How To Register a New Business in Australia

Starting a new business in Australia is exciting - and getting your registrations right from day one sets you up for success.

Whether you’re selling online from home or opening a shopfront, there are a few must-do steps: choosing a structure, getting your ABN, registering a name, sorting tax, and putting your core legal documents in place.

In this guide, we’ll walk through what “registering a business” actually involves, the step-by-step process in Australia, and the key legal requirements to keep you compliant and protected.

Important note: This guide provides general information. Tax obligations can be complex and vary by business. It’s a good idea to speak with your accountant or tax adviser about your specific circumstances.

What Does “Registering a Business” Mean in Australia?

“Registering a business” usually means completing a few legal and tax registrations so you can legally trade under your chosen name and get paid. The exact tasks depend on your structure.

• Sole trader: Apply for an Australian Business Number (ABN), register a business name if you’ll trade under a name other than your personal name, and set up your tax registrations.
• Partnership: Obtain an ABN for the partnership, register a business name (if needed), and set up tax accounts (like GST and PAYG withholding, if applicable).
• Company (Pty Ltd): Incorporate with the Australian Securities and Investments Commission (ASIC) to receive an Australian Company Number (ACN), then apply for the company’s ABN, register a business name if trading under a different name, and complete tax registrations.

Many new founders mix up a business name with a company. A registered business name is just a trading name - it doesn’t create a separate legal entity. A company is a separate legal entity with its own liabilities and responsibilities. If you’re unsure, it’s helpful to compare business name vs company name early.

Step-By-Step: How To Register a New Business

1) Lock In Your Business Plan

Before you register anything, jot down your model, target market, pricing, and how you’ll deliver your product or service. This helps you choose the right structure and identify licences or policies you’ll need.

Keep it simple to start - a one-page summary is fine. Revisit it as you learn more.

2) Choose Your Business Structure

Your structure affects your risk, tax and admin. The most common options are sole trader, partnership and company (Pty Ltd). There isn’t a single “right” answer - it depends on your goals, risk profile and growth plans. We unpack these options further below.

3) Pick and Check Your Name

Choose a name that’s available and distinctive. Check two things:

• Is the business or company name available (not already registered)?
• Is the brand available to protect (no confusingly similar registered trade marks)?

If you’ll trade under a name other than your personal name (sole trader/partnership) or different to your company’s exact legal name, you must register your business name. A business name doesn’t give you exclusive rights to the brand - that’s what trade marks are for. If brand protection matters (it usually does), plan to register your trade mark once your name is settled.

4) Get Your ABN And Core Tax Registrations

Apply for your ABN (Australian Business Number) so you can invoice and deal with government agencies. Consider these tax registrations:

• GST registration: Required once your current or projected GST turnover is $75,000 or more in a 12‑month period (you can also register voluntarily earlier). If you operate a taxi or ride‑sourcing service, GST registration is compulsory regardless of turnover.
• PAYG withholding: If you plan to hire employees or pay certain contractors.
• TFN: Sole traders use their individual TFN; companies need a separate company TFN.

If you’re still weighing up whether to trade under an ABN at all, it helps to consider the practical pros and cons of ABN-based trading (invoicing, tax, credibility) before you decide.

5) Register a Company With ASIC (If You Choose a Company)

If you choose a company structure, you’ll register your company with ASIC, receive an ACN, and set your internal rules. You must also apply for a Director ID for each director before they are appointed.

• Key decisions: Company name, registered office, business address, share structure, director(s) and shareholder(s).
• Internal rules: Use replaceable rules under the Corporations Act or adopt a tailored Company Constitution to clarify how the company will operate.
• Multiple founders: It’s wise to put a Shareholders Agreement in place to set expectations around roles, decision-making, equity, exits and dispute resolution.

To make setup smooth and compliant, many founders prefer a guided Company Set Up so key documents and registrations are handled together.

6) Set Up Business Banking And Records

Open a dedicated business bank account (mandatory for companies, best practice for all). Put bookkeeping systems in place for invoicing, payroll and GST/BAS tracking.

Keep strong records from day one. For tax, most businesses must keep taxation records for at least five years. Companies must also keep financial records for seven years under the Corporations Act.

7) Protect Your Brand And IP

Once your name is final (and ideally before a big launch), consider trade mark protection for your brand name and/or logo in Australia. Registration makes it easier to stop others using confusingly similar branding and adds value to your business.

Also consider copyright in your content, design registrations for product appearance, and confidentiality arrangements for your know‑how.

8) Put Core Contracts And Policies In Place

Before you start trading, prepare the legal documents you’ll rely on every day. At a minimum, that usually includes customer terms, supplier agreements, and privacy compliance (more on these below). Getting these right from the start can prevent disputes and protect your cash flow.

9) Prepare To Hire (If You’ll Have Staff)

If you plan to hire employees, make sure you’re set for Fair Work compliance. Each staff member should have a compliant Employment Contract, the correct award coverage and rates, and payroll and superannuation set up.

If you’re engaging contractors, use a tailored contractor agreement and understand how to manage worker classification risks.

