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In a single year, billions of items get delivered across Australia. The demand for delivery services has grown as consumers want more items delivered at a faster rate, largely thanks to the rise of online shopping.
So, if you have been thinking of starting your own delivery company then you might be on to a stable and profitable business venture. However, if your delivery company is a serious business venture then it’s necessary to properly consider the legal aspects of starting your own delivery company. That way, your company can be secured and protected as it carries out its services.
Keep reading to learn more.
What’s The Difference Between A Delivery Company And A Courier Company?
Couriers are a specific type of delivery service that typically operate on more specific routes with specialised services such as same-day or next-day delivery. If you’re interested in starting a courier company rather than a general delivery company, then we’ve written more about it in our article, How To Start A Courier Company.
A delivery company is a broader term referring to a wide range of delivery services. Delivery companies often operate on a larger scale, covering national and international routes and may use multiple modes of transportation. They also tend to offer various delivery options such as standard to expedited services.
Do I Need A Business Plan To Start A Delivery Company?
A business plan isn’t a strict legal requirement or anything. However, it’s always a wise idea to create a business plan rather than just blindly launching your delivery company.
Starting a delivery company requires a lot of research and planning. You’re required to make decisions about the kind of services your company will offer, how these services will be administered, potential competition, finances, legalities — the list is pretty long. Being well prepared and having a well thought out business plan will help keep you on track when starting your delivery company.
How Do I Start A Delivery Company In Australia?
To start your delivery company, you will need to register it with the Australian Securities and Investments Commission (ASIC). A company registration application with ASIC can be completed online however, it’s important to start the application prepared with the right details. A company registration application will ask for information regarding your company shareholders, directors, governance and legal structure.
Needless to say, these aren’t simple questions to answer – providing an answer to these questions requires a lot of forethought and in most cases, expert guidance. The details you provide during the registration of your company will play a significant role in your company’s future, so it’s important to make sure you’re making the right choices for your company. As such, it’s best to have a legal expert’s guidance when registering your delivery company.
How Do I Start A Last Mile Delivery Company?
A last mile delivery company specialises in deliveries on the ‘last leg’ of their journey. A last mile delivery company doesn’t deliver the package from start to finish. Instead, they pick up the package when it’s nearing its destination to complete the rest of the delivery, known as a ‘last mile delivery’.
The process for starting a last mile delivery company is the same as starting any kind of delivery company in Australia. You will need to register the company with ASIC by filling out an application form and providing the necessary details.
Do I Need Any Legal Documents To Start A Delivery Company?
When you start a delivery company, it’s important to protect your company and manage the risks that naturally come with being in business. The best way to do this is through strong, expertly drafted legal agreements. We’ve listed a few legal agreements that are likely to help your delivery company below.
Service Agreement: When offering a delivery service, it’s important to manage expectations by being clear on matters such as scope of work, payment, liabilities and termination. A service agreement is a necessary legal document in ensuring there’s a clear understanding between you and your clients.
Website Terms and Conditions: If your delivery company is going to have its own website (as most businesses do nowadays), it’s important to secure the controls and ownership of your website through website terms and conditions. This legal document is essentially an agreement between your delivery company and its users on the terms for using your website. It helps you establish necessary boundaries and limit your liabilities.
Privacy Policy: A privacy policy is legally required if your delivery company’s website is going to be collecting any type of information from its users. Privacy policies need to be displayed on the website letting users know exactly what’s being done with their information.
Non-Disclosure Agreement: it’s never a good idea to rely on promises alone. A non-disclosure agreement (NDA) is utilised when you need to keep business matters private helping legally protect the information you want to keep confidential.
Employment Agreements: It’s always exciting when your team gets bigger. However, hiring staff comes with its fair share of responsibilities. Employees have both rights and responsibilities – as an employer it is up to you to properly communicate what they are to ensure both parties have the same understanding. The same concept applies for contractors, except you’ll be needing a Contractor Agreement.
Do I Need To Follow Any Laws When Starting A Delivery Company?
Yes, there’s a number of regulations you will need to be aware of when starting a delivery company. Knowing what these laws are and abiding by them is necessary as failing to comply can lead to fines, investigations and even legal penalties.
From any necessary business registrations to local council laws, you’ll need to be on top of it all when it comes to your delivery company. It can be hard to know every single law that impacts your company, so it’s always a wise idea to get the advice of a legal expert. They can point you in the right direction so your delivery company can always be legally compliant. A few different types of regulations you will need to lookout for include:
- Employment Law: Ensure compliance with employment standards, employee rights, and workplace safety regulations
- Australian Consumer Law (ACL): Adhere to fair trading practices, consumer rights, and product safety standards
- Data and Privacy Law: Protect customer data and comply with privacy regulations regarding data collection and usage
- Intellectual Property Law: Safeguard your company’s trademarks, patents, and copyrights
- Environmental Regulations: Follow guidelines for reducing your business’s environmental impact, particularly if you operate a fleet of vehicles
- Industry-Specific Regulations: Abide by any additional regulations specific to the delivery industry or the types of goods you transport
Next Steps
When you start a delivery company, it’s important to secure your company’s future and safeguard it by properly accounting for the legal factors. To summarise what we’ve discussed:
- The demand for delivery services has grown due to the rise of online shopping, making it a potentially stable and profitable business venture
- Couriers provide specialised services like same-day or next-day delivery, while delivery companies offer a broader range of services, including national and international routes
- Having a business plan is essential for making informed decisions about services, competition, finances, and legalities
- Register your delivery company with ASIC, ensuring you provide accurate details about shareholders, directors, governance, and legal structure
- Last mile delivery companies focus on the final part of the delivery journey, requiring the same registration process as other delivery companies
- Legal documents such as service agreements, website terms and conditions, privacy policies, NDAs, and employment agreements are crucial for protecting your business
- Compliance with employment law, Australian Consumer Law, data and privacy law, intellectual property law, environmental regulations, and industry-specific regulations is necessary to avoid legal penalties
If you would like a consultation on starting a delivery company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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