What are the steps to be followed after setting up an Australian company?

Introduction:

Starting a Pty Ltd company is a significant achievement that requires a great deal of effort and dedication. It's a proud moment to have made it to the point where you have successfully set up a company business structure in Australia.

However, as exhilarating as this accomplishment is, it's essential to acknowledge that the real work begins now. Running a company requires more than just having an idea, there are several critical steps to take after setting up a company to ensure its success such as complying with legal obligations.

That's why we have put together this post to guide you through the essential steps to take after you register a company in Australia. From getting your finances to developing a marketing strategy, we'll provide you with the tools you need to take your business to the next level.

So, sit back, and get ready to take notes because this post is going to be your go-to guide for running a successful Australian company.

Steps to follow after setting up a company business structure

Let's dive deep into the steps that you need to be taking right after setting up a company.

Register for an Australian Business Number (ABN)

After you register a company in Australia, one of the crucial steps to take is to register for an ABN. An ABN is a unique 11-digit identifier that helps the Australian government keep track of businesses operating in the country. By obtaining an ABN, your business will be able to claim Goods and Services Tax (GST) credits, participate in government contracts, and apply for business loans.

Additionally, having an ABN can lend credibility to Australian companies and assure potential customers and partners that their company is legitimate. Registering for an ABN is a simple process that can be done online through the Australian Business Register website or through professionals who can guide you through the process.

To register for Pty Ltd companies, you'll need to provide details about your business, such as company name, company structure, and activities. Once you have received your ABN, you are ultimately responsible to keep the company's details up to date and provide accurate information to the Australian Business Register.

Register for GST

After obtaining an Australian Business Number (ABN), the next step for a business in Australia is to consider registering for GST. GST is a 10% tax that is applied to most goods and services sold or consumed in Australia. Registering for GST is mandatory for businesses with an annual turnover of $75,000 or more, but smaller businesses may also choose to register voluntarily.

Registering for GST is straightforward and can be done online through the Australian Taxation Office (ATO) website. Businesses will need to provide information about their ABN, estimated annual turnover, and the date they want their GST registration to start. Once registered, businesses will need to collect GST on taxable sales, file regular GST returns, and pay the GST owed to the ATO

While registering for GST can seem tiring, it can offer several benefits for businesses, such as claiming GST credits on purchases made for business purposes.

Register for PAYG withholding

If you have employees or make payments to contractors or businesses that don't provide their ABN, you must register for PAYG withholding in Australia. This tax system requires employers to withhold tax from their employee's pay and remit it to the Australian Taxation Office (ATO) on their behalf.

To register, you can apply online through the ATO website or complete a paper form with the help of tax professionals. Once registered, you must collect PAYG withholding and send the withheld amounts to the ATO at regular intervals. This helps your payees meet their tax liabilities at the end of the financial year.

As an employer, you're also required to lodge activity statements and pay the withheld amounts to the ATO. You must provide payment summaries to all employees and other payees by 14 July and a PAYG withholding payment summary annual report to the ATO by 14 August. However, if you have reported and finalized amounts through Single Touch Payroll (STP), you won't need to provide payment summaries or lodge an annual report to the ATO for those amounts.

Set up a bookkeeping and accounting system

You can use accounting software like Xero or Quickbooks to keep track of your financial transactions, manage cash flow, and generate financial reports. It's essential to choose the right software for your business, as the software's features and capabilities may vary.

In addition to accounting software, it's important to have a bookkeeping system in place to record and manage financial transactions of your new company manually. This system should include processes for managing invoices, receipts, and expenses, and ensure that all transactions are accurately recorded.

Effective accounting and bookkeeping systems can help you keep track of your business's financial health, make informed financial decisions, and comply with tax and regulatory requirements. It's advisable to seek advice from a qualified accountant or bookkeeper to ensure that your accounting and bookkeeping systems are set up correctly and tailored to your business's needs.

Open a bank account

Keeping your business finances separate from your finances is crucial for accurate financial management and tax purposes. Having a dedicated business bank account can also make it easier to manage your cash flow and track your business's financial performance. One of the easiest ways to do this is to open a dedicated proprietary company bank account.

In Australia, various banks offer business banking services, including the Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) Both banks allow business owners to open accounts for free, with low or no ongoing fees, depending on the type of account you choose. It's important to review the fees and features of different business bank accounts to ensure that you choose the best option for your business's needs.

When opening a proprietary company bank account, you'll typically need to provide identification, business registration documents, and proof of registered office address. Once your account is set up, you can use it to manage your business finances, receive payments from customers, pay bills, and track your transactions.

Obtain necessary licenses and permits

Depending on the nature of your business and industry, you may need to obtain specific licenses and permits to operate legally. These can include permits for building and construction, food handling and safety, liquor licensing, and environmental permits.

