STONES of PHILLY

What is registering a business?

Business registration is a process that is required by law. You must know that when you actually register a business, it allows the public to know who is operating the company. This means that you are ensuring that no one else can operate their business under the same structure. When starting a new venture or wanting to grow your business, you can or may have already been considering starting a company. 

Business registration gives you protection under laws and helps protect your business. There are many states in Australia offering various opportunities for a business to flourish. The registration of a company is quite straightforward and takes only a week to incorporate a company. 

The government offers benefits for the set up of international companies. On 30th June 2021, 2,402,254 were actively trading businesses in the Australian economy. There was a 38%increase in the number of businesses in 2020- 2021, with a 15.8% entry rate and 12.0% exit rate. 

Startups these days are the global sign of development.

There has been a growth in these startups all around the world with several utility factors. The younger generation is coming up with fresh ideas to change people’s lives and the issues they face and give them a tab in an entrepreneurial way. The first step in the entrepreneurial journey begins with company registration. This step is vital for all startups to form a big business organisation.

Though registering a company can seem like a huge task, trading under a company structure has many benefits:

Free trade agreements

In Australia, the trade agreements with other countries are free, allowing it to carry out undisrupted trade. Australia also has DTAA with other countries, which will not tax an investor twice. 

Stable business environment

Australia has an ideal environment for carrying out different forms of business activities. A stable political system supports such an environment. The inflation rates are low in the country, and because of this, investors can go through the process of registering a company.

Best place to start a business

Australia is one among the best places for carrying out business opportunities. The corporate tax is 30%, but if a foreign investor is interested in incorporating a company in Australia, the corporate tax payable is 26%. However, this is possible only if a company’s turnover is A$2 million per annum. It is also an excellent place to carry out research and development activities. 

Legitimacy and brand awareness

`All the biggest brands in the world are registered companies. In order to have an expansive and successful business, a company structure is necessary. By registering your business, the reputation and perception of your business are enhanced. You will also operate under an Australian company Number and be accountable to ASIC. When dealing with third parties, many businesses engage or hire registered companies which means that your business contracts will not have your name but your company’s. 

Limit personal liability

As a sole trader or in a partnership, you are legally responsible for all aspects of business, including debts and losses. Running a business can be very risky because it means that your personal assets are also at stake. Companies are a separate legal entity and are an easy way to keep your personal assets protected from your business actions. Debts that are attached to the company will not be attached to you. This means that you can entirely focus on building your business. 

One of the best ways to grow and expand your business and ensure its success is to register a business. So, in this article, you learnt why registering a business is beneficial in Australia.