The start-up rate in Australia by global standards is 5.8%, and between 2014-2022, approximately 365.5 thousand businesses opened up in the country.
The Australian environment is evaluated positively for start-ups due to its internal market dynamics, legal infrastructure, and several factors.
It can be both exciting and daunting if you are trying to build a business. On one end, you are in complete control, and on the other, you must make many decisions to succeed. You would have to sort everything out from marketing to operations, HRM to finances!
If you’re looking forwards to building a business in Australia and with due attention to the legal requisites, here are a few things to keep in mind!
Start with finding your niche and identity
This is perhaps the first and most important element in your business plans. The whole foundation of your trade depends on the niche you choose, as it will define your brand’s identity.
Simply put, your niche is the specialized target area of a market that you want your services and products to be catered around.
Do you want your niche to be fashion, IT, Education, or Finance? Your plans, business strategies, relevant market surveys,s, and goals all depend on this.
Decide which structure is meant for your business
It is a very important decision that you need to undertake when it comes to building a brand-new business.
To be recognized as a legit business, you must fit your trade into a structure since many factors depend on it, like the following.
- The amount of tax you would have to pay
- The level of control you’ll have over the business
- The health and safety requirements of your workplace
- The regulations your business would have to follow and many more.
There are primarily four structures that you can fit your business into in Australia.
You can register yourself as a sole trader. This implies that you’re in complete control of the operations, hiring, and firing; but also responsible for all the legal liabilities.
As a company, there will be separate legal existence from the different shareholders.
In the case of a partnership, you will be running the business with one or more people; but it’s different from a company.
Finally, a trust is one where you are entitled to own property, assets, and income for a third-party benefit.
- Apply for an Australian Business Number (ABN) and a Trade Certificate
You cannot legally own a business in Australia without your 11-digit unique Australian Business Number (ABN).
This is your legal recognition as a business in the country. After successfully receiving the number, you can register your business name and identify your role in relation to other services.
It also helps to levy taxes such as Goods and Service Tax (GST) and get a logo and brand name without having to worry about copyright infringement.
The next most important thing is to get yourself a trade certificate in Australia. This is a sign of your business’s professionalism, competency, and the level to which you stick to the safety regulations in terms of your operations.
It is a legal requirement to ensure your customers of the authenticity of your business and set yourself apart from illegal and unlicensed businesses.
- Take into account all the relevant legal undertakings
To ensure that your business is free of all legal liabilities, be mindful of the legal actions that you need to undertake. Seek out a Legal Advisor to help you in this regard.
While putting together your website, make sure that you have all the documents needed to prove that you comply with all the requirements and that the Australian Consumer Law also protects you.
Let’s Wrap It Up!
It is quite a decision to start your own business. Though it’s great to plan to make a living from your passions, a lot goes behind this “great idea.”
So, be mindful of all the legal obligations that you need to fulfill to have a smooth experience with your start-up!