Failure to obtain the necessary licenses and permits can result in fines or legal action, and may also jeopardize the safety of your employees and customers. To ensure that you comply with all legal requirements, it's important to research the permits and licenses that apply to your proprietary company and obtain them before commencing operations.

Get business insurance

Business insurance is crucial to protect yourself against potential risks and liabilities associated with running a proprietary company. Depending on the type of business, you may need specific types of insurance. Examples include public liability, professional indemnity, cyber liability, and business interruption insurance.

CleanSlate's referral arrangement with BizCover allows small business owners to access a wide range of insurance products,. By partnering with BizCover, CleanSlate can offer a seamless insurance experience, ensuring that its clients receive the best possible protection for their business structures. This allows small business owners to focus on growing their businesses while leaving their insurance needs in the hands of trusted professionals.

Hire employees

When it comes to growing your proprietary company, hiring employees can be an important step. But before you start the recruitment process, you need to consider various factors, such as the skills and experience required for the role, the number of employees you need, and your budget. You also need to ensure that you comply with all relevant employment laws and regulations, including providing fair wages, benefits, and a safe working environment.

Setup a website

In today's digital age, setting up a website is essential for any business looking to establish a strong online presence. A website allows you to showcase your products or services, connect with potential customers, and build credibility in your industry.

To set up a website, you'll need to choose a domain name from providers like GoDaddy, VentralIP, etc., select a web hosting provider, and design the layout and content of your site. It's important to ensure that your website is visually appealing, user-friendly, and optimized for search engines to attract and retain visitors.

Register for trademarks and patents

If you have a unique product or service that you want to protect, registering for trademarks or patents is necessary. Trademarks protect your business name, logo, and branding, while patents protect your inventions or innovative ideas. By registering for trademarks or patents, you can prevent others from using or copying your intellectual property, which can help safeguard your business and its assets.

Obtain permits for special activities

Certain special activities may require permits or licenses to ensure compliance with regulations and safety standards. These may include events, construction projects, outdoor advertising, and more.

Obtaining permits for these activities is important to avoid fines or legal issues and to ensure that the activity is conducted safely and responsibly. The process of obtaining permits can vary depending on the type of activity and the location, so it's important to research and follow the necessary steps to obtain the required permits.

Comply with privacy and data protection laws

Complying with privacy and data protection laws is crucial to safeguard your business reputation and customer trust. Under the Australian Privacy Principles (APPs), you must take reasonable steps to protect the personal information of your customers, including the way you collect, store, use, and disclose their data. This means having a privacy policy that outlines how you handle personal information, obtaining consent for its use, and keeping it secure.

You should also have a plan in place to respond to data breaches and report them to the relevant authorities. By complying with privacy and data protection laws, you can avoid penalties, legal action, and reputational damage while demonstrating your commitment to ethical business practices.

Comply with industry-specific regulations

Compliance with industry-specific regulations is crucial for businesses to operate legally and ethically. Different industries have their own set of regulations, laws, and codes of practice that businesses must adhere to, to avoid penalties or legal action. For instance, food businesses need to comply with food safety regulations to ensure that the food they produce is safe for consumers to eat.

Similarly, financial services providers are required to comply with financial services regulations to protect consumers and maintain market integrity. Environmental regulations mandate businesses to reduce their impact on the environment and to ensure the health and safety of employees. Therefore, it's essential to understand and comply with industry-specific regulations to operate a successful and sustainable business.

Consider marketing and advertising

Marketing and advertising are critical for the growth and success of any business. Creating a strong brand identity, identifying your target audience, and developing effective marketing campaigns can help you reach new customers and increase sales. You may need to consider various marketing channels, such as social media, email marketing, paid advertising, and content marketing, to effectively promote your products or services.

Advertising regulations may also apply, and it's important to ensure your advertising materials comply with any applicable laws or industry codes of conduct. A well-executed marketing and advertising strategy can help you build a loyal customer base and achieve long-term success for your business.

Conclusion

By following the outlined points given in this blog post, you can easily set your business for success and build strong foundations for a brand that will last. From having an ABN number to choosing the right structure, it might be a lot of work on the company details but remember not to rush the process.

A well-thought-out business plan will help you stay on track with your goals and keep you focused during difficult times. Once your company in Australia is established, make sure that legal and taxation rules are complied with to avoid any potential issues in the future. If you are interested in having an experienced partner to guide you throughout your business setup journey, contact CleanSlate as we have years of experience and offer tailored services that guarantee customer satisfaction.

Setting up a business is a lengthy process, however, by taking it step-by-step you are more likely to succeed in the long term. So don’t hesitate to take those first steps toward creating something amazing!