But if you’re getting ready to introduce a different segment of products that is totally different from the existing company’s business nature, it is better to register a new company and get a new ABN for that product.
As the owner of your own software development company you have run that business successfully for four years in the business of selling POS system software (Company A). Over the past year, you’ve been working on writing HR Payroll software, which is still in its infancy. Today the HR Payroll software is ready to launch and it would be in a different industry compared to POS system software, and at this point, you may want to set up an entirely separate company which will then have its own ABN number for running the business centered around HR Payroll software (Company B)
Reasons for Company B and obtaining a new ABN are discussed concerning asset protection and administrative unclarity. By incorporating Company B to operate a new HR Payroll software business would provide asset protection due to the separation between Company A and Company B since they are operated as separate legal entities. The customers of each company will most likely differ and if a customer sues Company B, this claim or liability will not then take up the assets of Company A or its intellectual property.
For example, if two both POS system software and HR payroll software are operated under a single company structure then any claims would give the other party access to all of the assets and intellectual capital of each business asset as they are operating under one legal entity.
An ACN is a nine-digit number that is issued only to companies. The ATO issues ABNs. On the other hand, ACNs are issued by the Australian Securities and Investments Commission (ASIC).
It is important to note that not all businesses are companies. Sometimes, an individual may say they run a ‘company’ when they mean that they run a sole trader business. A company is a particular legal entity and business structure. Unlike other business entities like sole traders and trusts, ASIC strictly regulates companies. Accordingly, if directors mismanage the company, they may be subject to criminal and civil penalties.
Keep in mind, not all businesses are companies. Sometimes, a person might say they own a ‘business’ but what they really mean that they have their own solo trade. A company is a special type of legal body and business setup. Companies are more strictly controlled by ASIC than other types of businesses like individual traders or trust groups. So, if those in charge of a company don’t handle it correctly, they could face legal and civil punishments.
A company that does business will have both an ABN and an ACN. Once a company is created, it must sign up for an ABN before it begins doing business. If the company is just for the purpose for holding assets and is not doing business, it might not need an ABN. Usually, the ACN is used as the bottom number for the ABN. This means they will be the same, but the ABN will start with two extra numbers.
You can search for a company’s ACN on the Australian Business Register or ASIC Connect. To get more recent details about the company, you can buy a copy of the company’s current information report. The extract will contain the following details:
Register business name together: If you need to register both your ABN and business name, do it in one step using the Business Registration Service.
Attach multiple names to one ABN: You can use the same ABN for different trading names, saving you the hassle of getting multiple ABNs.
Consequences of not updating details: Failure to update your ABN details within 28 days of a change can result in penalties from the ABR. These penalties can increase depending on the length of the delay.
Cancelling your ABN: Before canceling your ABN, make sure you’ve paid all taxes and cleared off all debts to creditors. The ABR provides guidance and advice on how to cancel your ABN on their website.
Checking cancellation status: You can check if your ABN was canceled by using the online services of the Australian Business Register or calling them directly.
By knowing these duties and making sure to keep your ABN information correct, you can prevent penalties and make sure your business runs smoothly.
Once you start a company, the ACN will be given to you automatically. You can pick to start a business by yourself using ASIC or get help from a company secretary.
Check your chosen company name is available to use by looking it up in the register. Make sure your chosen business name doesn’t match any current ones or trademarks. If there are, you may not be able to operate your business freely using that name. You can look for trade marks on IP Australia’s website.
You also need to read and completely understand your responsibilities as a person in charge of a business. An officeholder in a company is someone like directors and secretaries. Also, make sure other company officeholders know the responsibilities and get their consent and agreement to be an officeholder before starting the business.
Starting a business in Australia? You might find getting to know about ABNs and ACNs a bit confusing at the start. Don’t worry, though! If you work alone or run a big company, FastLane Group‘s professional corporate service can help you easily and quickly.
Working Visa HKWe’ll help you handle all the paperwork, and ensure your registration sails through, so you can focus on what matters most: launching your business success story.
When businesses are incorporated in Malaysia they receive a distinct registration number from the Companies Commission of Malaysia (SSM). This number follows a company throughout its entire existence and is necessary for all official matters and transactions. So let’s take a closer look at this registration number.
The business registration number comprises a distinct set of numbers used to identify a company, prominently featured on its certificate of incorporation. This number serves as verification for various company-related affairs. It’s acquired through the registration process with the Companies Commission of Malaysia (known as CCM or SSM in Malay), validating the company’s legal registration in Malaysia.
After you choose an entity, the next step is choosing a company name. The name needs to be checked by the SSM-if it is already in use or too similar to an existing one, then you have to come up with something else. After the initial verification, you can apply for reservation of the name with the SSM. After approval, the name will be reserved for your use.
When submitted, the suitable authorities will examine the application. After approval the SSM will send an email to the address you provided containing your registration date and business registration number. Then the Certificate of Incorporation (Section 17) will be available for sale.
Starting from 11 October 2019, a new number format for the business registration was applied. This new format is applicable to business entities registering with SSM.
Hong Kong has a highly active economy and is becoming an incubator for start-ups. As such, it’s increasingly easy to set up a HK limited company in Hong Kong. One of the most beautiful tourist destinations, Hong Kong is also a shopper’s paradise. For reasons like this, Hong Kong is a great place to start a business and incorporate private limited companies. Today, many investors dream of going into business in Hong Kong. But it isn’t as easy as it sounds to start a Hong Kong business. Question is how do you start a business in Hong Kong? Hong Kong contains a lot of competition; if your business plan is to work, it has got to be good. The advantage of starting a business here is that it is the 5th highest ranked ecosystem in the world, its GDP is high as well. FastLane Group provides complete services on how to start a business in Hong Kong, all from the ease and comfort of your home.
Hong Kong has a highly active economy and is becoming an incubator for start-ups. As such, it’s increasingly easy to set up a HK limited company in Hong Kong. One of the most beautiful tourist destinations, Hong Kong is also a shopper’s paradise. For reasons like this, Hong Kong is a great place to start a business and incorporate private limited companies. Today, many investors dream of going into business in Hong Kong. But it isn’t as easy as it sounds to start a Hong Kong business. Question is how do you start a business in Hong Kong? Hong Kong contains a lot of competition; if your business plan is to work, it has got to be good. The advantage of starting a business here is that it is the 5th highest ranked ecosystem in the world, its GDP is high as well. FastLane Group provides complete services on how to start a business in Hong Kong, all from the ease and comfort of your home.
Hong Kong is located between zones of Asia which makes it a perfect country in preparing trade and setting up Hong Kong limited company. The significance of market access to the largest populated country in China cannot be overemphasized. The existence of these low tax cells, safe investment environment with a stable and sound economic political, the active government efforts to attract private capital flow into this region all continue to be factors which encourage investors from around the world to establish offices here.