Simplified business registrations agreed

The Council of Australian Governments (COAG) has recently approved a plan to simplify the current registration system for prospective businesses whose trading name will be different to their legal name. For example, a local plumbing business is owned by a company called Jack and Jill Pty Ltd. However, they trade under the name Up the Hill Plumbing.

At present, Jack and Jill Pty Ltd would have to separately apply for an Australian Business Number (ABN) with the Australian Taxation Office and then register their business name with the specified authorities in each state or territory they in which they wish to operate. To be a national business, they would currently need to register eight times (once with each state or territory authority) for a business name for a total cost of over $900, as well as applying for an ABN.

Under the new system, businesses operating in more than one state will be able to register once on a central government website and pay a single fee. This will cover the business name in each relevant state as well as the ABN, resulting in a lower overall fee. Local businesses will still be able to apply to be registered in only one state.

In addition, the system will incorporate a central website for accessing information required by business owners. The entire system will be better integrated and is estimated to save Australian businesses $1 billion over the next ten years. The system is intended to be set up by 2011.

We will bring you updates as this new and welcome initiative progresses.

Published : 12 August 2009