia, meaning a company doesn’t need any written constitution.
- Keep up to date financial records and explain transactions.
- You must notify Australian securities and investment commission ASIC about any changes occurring in the company.
STEP 5 – IDENTIFY FUNDING SOURCES
Like every other business, cash flow is likely to be your primary concern. You might have an exceptional business plan, but would that be of any use if you don’t have the means to keep the lights on? Therefore, recognize your funding needs beforehand to see how much capital you have and how much more you will need.
Alongside this, it is imperative to take a dig at available resources to make the initial growth period last longer. There are a few government grants available in Australia, but they vary from state to state. You can qualify for a $20,000 fund in some states, while in others, you might have to opt for financing. Look for other funding options like small business loans, line of credit, and see whether the prevailing interest rates fit under your budget.
Indeed, setting a company requires planning, while establishing is a challenge in itself. Surprisingly, the legal procedures and requirements are relatively less in Australia, making it straightforward to open a company. Get an ABN, register your business, and you are good to go. If you worry about success, you have to understand market demographics and work your way through it.
To read more on topics like this, check out the Business category