Starting a business can be a daunting task not only from a cost and time perspective but from a legal and regulatory standpoint. Understanding what licenses and registrations you must have to ensure compliance with the myriad of laws, regulations and rules is imperative to success.

We advise clients that each business has to be looked at individually and you must consider the industry or profession the business will operate in along with its geographical location/s.

Both Federal and State Government agencies have a lot of information which is aimed at assisting a start-up business, but you need to be able to find your way through the legal and other requirements to ensure compliance.

Non-compliance can lead to sanctions, fines and in some cases even criminal proceedings.

It is impossible to give a comprehensive list of all possible requirements but in this article, we will consider some of the more common ones.

Business Registrations

Some of the key registrations you may need to apply for are:

Australian Business Number (ABN) -An ABN is a unique number which identifies your business to the government, customers/clients and other businesses. Not everyone will need an ABN for example if you ae earning less than $75,000.00 a year.

Australian Company Number (ACN) – An ACN is a unique number provided by the Australian Securities and Investments Commission (ASIC) to every company registered in Australia.

Director Identification Number (DIN) – This is a unique number issued by the Australian Business Registry Services (ABRS) and is required by all individual directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.

Domain name and unique resource locator (URL) -This is the businesses web address. The domain name is part of the URL and made up of the following:

• HTTP or HTTPS: if a website has a security certificate (SSL), the first part of the URL will be HTTPS. If there’s no security certificate, it will be HTTP
• www: shows that this is a website displayed on the World Wide Web
• domain name: the name of your website for example fclawyers
• domain name extension: the part of the URL following the domain name, such as .com.au, .com or .net.

Goods and Services Tax (GST) registration -If your business is earning more than $75,000.00 a year you must register for GST with the ATO which is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

Registered business name -This is the name the business will operate under, and it will depend on what the business structure is such as an individual or partnership as to how it is portrayed. 

Tax File Number (TFN) – A TFN is issued by the Australian Taxation Office (ATO) to all entities which pay tax whether a company, individual, partnership, superannuation fund or trust. Not all individuals have to have a TFN whilst a business has both a TFN and an ABN.

Protecting you Intellectual Property

Often one of the most valuable assets of any business is its intellectual property.

In Australia there are basically four types of intellectual property that any business would want to protect, and it is important to understand them all even though some do not require registration:

Copyright – This protects original works such as artistic creations, films, music and writings.  The copyright exists once the work is created and in Australia does not require registration, but it is important that advice is sort on whether aspects of the copyright need to be protected.

Trademark – This is the unique brand of the business and distinguishes it from other brands, products or services. It is not necessary to register a trademark but the benefit of having it registered is that it will provides stronger legal protection. Registration is through IP Australia and will last for 10 years before having to be renewed.

Patent – A patent provides protection to inventions and is legally enforceable for a device, substance, method or process. Registration is through IP Australia and will last for up to 20 years for a standard patent and 25 years for a pharmaceutical patent.

Trade Secrets – This is confidential information that allows the business to have a competitive edge. It could be secret formulas, methods or process. Trade secrets are not registered with IP Australia and retained by the business. The best example would be Coca-Cola’s formula for their beverage.

Business Licenses and Permits

A business licence or permit is generally issued by a local, state of federal government department and allows permission for that business to operate lawfully.

For example, local government licences include but are not limited to such things as:

• Activities in council owned spaces
• Development
• Entertainment
• Food and dining
• Operation of a home-based business
• Signage

On the other hand, State or Federal licences could include:

• Aviation
• Broadcasting
• Building
• Environmental
• Financial services
• Import/export
• Liquor
• Professional and trade
• Drivers and vehicle operators

While private organisations may offer certifications or training programs, these are distinct from government-issued licenses. 

Conclusion

As can be appreciated from this article starting a business can be complex and it is important that when you are considering starting a business you do it correctly and have the necessary registrations, licenses and permits in place to ensure compliance with the myriad of legislation that operates to regulate business in Australia.

At FC Lawyers, our experienced business and corporate team have assisted thousands of clients set up their businesses and associated structures to ensure compliance with the laws surrounding business operations.

No matter what industry or profession you intend setting up a business in, contact our team to discuss your needs.