Before we step into how to register for an Australian Business Number (ANB) or an Australian Company Number (ACN), lets take a look at how they differ from each other.
ABN:
An ABN is made up of eleven digits secured by Australian businesses. It acts as an identification card for businesses regardless of the size, be it a sole-trader, partnership, company, or corporation, you need to apply for one. ABNs are issued by the ATO and is a requirement when a business registers for Goods and Services Tax (GST) and Payroll Tax. ABNs allows businesses to operate legitimately while dealing with other businesses.
ACN:
An ACN acts as an Identification number for Australian companies and is made of nine-digit numbers. ACNs are provided for companies only because of its difference with other types of businesses. Put differently, a Company is recognized legally independent from its owners and is managed by a group of people. A company does not affect its shareholders or directors if it runs into a financial hardship. ACNs are issued by Australian Securities and Investments Commissions (ASIC) who are also responsible for regulating companies. It is important to know that any company with commercial transactions need to acquire both ABN and ACN to operate legitimately.
How to apply for an ABN
If you intend to apply for an ABN, you may apply online and free of charge. You may also refer to an expert to make sure you are doing it correctly. The general requirements for registering an ABN includes:
- Details of the associates
- Contact details
- Business structure
- Business activity
- Locations
- A legal business name
- Tax File Number of the associates
How to register for an ACN
Before applying for an ACN, you need to register your company with ASIC first. You can either apply online or seek assistance from an expert. The general requirements for an ACN includes:
- Establishing a company as limited or unlimited
- Choose a company name such as Propriety Limited or Pty Ltd
- Location of registration
- Business Address
- Detail of company associates, such as directors
- Set out a share structure
- Shareholder details
While apply online, you need to complete Form 201 via the ASIC website. You will receive an ACN once the application is approved. If you are required to apply for an ABN too, you can do this once you receive your ACN.
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