Business Registration
Registering your business is required by the government to make it official. This also makes sure that your business gets taxed with the right rates, avoids penalties, and protects your brand, assets, and ideas.
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What is Business Registration?
Business registration is the process of ensuring that you prepare and submit all government requirements to make your new business official. This process includes registering your –
Australian business number (ABN) – This is an 11-digit number that is unique to your business which customers, suppliers, and the Australian Taxation Office (ATO) use to help identify your business.
Business name – This is the specific name and brand that your business operates under and will differentiate it from your competitors.
Taxes – These are taxes that will apply or are compulsory to the business you are starting depending on its size and type, your activities, and turnover. Some are optional and are simply there to make your life easier.
Licences and permits – These will vary depending on the location of your new business and the industry or industries that you are in.
Company – This is if you decide that a company is the right business structure for you which effectively creates a legal entity that is separate from you with its own legal obligations.
Trademark – This is to protect your business and brand as well as other proprietary assets and ideas from being used by others.
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Why is Business Registration important?
ABN number registration is important to differentiate your business from others when ordering and invoicing, avoid pay as you go (PAYG) tax on payments you get, claim goods and services tax (GST) credits, claim energy grants credits if applicable, and to get an Australian domain name. This is why business ABN registration is highly critical.
Business name registration is important as it not only lets everybody know the name you are operating under but also helps your customers make an emotional connection to your business and brand.
Tax registration is important because you need know exactly what your tax obligations are, how much you need to pay and when, and to avoid any penalties or, in the worst case scenarios, even jail.
Registering for licenses and permits is important to get approval to do certain activities, show that you adhere to Australian government standards, and also protect your business and employees from various eventualities.
Company registration is important because this will separate yourself from your business by creating a legal entity with its own legal obligations as well as financial and record-keeping responsibilities compared to other business structures.
Registering trademarks is important to protect your business and brand such as your name, logo, and other assets and ideas you own from being used by others and gives you the sole right of using them.
