Updated on June 17, 2025 by Mike
Starting a business in Australia is relatively straightforward. The process can be done online, is relatively cheap, and well-documented. You can register your business online, open a business bank account, and begin trading within just a few days. That said, there are a few things you need to understand before you begin.
This guide explains how to register a business in Australia, what kind of business structure to choose, and what to expect during the process.
Before you start
Starting a business in Australia is easiest when you already live here. If you do not have the right visa, you might not be allowed to run a business. Most permanent residents and Australian citizens can freely start a business. If you are on a temporary visa, check the conditions of your visa first.
If you are still overseas and want to run a business in Australia, you need to plan for that. You might need a business or investment visa. These are more complex and often require a significant capital investment or a detailed business plan.
Choose your business structure
The first thing to decide is what kind of business you want to register. In Australia, the main types of business structures are:
1. Sole trader
You run the business on your own and you are personally responsible for its debts. This is the simplest structure.
2. Partnership
You run the business with one or more people. Each partner shares responsibility for any debts and obligations.
3. Company
You create a separate legal entity. This limits your personal liability but adds more complexity and paperwork.
4. Trust
You set up a trust to operate the business for the benefit of others. This is a more complex structure often used for tax or asset protection reasons.
Most people start as sole traders or register a company. You can change the structure later as the business grows.
Register your business
Once you know your structure, you need to register it. This part is relatively easy and can be done online.
1. Get an Australian Business Number (ABN)
Every business needs an ABN. It is a unique 11-digit number that identifies your business to the government and other businesses. You can apply for an ABN for free at the Australian Business Register.
If you register as a company, you will also need an Australian Company Number (ACN) from ASIC.
2. Register a business name (optional)
If you want to trade under a name that is not your personal name or company name, you must register a business name. This can be done through the ASIC website. It costs around $40 to $100, depending on the registration period.
Make sure the name is available before registering. You can search for names on the ABN Lookup or ASIC’s business name register.
3. Register for taxes
If your business earns over $75,000 per year, you must register for GST (Goods and Services Tax). You may also need to register for PAYG withholding if you hire employees, and for other taxes depending on your industry.
You can register for these when you apply for your ABN.
Open a business bank account
If you are a sole trader, you are not legally required to open a separate bank account, but it is strongly recommended. For companies and partnerships, a separate account is mandatory.
Opening a business account is easy once you have your ABN and personal identification. Most Australian banks offer business banking services. Compare fees and features before choosing one that suits your needs.
Understand your obligations
Running a business in Australia comes with legal and financial responsibilities. These include:
- Keeping records: You must keep accurate financial records for at least five years.
- Lodging tax returns: You will need to lodge a business tax return each year. If you’re registered for GST, you’ll also submit Business Activity Statements (BAS).
- Paying superannuation: If you hire employees, you must pay super contributions on their behalf.
- Workplace laws: Make sure you follow Fair Work Australia’s rules on minimum pay, leave, and conditions.
Some businesses may also need licenses or permits. You can check what you need at business.gov.au.
Get help if you need it
You do not have to figure everything out on your own. There are plenty of free resources and government services to support new businesses.
- Business.gov.au: Government portal with tools, checklists, and guidance.
- ATO Small Business Hub: Information on tax, GST, and superannuation.
- Fair Work Ombudsman: Help with employee rights and obligations.
- Business advisors and accountants: Many offer a free initial consultation. Consider getting professional advice before you register.