Know the Law: How to Start Up a New Business in Australia
Starting any new business in Australia is a decision that requires careful planning and implementation. First of all, you will need to determine the kind of business you plan to start, and then you can begin to structure accordingly. Will you be working from your own home, or working from an office? How will you organize a system for financial dealings and record-keeping? What are the tax and superannuation requirements, and will you be required to register the business? If so, what procedure will you follow? These are the types of questions you are probably asking, and the answers will depend on the nature of the business you plan to start.
Choosing a Business Structure:
Begin by selecting a business structure that complements your needs. For example, if your business is an extension of a hobby, you will need to factor in the income you are required to declare and the losses and deductions you can claim. Start by doing some research, find out what licences (if any) you may need. At this stage it’s helpful to consult with a business advisor or financial planner who can help you to design a strategy that works for you.
Registering Your Business:
The Australian Government has recently designed and updated a checklist that covers many business considerations. Additionally, a revised National Business Names Registration System serves to replace the former territory and state register. New business registrations names are managed by the Australian Securities and Investments Commission (ASIC); previously existing business names were transferred to the ASICs database. Should you plan to set up an independent business, protecting your intellectual property (IP) with an appropriate trademark registration may help to increase your profit.
Managing Your Finances:
Responsible financial management will greatly influence the success of your business. When you initiate your planning, based on the structure of your business, take into account how much funding will be required and how you will manage your finances. Many small business obligations can be registered simply by completing forms. Payments, invoices, and business records can be compiled into basic systems that match the requirements of your business.
Home-based businesses may also be affected by a broad range of government restrictions and requirements. Legal obligations for setting-up and operating a business from your home may be subject to specific requisites that include: planning, support, registrations, licences, taxation, and insurance, based on the type of business venture. Today, more small businesses operate from home than ever before. The internet has opened up tremendous potential for ecommerce. Many retirees and families are finding that they can work more satisfactorily within the comfort of their own home.
The Australian Government’s checklist helps to determine the specific requirements that apply to the type of enterprise you plan to initiate. Before opening for business, it is your responsibility to know the law. However, with so many excellent resources available, opening a new business in Australia can be an exciting and lucrative venture!
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