New Business Formation in Melbourne

What Business Structure Should I Choose in Australia?

The four main business structures in Australia each have different tax and legal implications. A sole trader is the simplest — you trade under your own TFN and are personally liable for all debts. A partnership distributes income between partners but also shares liability. A proprietary limited company (Pty Ltd) is a separate legal entity, limiting your personal liability to unpaid share capital, and pays the small business company tax rate of 25% (for base rate entities with turnover under $50 million). A discretionary trust distributes income to beneficiaries and can be highly tax-effective for family groups, but involves ongoing trustee obligations and does not provide the same asset protection as a company. Most Melbourne business owners with genuine commercial risk should incorporate a company or use a company as trustee of a discretionary trust.

How Do I Register a Company in Australia?

A proprietary limited company is registered through ASIC. The registration process involves choosing a company name, appointing at least one director (who must be an Australian resident), issuing shares, and preparing a constitution or relying on the replaceable rules in the Corporations Act 2001. ASIC charges $597 to register a proprietary company (2024–25 fee schedule). The company then needs an ABN and TFN from the ATO, and GST registration if annual turnover will exceed $75,000. We manage the entire ASIC registration and ATO registration process, typically completing it within 3–5 business days.

What Is a Discretionary Trust and Why Do Melbourne Businesses Use One?

A discretionary trust (commonly called a family trust) is a legal structure where a trustee holds assets and distributes income to a class of beneficiaries at the trustee's discretion each year. It is popular with Melbourne family business owners because it allows income to be distributed to low-income beneficiaries — such as a non-working spouse or adult children — reducing the overall family tax burden. A Family Trust Election must be lodged with the ATO for trust losses and franking credits to flow through to beneficiaries. Corporate trustees are strongly recommended because they limit liability and simplify succession.

What Tax Registrations Does a New Melbourne Business Need?

Every new business needs an Australian Business Number (ABN) — used on all invoices and to claim input tax credits. A Tax File Number (TFN) is required for the business entity to lodge tax returns. Businesses with annual turnover above $75,000 must register for GST and lodge a BAS. If you will employ staff, you need to register as an employer with the ATO for PAYG withholding and comply with Single Touch Payroll (STP) reporting from the first pay run. Victorian businesses with total Australian wages above $900,000 are also subject to payroll tax.

What Business Licences and Registrations Might a Melbourne Business Need?

Beyond the ATO registrations, many Melbourne businesses require industry-specific licences or registrations. Construction businesses must register with the Victorian Building Authority (VBA). Food businesses require a council food premises registration. Businesses trading under a name other than the company name must register a business name with ASIC ($44 per year for one year, $102 for three years). Regulated industries — financial services, real estate, health professions — have additional licensing requirements. We identify what applies to your specific business type and ensure all registrations are in place before you trade.