Which Business Structure Should You Choose?

There’s no one-size-fits-all answer, but here’s a quick way to think about it:

• Sole trader (simple and low-cost): Suitable if you’re testing an idea with minimal risk and don’t need investors. You control the business, and you’re personally liable for debts.
• Partnership: Two or more people/entities run the business together. Partners share profits and are usually jointly liable for debts. A written partnership agreement is strongly recommended.
• Company (Pty Ltd): A separate legal entity that can offer limited liability to its shareholders. More setup and ongoing compliance, but often better for growth and risk management.

Many founders start as sole traders and later incorporate. Others set up a company from day one to separate personal and business risk, to hire early, or to bring on investors.

If you incorporate, think about governance as well as registration. Adopting a tailored Company Constitution and agreeing a clear Shareholders Agreement can prevent future disputes and keep decision‑making smooth.

What Laws And Ongoing Obligations Apply?

Licences And Local Approvals

Some industries require specific permits (e.g. food businesses, childcare, building and trades). Check state/territory and local council rules for your activities and location.

If you operate from a physical premises, confirm zoning, signage and fit‑out requirements before you sign a lease or start works. Without the right approvals, you may be forced to pause operations.

Australian Consumer Law (ACL)

If you sell goods or services, you must comply with the Australian Consumer Law on pricing, advertising, unfair contract terms, consumer guarantees and refunds. Clear customer terms and fair marketing practices reduce the risk of ACL complaints and chargebacks.

Privacy And Data

If you collect personal information (web forms, online orders, mailing lists, customer accounts), you need to consider your obligations under the Privacy Act 1988 (Cth). Most small businesses with annual turnover under $3 million are generally exempt, but important exceptions apply (for example, health service providers, businesses that trade in personal information, those handling TFN information, or contracted service providers to the Commonwealth). Even if the exemption applies, customers increasingly expect transparency and good data security.

Having a compliant Privacy Policy and sensible processes for handling data securely and transparently is best practice and often required when you meet an exception or cross the $3 million threshold.

Tax And Payroll

• GST: Register when you meet or expect to meet the $75,000 turnover threshold; taxi and ride‑sourcing businesses must register regardless of turnover.
• PAYG and Super: Withhold and remit PAYG for employees and pay the correct superannuation contributions on time.
• Record keeping: Keep accurate records; for tax, retain records for at least five years, and companies must keep financial records for seven years.

Because tax settings can be nuanced, it’s sensible to check your setup with your accountant early on.

ASIC And Company Compliance (If You Incorporate)

• Company details: Keep ASIC records up to date (directors, addresses, shareholdings) and pay annual review fees.
• Director duties: Directors must act in the company’s best interests, keep proper financial records and avoid insolvent trading.
• Signing authority: Make sure you understand who can bind the company and how to execute documents properly, including execution under section 127 of the Corporations Act (your customer and supplier contracts should reflect this).

What Legal Documents Do You Need Before You Trade?

The right legal documents help you set expectations, get paid on time and manage risk. Not every business needs everything on this list, but many will need several of these from day one:

• Customer Terms or Service Agreement: Sets out pricing, scope, payment terms, cancellations, warranties and liability. For online businesses, this may be Website Terms and Conditions on your site or app.
• Privacy Policy: Explains what personal data you collect and how you use and store it; a Privacy Policy is increasingly expected by customers and is required for many businesses under the Privacy Act.
• Supplier or Contractor Agreements: Define deliverables, timelines, pricing, IP ownership and confidentiality with your key suppliers and contractors.
• Employment Contract: If you’re hiring staff, each employee should have a compliant Employment Contract that aligns with awards, leave and termination rules.
• Non-Disclosure Agreement (NDA): Protects your confidential information when discussing partnerships or pilots.
• Company Constitution: If you incorporated, adopt a tailored Company Constitution for clearer operational rules than the default replaceable rules.
• Shareholders Agreement: If there’s more than one shareholder, a Shareholders Agreement covers ownership, decision‑making, vesting and exits - it’s critical for preventing founder disputes.

It’s normal to feel unsure about which contracts you need. Our lawyers can map your specific risks and prepare documents tailored to how you operate, so you’re protected without unnecessary complexity.

Key Takeaways

• Registering a business in Australia usually involves choosing a structure, getting an ABN, registering a name, setting up tax accounts and preparing core contracts.
• A company isn’t mandatory, but many founders prefer it for limited liability and growth; if incorporating, factor in Director IDs, ASIC reporting, and fit‑for‑purpose governance documents.
• Check the availability of your trading name and protect your brand early with trade marks; a business name alone doesn’t grant exclusive rights.
• Privacy obligations can apply even to small businesses in certain cases - a clear, compliant Privacy Policy and good data practices build trust.
• Stay compliant with licensing, Australian Consumer Law, tax and payroll obligations, and (for companies) ASIC requirements; keep records for the required periods (five years for tax, seven years for company financials).
• Strong foundational documents - customer terms, Website Terms and Conditions, supplier agreements and Employment Contracts - help you get paid and reduce disputes.

If you’d like a consultation on registering a new business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.