Australia — Business: Sole Proprietorship

Key facts

• The owner of a sole proprietorship is personally liable for the business's debts and obligations.
• A sole proprietorship is not a separate entity from its owner, and the owner's personal and business assets are not separate.
• Registration with the Australian Securities and Investments Commission (ASIC) is required for businesses with a name that is not the owner's surname and initials.

Steps

1. Choose a Business Name — Ensure the name is unique and not already registered with ASIC. It's recommended to conduct a business name search on the ASIC website.
2. Register with ASIC — Submit the required application and payment online through the ASIC website. The registration process typically takes 24-48 hours.
3. Obtain an Australian Business Number (ABN) — Apply for an ABN on the Australian Taxation Office (ATO) website. This is a free service and typically takes 24-48 hours.
4. Register for Goods and Services Tax (GST) if necessary — If the business's annual turnover is expected to exceed AUD 75,000, registration for GST is required. This can be done on the ATO website.

Costs

• Business name registration (only needed if trading under a name other than your own): AUD 47 for 1 year or AUD 108 for 3 years (2026-27 ASIC fee)
• Australian Business Number (ABN): free

Timelines

• Registration with ASIC: 1-3 business days

Required documents

• Identification documents (e.g., passport, driver's license)
• Proof of address

Common mistakes

• Failing to register the business name with ASIC, leading to potential brand identity issues.
• Not registering for GST when required, resulting in penalties and additional tax liability.