Starting a Small Business in Canberra: The Steps

Canberra's economy is shaped heavily by the public sector, with public administration alongside health care, education and professional, scientific and technical services among the main areas of activity. That mix influences the kinds of small businesses that start up here, from IT and cyber consultancies servicing federal departments through to trades, hospitality and professional services. Whatever the venture, the set-up steps are broadly the same. This is a general explainer of the process, not financial, tax or legal advice; always confirm current rules and figures with the official sources linked below.

Step 1: Choose a business structure

The structure you choose affects your tax, your reporting, your personal liability and your costs. The four most common options in Australia are sole trader, partnership, company and trust. A sole trader is the simplest and cheapest to run, but you and the business are legally the same person. A company is a separate legal entity registered with the Australian Securities and Investments Commission (ASIC) and carries more obligations and cost. Partnerships and trusts sit in between and have their own rules.

The Australian Government's business.gov.au sets out how each structure works and what it means for tax and liability, and asic.gov.au explains company obligations. Free, independent guidance on the money side is available through moneysmart.gov.au. Changing your structure later can be involved, so it is worth understanding the options before you start.

Step 2: Register your business (ABN, business name and tax)

The core federal registrations are handled in one place through the Australian Government's Business Registration Service. There you can apply for an Australian Business Number (ABN), register a business name, and set up tax registrations such as Goods and Services Tax (GST) and Pay As You Go (PAYG) withholding at the same time.

An ABN is free to apply for. Some applications are issued straight away, while others need to be reviewed and can take longer, so it pays to start early; the Business Registration Service sets out the current process and timing. A business name is registered through ASIC (there is a fee), and you do not need to register a name if you trade under your own name as a sole trader. The ASIC business names pages explain the rules and fees. Registering a business name is not the same as owning a trademark or securing a matching web domain.

Whether you must register for GST depends on your turnover and the type of business; the Australian Taxation Office (ATO) sets out the thresholds and which registrations you need.

Step 3: Identify your licences and permits

Beyond the federal registrations, many businesses need licences, permits or approvals, and these can come from all three levels of government. In the ACT, business licensing, registrations and many permits are administered through Access Canberra. Examples can include food business registration, liquor licensing, building and trade occupational licences, and signage or planning approvals.

The official tool to work out exactly what applies is the Australian Business Licence and Information Service, ABLIS. You enter your business type and location and it lists the relevant licences and permits across Commonwealth, ACT and local requirements. The ACT Government's own start a business in Canberra pages also walk through registration locally.

Step 4: Understand your tax basics

Your tax obligations flow from your structure and registrations. Sole traders report business income in their individual tax return, while companies lodge their own returns and pay company tax. If you are registered for GST you generally lodge a Business Activity Statement (BAS), and if you employ staff you take on PAYG withholding and superannuation responsibilities. Keeping good records from day one makes all of this easier.

The ATO is the authority on tax for businesses, including what to register for, how and when to report, and your obligations as an employer. Start with the ATO's guidance on business registrations. For the cash-flow and budgeting side, moneysmart.gov.au offers free tools.

Step 5: Know where to get help

business.gov.au is the central federal hub for planning, registering and running a business, with checklists, templates and a grants and programs finder. The ACT Government and Access Canberra cover territory-specific requirements and local support. An accountant, bookkeeper or solicitor can provide tailored advice on structure, tax and contracts.

A few general points worth keeping in mind in the ACT. Land here is leasehold rather than freehold, so if your business involves premises, the permitted use under the Crown lease and any planning approvals matter; lease and title information runs through ACT planning authorities and Access Canberra. If you lease commercial space, separate rules apply, and current rates, charges and any duties are published by the ACT Revenue Office. Because rules, thresholds and fees change, treat this article as a map of the process and verify the specifics on each official site before you act.

Sources: business.gov.au, Business Registration Service, asic.gov.au, ato.gov.au, ABLIS, accesscanberra.act.gov.au, act.gov.au, moneysmart.gov.au, revenue.act.gov.au.

This article was compiled by AI and screened before publishing. See our editorial standards.