How to Start a Business in Australia: Complete Registration Guide 2026
Starting a business in Australia offers tremendous opportunities across one of the world's most stable economies. Whether you're launching a café in Melbourne, a tech startup in Sydney, or a trades business in Perth, this guide walks you through every step of the registration process.
Step 1: Choose Your Business Structure
Your structure affects taxes, liability, and compliance requirements. Choose carefully as changing later can be costly.
#### Sole Trader
Best For: Freelancers, consultants, and simple businesses operated by one person. Pros:- Simplest and cheapest to set up
- Complete control over decisions
- Minimal compliance requirements
- Easy to close if needed
Cons:- Unlimited personal liability
- All profits taxed at personal rates
- Harder to raise capital
- Limited succession options
Registration: Apply for an ABN online (free)#### Partnership
Best For: Two or more people starting a business together. Pros:- Shared capital and expertise
- Relatively simple to establish
- Tax losses can offset personal income
Cons:- Unlimited personal liability (unless limited partnership)
- Joint and several liability for partner actions
- Potential for disputes
- Partnership ends if a partner leaves
Registration: ABN for partnership + partnership agreement (strongly recommended)#### Company (Pty Ltd)
Best For: Growth-focused businesses, those needing liability protection, or raising investment. Pros:- Limited liability (personal assets protected)
- Flat 25% tax rate for base rate entities
- Easier to raise capital
- Perpetual existence
- Professional credibility
Cons:- Higher setup costs ($576+ ASIC fee)
- More compliance requirements
- Director duties and obligations
- Annual ASIC fees ($310+)
Registration: Register with ASIC (online or through an agent)#### Trust
Best For: Asset protection, estate planning, or income distribution flexibility. Pros:- Flexible income distribution
- Asset protection (in some structures)
- Tax planning opportunities
Cons:- Complex to establish and maintain
- Higher accounting costs
- Trust deed interpretation issues
Registration: Establish trust deed + register for ABNStep 2: Register Your Business Name
If trading under any name other than your personal name (for sole traders) or registered company name, you must register a business name.
Registration Process:1. Check name availability on ASIC Connect
2. Apply online through ASIC Connect
3. Pay registration fee ($42 for 1 year, $100 for 3 years)
4. Receive confirmation within minutes (for online applications)
Name Requirements:- Must not be identical or similar to existing names
- Cannot include restricted words without approval (bank, trust, etc.)
- No offensive or misleading names
- Consider trademark implications
Step 3: Apply for an ABN
An Australian Business Number (ABN) is your business's unique identifier for government and tax purposes.
How to Apply:1. Visit abr.gov.au
2. Complete the online application (10-15 minutes)
3. Receive your ABN immediately (most cases)
What You'll Need:- Tax File Number (TFN)
- Identity documents
- Business activity description
- Expected income (estimate)
When You Need an ABN:- Operating a business
- Registering for GST
- Claiming fuel tax credits
- Receiving PAYG payments
ABN is Free: Never pay for ABN registration—it's completely free through the official government website.Step 4: Register for GST
Mandatory If:- Annual turnover is $75,000 or more ($150,000 for non-profits)
- Providing taxi or rideshare services (regardless of turnover)
Optional If:- Turnover below thresholds but want to claim GST credits
GST Obligations:- Charge 10% GST on taxable sales
- Issue tax invoices for sales over $82.50
- Lodge Business Activity Statements (BAS)
- Claim GST credits on business purchases
Step 5: Business Licences and Permits
Required licences depend on your industry, location, and activities.
Common Requirements: Food Businesses: Food handler certificate, council registration, food safety supervisor Trades: Relevant trade licences (electrical, plumbing, building) Retail: Development approval for premises, liquor licence if applicable Home-Based: Check local council home business regulations Online: Consumer law compliance, privacy policy, terms of service Find Your Requirements:- Australian Business Licence and Information Service (ABLIS)
- State/territory business portals
- Local council websites
- Industry associations
Step 6: Set Up Business Banking
Separate business finances from personal:
What You Need to Open a Business Account:- ABN registration confirmation
- Personal identification
- Company documents (if applicable)
- Business name registration (if applicable)
Bank Selection Criteria:- Transaction fees and charges
- Integration with accounting software
- Online banking features
- Merchant facilities for card payments
- Business lending options
Major Banks for Business:- Commonwealth Bank
- Westpac
- NAB
- ANZ
- Online banks (Up, Judo, etc.)
Step 7: Employer Obligations
If hiring employees, you have significant legal obligations:
Before First Employee:1. Register for PAYG withholding with ATO
2. Set up payroll software (compliant with STP Phase 2)
3. Understand applicable Modern Award or Enterprise Agreement
4. Organise workers' compensation insurance (mandatory)
5. Prepare employment contracts
Ongoing Obligations:- Pay at least minimum wage (Award rates)
- Withhold PAYG tax and remit to ATO
- Pay superannuation (12% of ordinary time earnings)
- Provide payslips within one business day of payment
- Report through Single Touch Payroll
- Maintain employee records for 7 years
Workers' Compensation:Mandatory in all states and territories. Obtain through your state's WorkCover authority or approved insurers.
Step 8: Insurance
Protect your business with appropriate insurance:
Essential Coverage:- Public Liability: Covers injury or property damage to third parties
- Professional Indemnity: For advice-based businesses
- Product Liability: If selling physical products
- Workers' Compensation: Mandatory with employees
Additional Considerations:- Business interruption insurance
- Cyber liability
- Management liability
- Equipment and stock insurance
Step 9: Business Records and Accounting
Record Keeping Requirements:- Keep records for 5 years (ATO requirement)
- Records must explain all transactions
- Must be in English or easily converted
Recommended Setup:1. Cloud accounting software (Xero, MYOB, QuickBooks)
2. Receipt scanning app (Hubdoc, Dext)
3. Bank feed integration
4. Regular bookkeeping schedule
5. Registered BAS agent or accountant
Step 10: Understand Your Tax Obligations
Key Tax Dates:- BAS: Quarterly (28th of month following quarter) or monthly
- Income Tax: Individuals - 31 October; Companies - 28 February (or later with tax agent)
- Superannuation: Quarterly (28th of month following quarter)
- PAYG Summaries: Replaced by STP finalisation by 14 July
State-Specific Considerations
#### New South Wales
- WorkCover NSW for workers' compensation
- SafeWork NSW for workplace safety
- Service NSW for business support
#### Victoria
- WorkSafe Victoria for workers' compensation
- Business Victoria for support services
- Consumer Affairs Victoria for consumer law
#### Queensland
- WorkCover Queensland for workers' compensation
- Business Queensland one-stop-shop
- Office of Fair Trading for licensing
#### Western Australia
- WorkCover WA for workers' compensation
- Small Business Development Corporation
- Department of Mines, Industry Regulation and Safety
#### South Australia
- ReturnToWorkSA for workers' compensation
- Business SA for support
- Consumer and Business Services
Conclusion
Starting a business in Australia involves multiple registrations and compliance requirements, but the process is straightforward when approached systematically. Focus on getting the fundamentals right from the start—proper structure, correct registrations, and appropriate insurance—and you'll build a solid foundation for growth.
Your first step: Decide on your business structure and apply for your ABN today at abr.gov.au.