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Stepping into the world of consulting is an exciting move – whether you dream of sharing your expertise as a business consultant, data analyst, or security specialist, there’s a real opportunity to build a flexible, rewarding career in Australia. Consulting gives you the chance to be your own boss, choose your clients, and make an impact in your chosen field.
But while becoming a consultant can be highly rewarding, it involves much more than simply hanging out your shingle and waiting for the work to roll in. The legal steps required to correctly set up your consulting business can be confusing, especially if this is your first time launching a business. Compliance, contracts, registrations, and intellectual property protection need careful attention – overlooking them can result in unwanted stress or costly problems down the line.
If you’re considering starting a consulting business in Australia, setting up your consultancy business the right way, and understanding the laws that apply, you’re already on the right track. In this guide, we’ll walk you through the crucial steps and legal essentials to help you launch with confidence.
What Is a Consulting Business?
A consulting business is all about providing professional advice or specialist expertise to clients in exchange for a fee. Consultants work across a huge range of industries, from management, marketing, HR and IT through to finance, environmental, engineering and security consulting in Australia. You might work solo or build a team. Some consultants primarily offer strategic advice; others combine this with hands-on project delivery, training, or auditing services.
Common consulting models in Australia include:
- Independent consultants (sole traders or freelancers)
- Small boutique consultancies (often set up as companies)
- Specialist partnerships or firms (e.g. engineering consultants, security consultants, IT advisors)
No matter your field, the legal requirements remain largely the same – so let’s explore how to make your new consultancy legal and above board.
How Do I Become a Consultant in Australia?
The path to becoming a consultant in Australia is relatively open. There’s no single required qualification or license (unless you’re entering a regulated industry like tax, finance, or security). However, most successful consultants have several things in common:
- Specialist skills or substantial professional experience in their field
- A strong professional network and personal brand
- An understanding of how to set up a business (including the legal side)
- Clear client service offerings and a solid business plan
You’ll typically need to register your business, protect your intellectual property, and have proper contracts in place to work with clients.
How Do I Start a Consulting Business in Australia? Step-by-Step Guide
Starting your own consulting business in Australia involves a series of clear steps. Here’s a roadmap to help you get set up the right way.
1. Research and Business Planning
Before you launch, spend time researching your target market, competition, and pricing models. Prepare a business plan that covers:
- Your services and consulting specialty (e.g. management, marketing, or security consulting)
- Your target clients (are you focusing on small businesses, corporate, government, or another niche?)
- How you’ll market and deliver your services
- Your fee structure, cashflow, and projected expenses
Clarifying these points will guide all other business decisions – including legal setup.
2. Choose Your Business Structure
The next step is to decide how you’ll operate your consulting business. In Australia, this typically means selecting from:
- Sole Trader: The simplest and most common structure for independent consultants. You operate under your own legal identity (with an Australian Business Number or ABN), keep all profits, but are personally liable for debts and lawsuits.
- Partnership: If you’re working with one or more partners. You share profits, risks, and tax obligations, but partnerships don’t provide limited liability protection.
- Company: A separate legal entity registered with ASIC. Companies provide limited liability (protecting your personal assets), better tax flexibility, and may be more attractive to larger clients. Setting up a Pty Ltd company involves more admin but offers important legal protections.
Most consultants start as sole traders or companies. You can change your business structure as you grow.
3. Register Your Business and Get an ABN
Once you’ve settled on a structure:
- Register for an ABN (Australian Business Number) – essential for invoicing and tax.
- Register your business name with ASIC if you’ll operate under anything other than your own personal name.
- Apply for any relevant licences or permits (more on that below).
4. Set Up Your Consulting Operations
Set up your business administration – bank account, accounting system, invoicing, and insurances (such as professional indemnity).
Build your marketing presence: website, branding, social media. If you’re collecting client data or offering online services, you’ll also need the right website legal documents (see below).
5. Secure Key Legal Documents
Create up-to-date, tailored legal agreements for your clients and contractors. Off-the-shelf templates can leave you exposed if things go wrong or if you deal with new, bigger clients later. We cover the documents you’ll need in detail below.
6. Stay Compliant and Up to Date
Once your consulting business is up and running, ongoing compliance is essential. Stay across your tax obligations (register for GST if your turnover exceeds $75,000/year), keep good financial records, and update your legal agreements as your services evolve or regulations change.
Do I Need Any Permits or Licences to Start a Consulting Business?
Most consulting fields in Australia are not heavily regulated, and you don’t need a licence simply to call yourself a “consultant.” However, some consulting specialisations do have requirements:
- Security consulting: You may need a security provider licence if you’re advising on physical security or surveillance systems. Check your state or territory’s rules.
- Finance, legal, or immigration consulting: These fields require strict professional accreditations and licences – such as an Australian Financial Services Licence (AFSL) for financial advice or a practising certificate for lawyers.
