Starting a business in Australia, whether in food, retail, services, trades or any other industry, is an exciting venture. However, there are essential steps and regulations you need to follow to ensure your business operates legally and successfully. This guide will walk you through the process, including registering an Australian Business Number (ABN), choosing and registering a business name, understanding insurance requirements, and meeting specific industry compliance requirements, with examples tailored to food businesses where relevant.
- Registering an ABN for Free
An Australian Business Number (ABN) is required for all businesses operating in Australia. It’s a unique 11-digit number that identifies your business to the government, other businesses, and the public.
- Where to register: The fastest and easiest way to apply is through the Australian Business Register (ABR).
- Who needs an ABN? Sole traders, partnerships, companies, and trusts all need an ABN to operate legally.
- Why you need it: An ABN is crucial for invoicing, claiming GST credits, and registering a business name.
Pro tip: Applying for an ABN is free through the official ABR website, and it only takes about 10 minutes if you have your Tax File Number (TFN) ready. Avoid websites that charge for this service.
- Registering a Business Name
Once you have your ABN, the next step is to register your business name, especially if you plan to trade under a name that is not your own.
- Where to register: Use the ASIC Connect portal to search for and register your business name.
- Costs:
- 1-year registration: $44
- 3-year registration: $102 (don’t get scammed with other websites etc!!)
- Food business example: If you’re starting a café called “Sunny Side Kitchen,” registering this name with ASIC is essential to ensure its legally yours.
Pro tip: You can register your business name and ABN simultaneously through the ABR to save time. Search the registers in case the name you would like is already taken, also do a Google search (worldwide) and check social media handles to make sure they are available.
- Getting the Right Insurance
Regardless of your industry, having the right insurance is crucial to protect your business from unforeseen risks.
- Public Liability Insurance (PL): Covers claims for injuries or property damage caused by your business. This is essential for businesses dealing with the public, such as food vendors, retail stores, or event organisers.
- Professional Indemnity Insurance (PI): Protects against legal costs if a client claims your service or advice caused them harm or loss. Common in consulting, beauty, and creative industries.
- Business Insurance: Covers assets like equipment, stock, and premises. Ideal for both retail and food businesses.
Food business example: If you’re starting a food truck, public liability insurance is often a requirement to operate at markets or festivals.
- Where to get insurance: Look for business-specific insurers such as BizCover or Allianz. Policies start at around $300-$500 annually for small businesses.
- Industry-Specific Compliance
Different industries have unique compliance requirements. Below are some examples for general businesses and food businesses:
For General Businesses
- Licences and permits: Check your local council for any additional permits you may need to operate, such as home business approvals or specific industry licences. Visit Business.gov.au.
- Tax compliance: If your business turnover exceeds $75,000 annually, you’ll need to register for GST. Work with an accountant to manage your BAS (Business Activity Statements).
- Employment compliance: If hiring staff, ensure you comply with workplace laws, including Fair Work requirements, superannuation, and WorkCover.
For Food Businesses
- Kitchen approval: Food preparation spaces must meet local council and Food Standards Code requirements, such as proper ventilation, handwashing facilities, and safe food storage areas.
- Food safety certification: Most states require at least one Food Safety Supervisor. Online courses, such as those offered by the Australian Institute of Food Safety, cost $100-$150 and can be completed in a few hours.
- Key Startup Costs
Starting any business involves certain setup costs. Here’s an overview:
| Expense | Cost Range | Example |
| ABN Registration | Free | Required for all businesses |
| Business Name Registration (1 yr) | $44 | For trading under a name other than your own |
| Public Liability Insurance | $300-$500 annually | For customer-facing businesses |
| Food Safety Certification | $100-$150 | For food businesses |
| Licences & Permits | Varies ($100-$2,000+) | Dependent on business and council regulations |
- Marketing Your Business
Once you’ve set up your business, the next step is to attract customers. A strong marketing strategy is essential for growth:
- Social media presence: Platforms like Instagram, Facebook, and LinkedIn are invaluable for promoting your business and engaging with customers.
- Google My Business: Register your business on Google My Business to appear in local search results and maps.
- Website: Even a simple website can help establish credibility. Tools like Wix, WordPress and Squarespace make it easy to create one without technical expertise.
Food business example: Share photos of your food on Instagram or post videos of your preparation process to build excitement around your brand.
- Common Challenges and How to Overcome Them
- Compliance confusion: Regulations can vary between industries and states. Use tools like Business.gov.au’s Licences and Permits Finder to clarify what applies to you.
- Financial management: Budgeting is key, especially for businesses with high upfront costs like food trucks or cafés. Consider using accounting software like Xero or MYOB.
- Customer trust: For new businesses, building credibility takes time. Use testimonials, certifications, and a professional online presence to build confidence with your audience.
Starting a business in Australia requires careful planning and compliance with legal requirements, but it’s also an incredibly rewarding journey. From registering your ABN and business name to ensuring you have the right insurance and licences, every step is vital for your business’s long-term success.
Make sure you check out all the help and support available to you, including Self-Employment Assistance, and good luck with your new venture!