Business Registration

There are two separate and distinct steps. The first is to bring the business structure into existence, and then, secondly, to register with the Australian Taxation Office.

Bringing the business structure into existence

> Sole proprietorship
There is no special steps required to become a sole proprietor. A sole proprietor can trade in his or her own name. However, if the sole proprietor intend to use a business name, then that name should be registered in accordance with the Business Name Act 1962 (NSW).

> Partnership
A partnership is usually established with a written partnership agreement. The partnership agreement defined the rights and obligations of the partners between themselves subject to the Partnership Act 1982 (NSW).

> Company
A company comes into existence on registration by Australian Securities and Investment Commission. A company may adopt either a tailored constitution or the replaceable rules. Companies can be established in hours if required.

>Trust
A trust is created by payment to the trustee of an amount called settled sum which the trustee agrees to hold, together with any other money paid or property transferred to it, in accordance with the terms and conditions of the deed of settlement executed by the settlor and the trustee. The settled sum together with any other money paid or property transferred to the trustee becomes the trust fund.

Registration for ABN, GST, TFN

Registration for Australian Business Number (ABN) is compulsory for all business. It is an unique number that identify each business. Depending on the business structure, a separate Tax File Number (TFN) may be required.

The Goods and Services Tax (GST) is a consumption tax that apply to the supply of most goods and services, at a rate 10 percent of the price charged for taxable goods and services.

GST is not an additional tax on business, but the understanding of the concepts is essential for businesses.

The design of GST is to tax private final consumers on the supply of goods and services in Australia. Therefore, it is only a temporary cost to businesses. Most transactions between businesses will involve GST, but every time you business incurs an expense that includes GST, you may claim the GST component back (input tax credits).

GK & Co. Certified Practising Accountants. Registered Tax Agents.

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