- Building, engineering, or health consulting: Professional qualifications and registration may apply depending on your field.
If your business uses a registered trade mark, you might also want to register your trade mark to protect your brand.
What Legal Requirements Do I Need to Follow When Setting Up a Consulting Business?
Whichever kind of consulting you specialise in, there are some universal legal compliance obligations for Australian businesses.
Business Registration
- Register for an ABN.
- Register your business name or company with ASIC.
- Update your details if circumstances change.
See our guide on how to register a business in Australia for more information.
Consumer Law (Australian Consumer Law – ACL)
- You must not mislead or deceive clients, and advertising must be truthful.
- Clearly disclose fees, deliver on the agreed service, and follow acceptable refund practices.
The ACL applies to all businesses providing services to consumers, including consultants. Learn more about your ACL obligations.
Employment Law
- If you hire staff, comply with the Fair Work Act: issue proper employment contracts, pay minimum wages, offer leave entitlements, and maintain a safe workplace.
- If you use contractors, ensure you have a clear contractor agreement that distinguishes between contractors and employees – this is a common legal trap for consultancies.
See our resources on the difference between an employee and contractor and employment contract essentials.
Privacy and Data Protection
- If you collect, store or use personal information from clients, you must comply with the Privacy Act 1988 (Cth) and, in most cases, have a visible Privacy Policy on your website.
- Some consultancies collect sensitive data and need to meet stricter obligations – this is particularly true for health, security, or NDIS consulting work.
Intellectual Property (IP) Protection
- You own the IP in your methods or frameworks, but your contracts should spell out who owns IP created during client projects.
- Protect your consulting brand, logo, or unique methods by considering trade mark registration early.
Insurance
- At a minimum, most consultants obtain professional indemnity insurance to protect against claims of professional negligence. You may also need public liability insurance.
What Legal Documents Will I Need to Start a Consulting Business?
Getting the right legal documents in place will make a world of difference to your consulting business. Below are the core agreements most consultants need:
- Consulting Service Agreement: Sets out the scope of work, deliverables, payment terms, liability, copyright, confidentiality and – crucially – how disputes are handled. Each client engagement should have a signed agreement tailored to that project.
- Client Terms & Conditions: Governs how your services are delivered, payment terms and client obligations (often used for ongoing or lower-value work).
- Privacy Policy: Explains how you collect, handle, and protect client data. Required by law if you collect personal information, and best practice for all businesses with an online presence.
- Website Terms & Conditions: Protects your website, including your IP, disclaimers, and limits on use. Vital for consultancies with online booking or resources.
- Non-Disclosure Agreement (NDA): Protects confidential information before you share sensitive project details with clients, partners, or contractors.
- Contractor Agreement: If you bring in external specialists, ensures their obligations, payment terms, IP, and responsibilities are clear.
- Employment Agreement & Staff Handbook: If you hire employees, you’ll need compliant employment contracts and workplace policies to prevent disputes.
- Shareholders Agreement: For consultants setting up a company with business partners, this agreement outlines ownership, profit distribution, and decision-making rules.
Not every consultancy will need every document, but most will require several. Tailored legal documents are often essential to winning larger clients or contracts, so it’s wise to get professional help when drafting these.
You can explore more about each agreement – for example, a Consultancy Agreement, NDA, or employment agreements on the Sprintlaw site – or chat with our team about the right mix for your business.
What About Security Consulting or Other Specialisations?
If you’re planning to provide security consulting in Australia, you may face extra layers of regulation. Security consulting can involve designing security protocols, conducting site risk assessments, or recommending surveillance systems. Most states require security consultants to hold a security licence or accreditation, and extra confidentiality and privacy obligations typically apply.
Similar considerations exist for financial consultants (AFSL required), legal consultants (admission as a lawyer), or health consulting (compliance with health privacy laws). If you’re unsure about your requirements, a legal expert familiar with your industry can help you navigate these rules.
Key Takeaways
- Starting a consulting business in Australia is an exciting move, but requires careful legal setup and ongoing compliance.
- Choose the right structure (sole trader, partnership, or company) to suit your goals, risk level, and growth plans.
- Register your business, get your ABN, and ensure you have the right registrations, permits or licences for your consulting specialisation.
- Draft tailored legal documents: consulting service agreements, NDAs, privacy policy, and, if needed, employment contracts or shareholder agreements.
- Comply with key laws – Australian Consumer Law, Privacy Act, and, if you employ staff, the Fair Work Act – to avoid fines or disputes.
- IP protection, insurance, and regular legal health checks can safeguard your business as it grows.
- Early legal advice makes it easier to win clients, manage disputes, and focus on what you do best – serving your clients.
If you would like a consultation on starting a consulting business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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