Starting a Business in Australia

Dreaming of starting a business in Australia? You’re in the right place.

From incorporation to ongoing compliance, Sleek makes starting and running your business hassle-free, so you can focus on growth. Let’s walk through the steps you’ll need to take to get started.

Sole Trader vs. Company

Whether you’re leaning towards becoming a sole trader or setting up a company, it’s essential to choose the right structure for your goals.

Sole Trader

As a sole trader, you’re the boss! You make all the decisions, but you’ll also be personally liable for any debts or losses. It’s an easy setup and works well for many solo entrepreneurs. Great for simple, straightforward businesses with full control.

Company

If you’re looking to grow and possibly bring on investors down the line, a company structure might be your best bet. It provides limited liability, and you’ll be required to meet certain legal responsibilities and there’s a bit more to manage in terms of compliance.

Not sure which route to take? We got you.

Key Steps to Register a Sole Trader Business

Step 1: Register for an Australian Business Number (ABN)

An ABN is essential for invoicing clients and managing tax with the Australian Taxation Office (ATO). You can easily apply for one online through the Australian Business Register website. Have your TFN and a few details handy for a quick process.

Step 2: Register a Business Name

If you want to trade under a name other than your own, you’ll need to register it with ASIC. This is quick and affordable, and it protects your business name so others can’t use it.

Step 3: Get to Know Your Tax and Compliance Obligations

Sole traders report business income on their personal tax return using their TFN. Remember to keep good records and set aside money for superannuation if you’re self-employed—it’ll pay off down the road!

Step 4: Open a Business Bank Account and Consider Insurance

It’s wise to keep your business finances separate from your personal ones by opening a dedicated business bank account. Also, look into insurance options, like public liability, which can protect you from unexpected costs.

Key Steps to Register a Company in Australia

Step 1: Pick a Company Name and Check Availability

Choosing a name is an exciting step, but it’s important to make sure it’s unique. Use ASIC’s company name search tool to confirm availability, and think of a name that stands out and captures your brand.

Step 2: Decide on Your Company Type

In Australia, most small businesses choose a proprietary limited company (Pty Ltd) for limited liability and growth potential. It’s a flexible structure that can adapt as your business expands.

Step 3: Register with ASIC

Head to ASIC to register your company and get an Australian Company Number (ACN). You’ll need your company name, office address, and details about directors and shareholders. The fee is around $400 to $500.

Step 4: Register for Tax

Companies need a TFN and might need to register for GST if turnover is expected to exceed $75,000 a year. Other taxes like PAYG withholding may also apply depending on your business activities.

Step 5: Open a Company Bank Account and Stay Compliant

Once registered, open a company bank account and set up shareholder agreements if needed. Starting off on the right foot with compliance makes managing your business easier down the road.

Transparent pricing based on your needs

50% OFF ACCOUNTING

Essential

From

$399/year

+ ASIC fees

Essential + Accounting Starter

From

$2,199/yr

$1,299/year

+ ASIC fees

Select your package:

Standard Pty Ltd registration

100% accuracy guarantee

All your ASIC documents

Worry-Free compliance

All your tax registrations sorted (ABN, GST, PAYG, TFN)

Phone & Email support

All inclusive accounting package

All inclusive tax return & support

Xero subscription

Receipt management app

From $399/year

+ ASIC fees

Pro

From $2,199/year $1,299

+ ASIC fees

Essential

From $399/year

+ ASIC fees

Pro

From $2,199/year $1,299

+ ASIC fees

Don’t Forget your Ongoing Obligations

For Sole Traders

As a sole trader, you’ll report your business income on your personal tax return each year. Keep up with superannuation if you’re self-employed, and hold on to your financial records for at least five years.

For Companies

Companies have to meet ASIC requirements, including annual reporting. Directors need to ensure the company meets all legal obligations and acts in the best interest of the business.

Read our 2024 guide to Directors Duties for more on this.

Speak with our
Sydney-based team

Whether you’re a sole trader or a company, we’re here to help with ABN and company registration, compliance, and more. Let us take care of the admin so you can focus on growing your business. Talk with us today for friendly guidance from our team and a no obligation quote.