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Examples of business registrations

If you're in business you may need to register for certain tax obligations and entitlements.

Last updated 31 October 2021

The following examples show the types of registrations a business may need:

Start of example

Example: Registration for a sole trader

Nguyen is a qualified electrician. He starts his own part-time business, doing jobs on customer premises and at his workshop. Some of his business details are:

  • Business structure: sole trader
  • Expected turnover: $40,000 per year
  • Staff: works alone.
End of example

Initial business registrations for Nguyen

ABN, yes.

ABN

Nguyen registers for his ABN online at the Australian Business RegisterExternal Link (ABR). He can easily do his business name registration at the same time.

TFN, no.

TFN

As a sole trader, Nguyen uses his individual TFN. He doesn't need a separate TFN for his business.

ABN, yes.

Online services

By registering for a personal myGov account and linking it to the ATO, Nguyen can do tax transactions for his business online. He can do this using our Online services for individuals and sole traders.

TFN, no.

GST

The expected GST turnover from his business is less than $75,000 so Nguyen doesn't have to register for GST. He decides not to register, which means he can't charge GST or claim GST credits. He can register later if he needs to.

ABN, yes.

PAYG instalments

Nguyen can voluntarily enter into pay as you go (PAYG) instalments to start paying his income tax by instalments throughout the year. This will help him avoid having to pay a big tax bill after he lodges his first tax return.

TFN, no.

PAYG withholding

Nguyen plans to work alone, with no employees. He can register later if he needs to.

TFN, no.

Fringe benefits tax

Nguyen has no employees.

ABN, yes.

Business name

Nguyen can register his business name 'Nguyen's All Electrical' on the Australian Business RegisterExternal Link when he registers for an ABN.

Later, Nguyen decides to put more time into his business. He expects his business sales to increase to $90,000 per year.

Adding GST registration

ABN, yes.

GST

Nguyen's projected GST turnover is now $75,000 or more, so he must register for GST within 21 days of when he starts putting more time into his business. Nguyen will then charge GST on his sales, and will be entitled to claim GST credits for any business purchases that include GST.

 

Example: Registration for a company

Renee starts her own clothing shop. At the same time she creates a company, Renee Fashions Pty Ltd, through which she runs the business. Some of her business details are:

  • Business structure: company
  • Expected turnover: $190,000 per year
  • Staff: three (including Renee).
End of example

Business registrations for Renee Fashions Pty Ltd

ABN, yes.

Director ID

As the director of the company, Renee will need to verify her identity and apply for a director identification number (director ID) from Australian Business Registry ServicesExternal Link.

ABN, yes.

ACN

Before doing her tax registrations, Renee must register her company with Australian Securities & Investments CommissionExternal Link(ASIC) and obtain an Australian company number.

ABN, yes.

ABN

The company needs an ABN as it must register for GST. Renee does her ABN registration online at the Australian Business RegisterExternal Link (ABR). If she wants to, Renee can also register for her business name and other tax registrations at the same time.

ABN, yes.

TFN

The company needs a separate TFN.

ABN, yes.

Secure online authentication

To do the company's tax transactions online, Renee needs a secure way to verify her business identity online such as myGovID and Relationship Authorisation Manager (RAM)

ABN, yes.

Online services

Renee can do tax transactions for her business online using online services.

ABN, yes.

GST

The company must register for GST because its expected annual GST turnover is more than $75,000.

ABN, yes.

PAYG instalments

Renee can voluntarily enter into the pay as you go (PAYG) instalments system to start paying her income tax by instalments throughout the year. This will help her avoid having to pay a big tax bill after she lodges her first tax return.

ABN, yes.

PAYG withholding

As an employer, Renee Fashions Pty Ltd will need to withhold tax from wages and must register for PAYG withholding.

ABN, yes.

Fringe benefits tax

Renee plans to have private use of a company car, which is a fringe benefit.

ABN, yes.

Business name

Renee can register the company's business name on the Australian Business RegisterExternal Link when she registers it for an ABN.

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