Step 1: Validate Your Idea First

Before any registration: confirm there is genuine demand for your product or service. Talk to potential customers. Research competitors. Understand your pricing, costs and how you will reach customers. Validation before launch saves significant wasted effort and money. Most business failures stem from inadequate market testing, not registration problems.

Step 2: Choose a Business Structure

  • Sole trader (simplest): You operate the business as an individual. Simplest to set up (ABN only needed), lowest compliance cost. You are personally liable for business debts. Best for freelancers, tradespeople, consultants starting out.
  • Partnership: Two or more people operating together. Each partner is personally liable. Requires a partnership agreement. Suitable for small professional partnerships.
  • Company (Pty Ltd): A separate legal entity. Limited liability (your personal assets are generally protected from business debts). More complex to set up (ASIC registration, ~$500–600) and higher ongoing compliance. Suitable when revenue grows or for businesses with significant risk.
  • Trust: Complex structure with tax flexibility advantages. Requires a lawyer to set up. For established businesses with professional advice.

Step 3: Register

  1. 1

    Get an ABN at abr.gov.au

    Apply online at abr.gov.au — free and typically issued within minutes. You need your tax file number (TFN), details of your business activities and structure. An ABN is required to invoice other businesses, register for GST, and operate as a legitimate business. Even if you are a sole trader you need an ABN.

  2. 2

    Register a business name (if needed)

    If you are trading under a name other than your own full name, register a business name with ASIC at asic.gov.au. Cost: $42 for 1 year or $98 for 3 years. Search for name availability first. A registered business name does not give trademark protection — consider trademark registration separately if brand protection matters.

  3. 3

    Register for GST if turnover exceeds $75,000

    If your annual turnover is or is expected to exceed $75,000, you must register for GST (Goods and Services Tax). Register via the ATO Business Portal or through your accountant. Once registered, you collect 10% GST on sales and remit it to the ATO quarterly, but can also claim back GST paid on business purchases.

  4. 4

    Open a separate business bank account

    Keeping business and personal finances completely separate is essential for tax purposes and managing cash flow. Most Australian banks offer business accounts — compare fees as they vary significantly. Some online banks (Xero, Prospa, Up Business) offer low or no-fee small business accounts.

Use a business plan and get professional adviceAn accountant experienced in small business can save significant money and prevent costly mistakes from day one — particularly around tax structure, GST registration timing and superannuation obligations for any employees. Many accountants offer a free initial consultation. business.gov.au is the Australian government’s free small business resource site with extensive guides.

Frequently Asked Questions

Not if your turnover is under $75,000 per year — GST registration is optional below this threshold. However, voluntary registration can be beneficial if you have significant business expenses with GST you want to claim back, or if most of your clients are businesses (they can claim the GST credit from your invoices, making you more competitive to work with). Discuss with an accountant whether early GST registration makes sense for your specific situation.
Depends entirely on your industry and location. Trades (electrical, plumbing, building): state-issued licence required. Food business: local council food licence. Childcare: state government licensing. Professional services (financial advice, legal, medical): ASIC, legal or medical professional registration. Most businesses require a council business registration or development approval if operating from premises. Check the Australian Business Licence and Information Service (ablis.business.gov.au) — enter your business type and location and it lists all required licences and permits.