Buying a Business in Australia or Establishing a New One Calls for Hand-in-Hand Work with Numerous Government Agencies
Whether buying a business in Australia or establishing a new one, you will be required to work closely government agencies prior to opening your doors.
You can expect to work closely with Australian federal, state/territory and local government agencies as you work to register your business for taxation purposes, register your business or company name, your domain name and, in some instances, obtain business licenses and permits.
Business Name Registration
If you buy a business in Australia and do not change the business name, you are not required to register the name in the State or Territory in Australia where the business is located because it is assumed that the previous business owner completed this process.
On the other hand, if you establish a new business or change the name of the business you buy in Australia, one which is under a name other than the company’s or the owner’s name, you will be required to register that name in the State or Territory in Australia where the business is located.
Website Address
Additionally, registration of a business name also provides an avenue for obtaining a ‘.com.au’ domain name, which is simply your business Internet address (also referred to as a URL). The ‘.com.au’ ending to the Internet address indicates your business is based in Australia. These addresses are regulated by The Australian Domain Name Administrator (.auda) and registration of the business name as a URL is based on the availability of the name.
Trade Mark
You should also know that The Australian Securities & Investments Commission (ASIC) operates a National Names Index, which is a record of all company and business names registered in Australia, as well as some association names. You can check the Index, free of charge, to see if your proposed business name already exists.
You should also ensure that your proposed business name does not infringe any Trade Mark by checking with IP Australia.
Business Structure
If buying a new business, you will also need to decide what business structure you will use, based on your unique needs and your budget.
There are four main types of business structures commonly used by small- to medium-sized business in Australia, and these include:
1) Sole Traders
2) Partnerships
3) Trusts
4) Companies
Note: Application for incorporation (to become a company) is made to the Australian Securities and Investments Commission (ASIC). On registration, each corporation is allocated an Australian Company Number (CAN), a unique identifying number.
Australian Business Number
All businesses that intend to trade must register for an Australian Business Number (ABN) for taxation purposes. Your ABN is unique to your business and is important in your dealings with other businesses and government agencies.
Once your business generates more than $50,000, you will also need to register for Goods & Services Tax (GST). To obtain input tax credits for GST purposes, your business must have an ABN number.
Hiring Employees
As an employer, you will also have certain legal obligations to your staff.
For instance, you must register with the Australian Taxation Office, pay wages according to the relevant State of Federal award, keep employment records, comply with occupational health and safety requirements, comply with employment terms and conditions and pay superannuation contributions.
Your legal obligations to your employees will vary based on their status. While you can hire apprentices and trainees, your obligations to these types of employees will be different than your obligations to full-time employees, fixed-term employees and those with special sets of circumstances, such as those you hire from overseas, for example.
It restricts certain forms of exclusive dealing, abuse of market power and mergers, which result in a substantial drop in competition.
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