Starting a business has its degree of difficulty, especially when it comes to finances and taxes. But these two aspects of the business are very important that must not be overlooked. In Australia, businesses need to register or apply their business for an ABN or the Australian Business Number.
It is generally the first step in legitimizing your brand or business by making it legally recognized by the Australian federal government. Without ABN, you’re not legally allowed to do business transactions.
Most young entrepreneurs and businessmen often find themselves confused about the importance of applying for an ABN. It is an identification number composed of 11-digit unique numbers designated by the Australian federal government. Its other purpose is to publicly inform everyone that your business is legally operating under the rule of law.
Many businessmen are still not that familiar with ABN since it was just introduced in 2000. Aside from legalization and identification, ABN’s purpose is to provide an all-in-one ID number that they can use for all government agencies and departments for all Australian businessmen. But, it’s completely different from the tax file number.
So, why is it so important that businesses need to register their company or brand to ABN? To discuss further, here are some valid points to convince you to register your business to ABN.
Makes Your Company Eligible for Benefits from The Government
Registering your business to ABN by yourself or by a trustworthy Business Registration Service is very necessary as your company can benefit from the government’s protection, incentives, and loans. Without it, you are just putting your company in a difficult situation. In case of recession, your company can easily apply for a government loan to cover up the losses and slowly recover from the crisis.
It Makes Your Company Reputable
Business registration is very important these days to be recognized legally, not just by the government but by the public. It will give your company a name and brand a reputation that propagates trust among your consumers and target market. In short, it creates your business a trusted brand name. You are fully aware of how valuable a brand name is. It is the key to gain the trust of your investors and customers. It’s easier for your business to close deals, reach partnerships and invite more investors knowing that they are confident that your business abides by the law.
Easier to Attract Good Candidate Employees
Workers who have good credentials only want to work with reputable companies. It means that they trust companies they can share their skills with that are registered by the government. Nobody wants to showcase their skills and talent to a shady company that is unregistered. As a business owner, you will most likely end up selecting and hiring employees who also have subpar qualifications.
It Helps Your Business for Legal Actions
If your business is a corporation or a partnership, you must register your business beforehand. It’s because, without registration, you are not allowed to file a lawsuit against your partners in the business in case of any legal problems with them. Registering your business through a Business Registration Service court of law only recognizes businesses that are declared legally through business registration.
Now that you’re aware of the importance of registering your business, it’s time for you to compile all the needed documents! Besides, there are a lot of third-party companies out there that offer business registration service.
