Guide on starting a business in Australia (2025)

Anyone starting a business in Australia needs to plan thoroughly in advance to make sure the process of launching a new endeavour goes smoothly. When starting a business there’s a lot to think about, from registering your company, to setting up financial backing, getting any required licenses or permits, and getting a good understanding of your chosen niche and your core customer.

This guide walks through a starting a business in Australia checklist to give you an idea of what’s required. We’ll look at how starting your own business might work, and also touch on some best practices to help with planning - plus we introduce Wise Business as a great partner for account and card services to support international trade. More on that later.

Table of contents
Requirements to start a business in Australia? Financial and cost considerations Best practices Wise Business: Global payment solution for your business FAQs

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Requirements to start a business in Australia?

If you’re at the start of your entrepreneurship journey and wondering how to start a business in Australia, you’ll likely already realise that there’s a lot to think about.

As you plan how to start your business you’ll need to take professional advice to ensure you comply with all of the registration, taxation and legal requirements for starting a business in Australia. This guide gives some ideas to think about - but it is not a replacement for professional support, and should not be taken as advice. Let’s begin with an overview of some key planning points.

Business entity types

To trade in Australia you’ll need to register your business. There are several different entity or structure types you can choose from, depending on your requirements, preferences and future plans.

The four most common business structures in Australia are:

• Sole trader
• Company
• Partnership
• Trust

Each business entity type has its own features, advantages and drawbacks. If you're unsure which entity type might suit your needs best you can get professional advice, or you can use the Australian government business registration type tool¹ which lets you enter details about your plans to get an idea of the entity types which best match your needs. The tool takes about 10 minutes to use and can give valuable insights into the available business structure options.

Research and business planning

Market research and business planning is a key part of the process of starting a business. Entrepreneurs invest time in identifying a gap in the market, researching competitors in the same niche, and getting a solid understanding of the type of customer they may attract. This helps to form the basis of a business plan.

Business plans are important because they can form a road map to steps that have to be taken to grow and develop a company - they’re also often required by investors, when applying for start up grants, or by banks if you’re asking for a start up loan for example.

The Australian government has some useful business planning information and tools, including templates for your final plan, which can help guide this process².

Business registration and legal requirements

Australian businesses must register with ASIC - the Australian Securities and Investments Commission - to trade. The business registration process is done through the Australian Government's Business Registration Service (BRS)³. This is a combined tool which lets business owners register directly with ASIC and register for tax at the same time.

The first step to registering a business is choosing and registering a business name. There are many rules about allowable business names. You can’t usually use a name that’s already being used by another company for example, and certain words or phrases aren’t accepted as part of a business name. ASIC offers a name checking tool⁴ which allows prospective business owners to check if a name is available to them before registering.

There are 2 ways to complete the registration process - you can either contract a private service provider (PSP) to manage your application, or you can apply directly with ASIC. If you use a PSP they’ll handle the registration process for your company for a fee. To register directly the relevant application is Form 201- Application for Registration as an Australian Company.

Once your application is approved you will receive an ACN (Australian Company Number) you can use to apply for an ABN (Australian Business Number), and a certificate of registration.

Business owners can also use the same portal to register for tax, and also to complete any other license or permit applications that may be needed, based on the business type.

While this step may be a relatively involved and time consuming one, it is crucial to make sure you are able to trade legally and compliantly in Australia.

Business infrastructure

The infrastructure required for your business to be a success will depend on the type of work you’ll be doing. Naturally, the physical infrastructure, space, and equipment needed will be different if you’re launching an in person business like a store or restaurant, compared to starting an online business.

Business owners will need to think about the infrastructure that’s relevant to them whether that’s a physical or digital presence and store front, equipment, machinery, SaaS tools, technology or payment terminals for example. Upfront investment might well be needed here, which also needs to be planned into the business budget.

For businesses which need to send and receive frequent payments, including in foreign currency, business accounts from providers like Wise Business can offer some helpful tools to save time and streamline processes. With Wise you get batch payment facilities for example, which allow business owners to send up to 1,000 payments with a single spreadsheet, making supplier payments or payroll simple even when many different currencies are needed.

Financial and cost considerations when starting a business

A robust financial plan is as important as a strong business plan. There are usually costs involved with starting a business in Australia, which need to be planned for and paid for. The costs depend a lot on the type of entity - but the Australian Government has a really helpful startup cost calculator⁵ you can use to estimate the costs involved.

Upfront costs can include supplies and equipment, utilities, insurance, business name registration and solicitor fees. On top of this there may also be running costs, such as wages, rent and buying stock.

The Australian Government recommends having a plan to cover at least 6 months of running costs to see you through the initial phase of getting your business off the ground. Some entrepreneurs cover these costs with investors, loans or personal savings - there are different approaches depending on the individual preference and the business needs.

