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Starting a Business
You can start a business in Australia operating under (1) your own name, (2)
under a Business Trading name or (3) as a Limited Company.
Trading under your Own name
Depending on your occupation you may need a licence to commence trading and
that is covered under the page at
http://www.britzinoz.com/info/lic_trade.htm.
You may also need to register for GST if your turnover exceeds the threshold
$75,000. (as at July 2007)
Business Trading name
Here are some useful
links and information Extracts from:
Business Entry Point
Registering a business name in Australia (Not a Limited Company - see below)
A business trades under its business name. Registration of that name is
compulsory in every state and territory from which your business operates and
must be completed before you start trading. Each State has its own office for
business registration and these can be found
here. If your business operates in more than one State, then you must
register in each State that you operate from.
Registration identifies the legal owners of
the business. A common misunderstanding is that a registered business name
provides some protection or ownership of that business name. This is not the
case - a business name registration serves only to identify your business from
other businesses in your State and Territory, it will not provide you with legal
protection. In order to gain exclusive legal rights to your name throughout
Australia, you will need to apply to register a trade mark.
Choosing a business name
Choosing the right name is very important to your business. ASIC's Identical
Names Check is a record of all company and business names registered in
Australia, as well as some association names. You can search the Check, free of
charge, to see if your proposed business name already exists.
http://www.search.asic.gov.au/gns001.htmlYou should also ensure that
your proposed business name does not infringe any trade mark by checking with IP
Australia.
Displaying your business and company name
A company must display its name prominently at every place at which the company
carries on business and that is open to the public. A public company must also
display its name and the words "registered office" prominently at its registered
office.
Once your business name is registered it must be placed on public display at
every place you do business. The Business Registration Certification must be
displayed in the principal place of business (the place where most of your
business is conducted) where it can be easily seen.
Your business name must be printed or written exactly as it is registered - on
every business letter, invoice, receipt, or other document used by your
business.
Registering a business trademark
A trademark is a letter, word, phrase, sound, smell, colour, shape, logo,
picture, aspect of packaging, or any combination of these. It is used to
distinguish your goods and services from the goods and services of other
traders. You can search IP Australia's online databases for similar trade marks,
basic trade mark details and an image of the trade mark if applicable.
Registering a domain name
If you intend to trade online, registering your website address (domain name)
should be an early step in implementing your business plan. The e-business guide
provides information on getting a website name. Visit the .au Domain
Administration Ltd website,
www.auda.org.au, for links to registrars and resellers, to confirm current
fees and options.
Taxation implications of starting a business in Australia
Companies registered under the Corporations Law and business entities carrying
on an enterprise in Australia are entitled to an ABN. All businesses with an
annual turnover of $50,000 or more must register for GST and will need an ABN to
do this. Organisations with a lower annual turnover may choose to register.
Application or enquiry for
a tax file number - for individuals living outside Australia
Use the form on
this ATO page to apply for or enquire about a tax file number for individuals
living outside Australia.
Australian Business Register (ABR)
The ABR is the central collection, storage and verification system for basic
business identity information from all entities with an ABN. ABRpublic is an
online database that contains the publicly available information provided by
businesses when they register for an ABN.
Goods and Services Tax (GST)
Goods and services tax (GST) is a broad-based tax of 10 per cent on the sale of
most goods and services and other things in Australia. You must register for GST
if you are an entity carrying on an enterprise - if you are in business and not
a hobby you will meet this requirement if your annual turnover is at or
above the registration turnover threshold of $75,000 ($150,000 for non-profit
organisations). For more information see the ATO's Guide to GST for small
business.
Residency
The Tax Office determines your residency status differently to the Department of
Immigration & Multicultural & Indigenous Affairs (DIMIA). Generally, the ATO
considers you to be an Australian resident for tax purposes if you have:
* always lived in Australia
* come to Australia and live here permanently, or
* actually been in Australia for more than half of the financial year, unless
your usual home is overseas and you do not intend to live in Australia.
What is the ABN?
If you're in business you should register for an ABN. Your ABN is unique to your
business and is important in your dealings with other businesses and government
agencies. Find out whether you need an ABN and how it affects your business. You
may also need to register for GST.
Forming a Limited Company
Australian Company Registration
provides an applicant with an Australian Company Number (ACN) which, together
with the name and the status of the company, serves to identify it.
Applicants may reserve a proposed company name for a period of two months.
The ASIC is obliged to reject the proposed name if it is identical to another
company or business name or if the name is of a kind, declared by the
regulations, to be unacceptable for registration.
If a company wishes to trade under a name other than in the registered company
name, it will be necessary for the company to register that trading name as a
business name in each state in which it plans to use it.
If you wish to use words in your name to identify your goods or services,
consider applying for trade mark registration.
If you do not register a trade mark, another trader could register your business
or company name as a trade mark for their goods or services and prevent you from
using it.
Business name or company registration does not automatically allow applicants to
use that name as a trade mark.
Australian Company Name Registration Fees
Registration fee: (share capital) $400.00 (This fee is GST* exempt)
(no share capital) $330.00 (This fee is GST* exempt)
Reservation fee: (optional) $40.00 (This fee is GST* exempt)
Australian Securities and Investments Commission (ASIC)
www.asic.gov.au
There are various companies that specialise in Company Registrations on your
behalf, and they charge about $530
including GST, for the set up. (Price current at May 2008)
Operating a UK business from Australia
Some new migrants are in
the position of still being able to carry out employment of various types in the
UK, even whilst living in Australia.
This can have major benefits if it is set up correctly.
The easiest way is to simply trade under your own name, and invoice the UK
income source. Remember that the the invoice will be GST/VAT free, as it will be
an invoice from one country to another. However, you can register for GST here,
and claim back certain GST expenses, where applicable.
To make it easier for the UK payer to submit funds to you, I feel it is best to
retain a UK bank account, for them to pay into.
You then need to create a system, for sending funds over to your account here in
Australia.
This can be done via bank transfer, one example being to have an HSBC bank account in
both countries. However, I have heard that using one of the money transfer
companies can be cheaper.
Another option, depending on the amount of income you receive, is to use your UK
credit card here in Australia, and pay the bill monthly with the funds that are
arriving in your UK bank account.
The important thing to remember is that after becoming Resident here, you MUST
declare ALL worldwide income to the Australian Tax Office.
But, by invoicing from Australia, you do not need to declare it in the UK, so
you only deal with one tax office.
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