What You Must Know When You Register a Company in Australia
Australia is known for its booming trades. The top industries that are on the rise today are in the area of construction, transport, and professional services. In 2019, it was reported that there were two million companies that were actively trading in the country. It shows an increase of around 62,000 companies from last year. If you want to register a business in Australia, here are some bulletproof tips to ensure that your application runs smoothly:
ABN: The first step to your application
Getting an ABN is the first step to being a registered trading company in the country. It’s an 11-digit number combination that provides identification to your business. Not everyone is entitled to an ABN upon application. You need to provide a detailed business structure before being granted this number. Last 2019, only 15% of those who applied got their ABN.
If your business is not yet underway, then your application might be rejected. If all you have is just a business idea, then you will not get your ABN. For example, if you have not bought or leased a premise yet, then you are still not entitled to an ABN.
Having proof that you already have a license to operate would boost your application. Another tip to help you is to include the proof of purchase for your equipment so that the reviewer will know that you are serious about continuing your business.
Taxes: Your responsibility to the government
Once you have your identification number, the next thing you need to register a business in Australia is your Tax File Number (TFN). Other taxes such as payroll tax, fringe benefits tax, and the goods and services tax might also be required depending on the set-up of the business that you registered.
For instance, you need to register for a payroll tax if the salary that you’re paying for your employees is above your state’s tax-free threshold. If you are also providing additional perks to your employees, such as cars, discounted goods, and reimbursements, then you need to apply for fringe benefits tax.
Another essential tax requirement that you have to take into consideration is paying for good and services tax if your business earns about $75,000 a year.
What to do when your application got rejected?
You only have to wait for 2-3 days to know your results. Once approved, you can start now start working at full capacity. However, delays and rejections happen from time to time. One of the reasons that your application may not be immediately approved is the incompleteness of your documents.
However, you might also encounter being flagged for manual review, which could take up to 28 days. This might be due to concerns about your ABN and TFN. A representative might also call you up to get clarification about your business activities. In most instances, the government will give you a chance to fix your application before marking it as rejected. If you are worried about rejection, it might be helpful if you get help from accredited contractors who will walk you through the process.
Registering your company might be overwhelming, especially if this is your first time to process your application. To avoid delays and rejections, the most important thing you have to do is to ensure that every document that needed are clear and complete. Do everything legally and make sure that you comply with all your tax responsibilities to the country.
Author Bio: Kellie is a copywriter and content strategist. She helps businesses stop playing around with content marketing and start seeing the tangible ROI. She loves writing as much as she loves cake.
