Starting a business in Queensland

by John Harris Solicitors

Aspiring business people need to do their homework before registering a new business name. Before starting a business it is a good idea to understand how fair trading and licencing laws may apply to the operations of the business.

Extensive planning prior to starting up a new business is essential and it should address how the goods or services are going to be sold, how to handle customer complaints, business promotion, and compliance with advertising, packaging and labeling requirements.

A current business name registration is a legal obligation under the Business Names Act 1962, and helps new business owners establish and give credibility to their business identity. Business names can be registered at any of the Office of Fair Trading centres throughout Queensland by fax and mail.

Licensing & Structure

Occupations such as motor dealers, real estate agents, property developers and letting agents are all required by law to be licensed. There are heavy penalties that apply for individuals and businesses operating without a licence, and fair trading inspectors conduct regular compliance checks to ensure this professional standard is met. Businesses also need to check that they are selling safe products which meet Queensland and Australian mandatory standards.

One of the first things to think about when establishing a business is the best way to structure the business. The legal structure of the business affects the ownership, tax structure, risks and future of that business. The three most common legal structures are a sole trader, a partnership with another person or persons, or a proprietary limited company. Licensing, permit or registration requirements vary for each of these structures.

The licensing, permit or registration requirements for each business will vary based on factors such as the structure of the business as mentioned above, whether the business is employing staff, the location of the premises and the type of business that is being operated. It is important to ascertain the specific licensing, permit or registration requirements applicable to your business.

There are some licences that are common to many businesses. Every business operating in Australia needs to apply for an Australian Business Number (ABN). The ABN is a single identifier for any dealings with the Australian Taxation Office (ATO) and for future dealings with other departments and agencies at all levels. Business name registration is required for proof of being a business to:

  • open bank accounts
  • advertise in the Yellow Pages
  • purchase from wholesalers at wholesale prices
  • have business equipment connected
  • help establish a business' reputation and credibility.

Registration must be renewed either every year or every three years if the business still operates.

In addition to business name registration, Australian company registration provides an applicant with an Australian Company Number (ACN) which, together with the name and the status of the company, serves to identify it. Applicants may reserve a proposed company name for a period of two months. Australian Securities and Investment Commission (ASIC) is obliged to reject the proposed name if it is identical to another company or business name or if the name is of a kind, declared by regulations, to be unacceptable for registration.

Another factor to consider when starting up a business is registration of a trade mark. Registration of a trade mark gives goods or services an individual stamp and is part of a business' intellectual property. Subject to certain tests and qualifications prescribed by law, a trade mark can consist of a word, phrase, letter, number, sound, smell, shape, logo, picture, aspect of packaging or a combination of these. Before designing and applying for a trade mark on goods or services, a search in the official trade mark records must be completed to find out if the trade mark is available for use.

Web presence

An important factor to consider when setting up a business is the registration of a domain name on the internet. An internet domain name allows a business to have a professional presence on the internet. There are a number of different domain name types to choose from. Some domains have special requirements while others are less strict. The following is a brief description of the most common domain types:

com.au - Intended for Australian businesses, companies and incorporated bodies. An ACN or Australian Registered Body Number (ARBN) is required to apply (that is, you must be a company or have a registered business name). This domain is the most frequently used by Australian businesses.

net.au - Mainly intended for Australian organisations providing network connectivity or some sort of network service, but available to all Australian businesses. You need an ABN or ARBN to apply.

asn.au - For Australian associations, including incorporated bodies, political parties, trade unions, sporting and special interest clubs. Association incorporation number or ARBN required.

Record keeping

There are also a number of regulations on record keeping that businesses must abide by. Under tax law, a person carrying on a business must keep records that explain all transactions. These records include all documents that are relevant for the purpose of ascertaining income and expenditure. The person must keep their records in written English or enable the records to be readily accessible and convertible into written English. Any books of accounts, records or documents relating to the preparation of your income tax return must be retained for at least six years.

Chamber of Commerce & Industry Queensland products & services

Chamber of Commerce & Industry Queensland is the state's peak industry body, delivering a broad range of services and representing business interests to government at all levels since 1868. We are commercially-minded and expertly-qualified with consultancy services in:

  • Workplace Relations
  • Workplace Health & Safety
  • Human Resource Services
  • Business Globally & Export Assistance
  • Business Sustainability

Coupled with our consultancy services, we offer an extensive range of Business Skills education and training courses. To find out more, contact your nearest Chamber of Commerce & Industry Queensland office.

Related links

Further information

For further information about the rules, regulations and legislation that affects starting a business or when making decisions that could affect your legal rights, or if you want to discuss your personal situation confidentially, please contact Chamber of Commerce & Industry Queensland, John Harris Solicitors or your local solicitor.

The information in this article is provided by John Harris Solicitors merely as a guide and is not a full explanation of the law. Neither John Harris Solicitors nor Chamber of Commerce & Industry Queensland can take responsibility for any action readers take based on this information.