Whether you’re a sole trader starting your very first venture or an established company launching a new brand, taking the time to do a proper business registration will mean you’re compliant with legal requirements and can focus on what’s most important: taking your business to new heights.
So let’s jump straight into the essentials of business registration, including what you’re required to do, how to register, how to protect your business name and IP, as well as a few other handy tips.
What is business registration?
Business registration is the official process of how you can legally establish your business in Australia. There are a few different things involved, including registering a business name, getting an Australian Business Number (ABN), securing the right tax registrations and more. Once completed, your business will be recognised and you’ll be able to trade legally – in other words, sell your goods and services.
For small business owners, getting registered is the best way to build credibility with customers, partners, suppliers and other stakeholders. It also means you’ll be fully compliant with tax laws and your brand will be protected through intellectual property (IP) safeguards.
Steps to register your business in Australia
1. Choose your business structure
Before registering your business, decide on the most suitable business structure for you. This is important because different structures will have an effect on your tax obligations, liabilities, and registration requirements. Some of the most common structures are:
- Sole trader: A single individual who operates the business.
- Partnership: Two or more people or entities who share ownership.
- Company: A separate legal entity registered with ASIC.
- Trust: A business held and operated for the benefit of others.
2. Get an Australian Business Number (ABN)
An ABN is an 11-digit identifier that’s necessary if you want to conduct business here in Australia. You need an ABN to:
- Register a business name
- Issue invoices.
- Claim GST credits.
- Engage with government agencies.
You can apply for an ABN online through the Business Registration Service. You’ll just need to have your personal details, business structure and intended business activities ready for the application process.
3. Check whether the business name is available
Before you register your business name, you’ll want to make sure it’s completely unique and not already being used by another company. Below are three simple steps to make that happen:
- Search ASIC’s business name availability tool to check if the name is free and meets the current legal requirements.
- Check for trademarks by using IP Australia’s TM Checker.
- See if your preferred website domain name is available. It’s a good idea to choose a domain name that matches your business name to bolster your online presence.
4. Register your business name
Now it’s time to register your business name. You can search the register for existing companies and business names via the ASIC Connect platform, or head straight to the Business Registration Service.
The registration process is quick, usually taking less than 15 minutes if you have all your information handy. Registration fees are:
- $44 for one year
- $102 for three years
Protecting your business name and IP
Register a trademark
Registering your business name alone doesn’t grant you exclusive rights. The only way to fully prevent others from using your name for similar goods or services is to apply for a trademark, which will protect your:
- Business name
- Logo
- Slogans
- Original branding elements
Trademarks are registered through IP Australia and secure you exclusive rights across Australia for 10 years, after which time you can renew for another decade.
Stay compliant
Once registered, you’ll need to display your business name on all customer-facing materials, including but not limited to:
- Invoices and receipts
- Contracts and quotes
- Signage
- Websites and emails
Renewing your business name
Business name registrations must be renewed either annually or every three years, depending on the name you chose when you first registered it. ASIC will send a reminder at least 30 days before the renewal deadline.
How to renew your business name
- Log in to ASIC Connect (or use their ‘Pay now’ service).
- Choose the business name you want to renew.
- Confirm your details and payment method.
- Pay the renewal fee online.
- Receive confirmation of the renewal.
Bear in mind that if you don’t renew your business name on time, it could be cancelled or even snatched away by another business that wants to use the name. So it pays to stay on top of things.
3 reasons why you should use a business registration service
1. Legitimacy and trust
A registered business name assures customers and partners of your legitimacy, as it shows them that your business takes Australian laws and regulations very seriously.
2. Enjoy other business services
Many financial institutions and suppliers will require that you have an ABN and registered business name to do business together.
3. Protect your brand
Registering and trademarking your business name can safeguard your brand against any potential misuse or duplication.
3 common mistakes to avoid
1. Skipping the trademark search
Even if your business name is available for registration, someone with a similar trademark could challenge your use of it.
2. Failure to renew
Missing your renewal deadline for your business name could result in its cancellation, which would be hugely disruptive to your operations.
3. Choosing a name without researching it
A name that’s too similar to competitors or difficult to spell will cause headaches for your marketing and branding efforts.
Other Tips for Business Registration
Lock in a domain name early
Even if you’re not ready to launch a website, register a domain name that matches your business name so other people can’t take it out from under your nose.
Consistency across all your social media platforms will reinforce your brand. So sign up with handles that match your business name on places like Facebook and Instagram.
Get professional support
If you’re unsure about the registration process or the correct business structure for you, speak to a business advisor or accountant. They’ll be able to save you lots of time and money with the right advice.
