The cost of starting a business in Australia can vary due to different factors such as the type of business that you are starting as well as its structure. The costs may start from AUD400 to thousands of dollars.
In addition, the entire process of starting a business depends on the legal entity that you want to register.
The similarity in all these entities is the fact that you need to choose the structure of your business, apply for business registration, and then get an Australian Business Number (ABN).
You also need to make sure that you register for the right taxes and follow these simple tips to get started. This is important in ensuring that your business succeeds.
On the other hand, you might want to take over a business that already exists or even buy a franchise.
The costs involved in this vary greatly depending on the business type and its size. That being said, the costs involved when starting a business in Australia can be categorized into two – common and legal costs.
Common Costs
Business Operation Tools
Successful businesses are using innovative tools to automate and streamline their daily operations. The cost of these tools varies depending on the tasks that they perform as well as their subscription rates.
For instance, running a business means that at one point or another you will need to create invoices. You can use an automated tool to create invoice in Australia and eliminate any errors, especially financial errors that might cost your business a lot of money.
Rent
You also need to consider rent when starting a business in Australia. This will depend on the location of your office as well as its size.
Research has stated that the average cost of office rentals in Australia ranges from about $350 per square meter every year in the Gold Coast to about $1000 per square meter in Sydney CBD.
Salaries
One of the most important costs to consider when starting a business is salaries. In Australia, the minimum wage is about $750 per week (approximately $19 per hour).
That notwithstanding, you might be forced to pay more than this depending on the tasks and the roles that you are hiring for. This will help you attract the right talent for your business.
Insurance
Some people might think that their businesses’ needs for protection are low. However, it is important to pay for business insurance. You might need to think about some common types of insurance for businesses such as product liability insurance, public liability insurance, and professional indemnity insurance.
The cost of insurance for your business varies depending on things such as the business type, your claims history, and the insurance provider.
Professional Fees
If you want your business to be successful, you might be forced to outsource some business functions. This might be caused by several things such as costs involved with hiring a professional compared to outsourcing their work.
You might want to outsource some key business functions such as accounting, and this might not be cheap. It is, however, vital in making sure that your business is compliant and follows all the business regulations in Australia.
Legal Costs
Australian Business Number
To start operating a business in Australia, you are required to register the business to get an Australian Business Number, also known as ABN.
This is a mandatory requirement for sole traders and companies. You will not be charged to get an ABN.
Business Name
After getting the ABN, you need to get a business name for your business. This is also a requirement for every business in Australia.
You have two options when registering a name for your business. The first option is a one-year business name registration that costs about $37. The second option is a three-year business name registration that costs about $87.
Company Registration
This is a requirement for those that are starting a company. Sole traders are not required to register as a company.
The cost of registering a company varies depending on things like the structure of the company and its size. It starts at about $480 but can get to thousands of Australian dollars.
Conclusion
Looking at all these costs, you might require a minimum of about $3,000 to a maximum of $10,000 to start a business in Australia. Always make sure that you follow all regulations when starting a business anywhere in the world.
