Regardless if you are a startup or looking to expand your business, you may want to start establishing your company. Although planning to register a company in Australia may seem like a huge step, there are numerous benefits when you trade under a company structure.
Is it easy to do business in Australia?
According to research by the World Bank, Australia is one of the world’s best places to do business. Overall, Australia has improved and reached 14th place in the world when it comes to ease of doing business.
- Establishing Business Bank Accounts
When running a business, you need to prove that your business is appropriately registered with the government to open a business bank account. A business bank account is a vital asset, especially for small businesses, because you can separate your personal activity from your business activity. It is also more professional to provide your client with a business name when they make payments instead of using your name.
- Obtaining loans
When you apply for loans for your small business, you need to prove that you are actually a business. Lenders, as well as investors, will request your registration along with other documents prior to approving your loan. When you are applying for a credit card as a business entity, lenders may also ask to see the paperwork. Because of this, it is critical to register a company in Australia.
In Australia, certain businesses are profitable. The most popular are accounting, legal services, as well as advertising. Small enterprises in these sectors contribute to nearly 46% of the industry’s GDP.
Businesses that are registered will have an identifying number for their tax responsibilities depending on the state and location they are doing business. It makes the business legitimate and legal. Furthermore, it makes sure that they are compliant with bookkeeping and accounting. It establishes that the business is a taxpayer and employees are covered with insurance. The business is also reporting its income to the government. There are numerous tax benefits to registering a business.
To operate a small business in Australia, you will need a certain amount of capital. Australians will be spending anywhere between $3000-$5000 when it comes to starting a small business. Depending on the structure and industry of the business, some small businesses might have to shell out up to $10,000.
- Improve your position with customers
When you register your business, you will be establishing trust with your customers. Customers and clients you have never collaborated with before will need assurance that you are a genuine business. Potential clients may suspect that your business is simply fly-by-night if your company isn’t registered properly. When a business has a file with the state, it can mitigate misgivings in your clients when making a decision about whether to invest money in your company.
- Arrangement with suppliers
Businesses that are registered also make them eligible to receive supply discounts that are typically not received with an operation that is unregistered. Suppliers will reserve their wholesale rates for business owners who can show legal documents from the government. Also, if you are planning to get government contracts for your company, a business that is registered is one of the crucial requirements.
- Hiring employees
A business registration allows you to hire employees full-time. When you register your business, you will be receiving an identification number that allows you to route state taxes on behalf of the employee. Because of this, if you plan to hire an employee to your business, it is best to take care of your business’s registration with the state prior to hiring workers.
There are numerous advantages to registering your business. Not only will you have a more professional image, but you can also take advantage of the perks that the government and other businesses will provide.