Aside from planning for expenses, business owners also need to plan their day to day financial management once the company is up and running. Alternative providers like Wise Business offers international accounts that can be used to send and receive payments in many major currencies including AUD, NZD, USD, and more. This allows businesses to easily manage finances when it comes to dealing with global customers, suppliers and even team members.

Sign up for the Wise Business account! 🚀

Best practices - To scale and grow your business

There’s not one single way to grow and scale a business - but there are some best practice ideas which are commonly used and which can be effectively adapted for many business types. Here are some popular points for growing and scaling companies in Australia.

Have professional advisors on hand

Business is complicated and as a small business owner you’ll need to know about a staggering range of things - and not just about your product and market. You’ll also need to become familiar with things like employment law, compliance, tax, accounting and legal matters.

Here, getting professional help can lighten the load. Whether that’s an accountant, a solicitor or another business advisor, having additional support to manage niche aspects of running your business can be an enormous help. It can also mitigate the risks involved with starting a business by ensuring expert advice is on hand for tricky questions.

Hold cash flow reserves

Many businesses which fail have a strong product and talented team - but fall foul of cash flow issues. The costs of starting a business can be high, and can include unexpected charges too.

Having adequate reserves of cash to see your business through a tricky patch is considered good practice, and can be essential in low margin industries where small changes to the operational environment can result in a large loss of profit in the short term. As we’ve already seen, the Australian government recommends having 6 months of cash on hand, to cover emergencies and contingencies.

👆Learn more about the costs of starting a business in Australia here.

Monitor business performance closely

Growing businesses adapt as they evolve. This is only possible with continual analysis of business performance. Business tools such as accounting and financial software often include helpful analytical features which can be helpful in examining areas where your business could increase profits or cut expenses.

Observe the market at home and abroad

As well as looking inwardly, it’s good practice to keep on top of developments in your market, watching customer and competitor behaviour to stay ahead of changes. Being aware of your local market can help a business owner optimize product offerings and marketing approach - and by observing international markets you might also find places where expansion could be a profitable route.

For businesses looking to expand overseas, a low cost multi-currency account from providers like Wise Business come with no ongoing fees to pay, and no minimum balance requirements. This presents a practical option for taking customer, supplier or even staff payments in foreign currencies.

Invest in technology

Technological changes are happening all the time and can be valuable to business owners looking for ways to become more efficient. The technology which will impact one business may not be so crucial in another, but by keeping abreast of developments, business owners can choose what tools are worth bringing into play to stay up to date and ahead of the game.

Recruit talent to help

As a business scales there’s more likelihood that additional team members will be needed to spread the load. It’s increasingly common to recruit top talent no matter where in the world the individual is based, thanks to greater connectivity and easier remote working options.

For businesses recruiting overseas, managing payroll in foreign currencies is made cheaper and easier with Wise Business - including batch payments to cover 1,000 transfers all at once.

Wise Business: Global payment solution for your business

Business with customers, contractors or suppliers in multiple countries can benefit from a Wise Business multi-currency account. As currency conversions happen at the mid-market exchange rate with no hidden markups and low transparent fees, business can now spend less on money transfers and essentially retain more of your profits.

What's more, you'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

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FAQs

1. Can I use my super to start a business?
   Whether you can use your super to start a business depends on your age and intentions. Usually you can’t access your super until age 65, but it may be possible to draw funds with a non-commutable transition to retirement income stream. Get professional advice if you’re considering this as it is complex and comes with risks.
2. How to start a business in Australia from home?
   To start a business in Australia from home you’ll need to research your options, create a business plan and find funding. You can then register your business with ASIC and start to trade. Use Australian government resources and tools, which are available online, to guide you through the process.
3. How to start a consulting business?
   If you have business experience or a niche skill you may be able to sell consultancy services online or in person. Take time to research the market and think about your business model - and remember to get professional advice where needed to register and set up your business before you trade.
4. How old do you have to be to start a business in Australia?
   There’s no legal age limit to start a business in Australia, but you may need to have parental permissions for some business activities and requirements if you’re under 18.
5. How to start a business online?
   You can register your business online with ASIC, and also complete tax registration at the same time through the Australian Government's Business Registration Service (BRS).
6. How long does it take for a new business to become profitable?
   Plan your likely income and expenditure for your business carefully, including projecting profitability which can vary a lot depending on the business type. The Australian government recommends you have at least 6 months of operating expenses available to allow you to launch without hitting cash flow difficulties.

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Sources:

1. Australian government - business registration type tool
2. Australian government - business planning
3. ASIC - register a company
4. Asic - name checking tool
5. Australian Government - startup cost calculator