Before launching a business or freelancing job in Australia, first you must obtain an Australian Business Number (ABN). Although the process is quite simple, knowing how long does it take to get an abn could help you create required strategies. This article will cover all you need to know about obtaining an ABN, including the timetables, the procedures needed, and some advise to assure a flawless application process.
What is an ABN?
An Australian company number (ABN) is an 11-digit designation that distinguishes your business to the government and the public generally. Particularly with taxes, company registration, and billing. Whether you are creating a new company, running another business, or acting as a lone trader, one of the first legal obligations you have to accomplish is obtaining an ABN.
Why do you need an ABN?
Knowing why everyone in Australian business requires an ABN allows one to grasp the chronology. These are the primary references:
- Tax Obligations: Other tax liabilities, payroll withholding, and GST registration require for ABN.
- Invoicing: Companies may be required to “no ABN withholding,” that is, withhold taxes from payments given to you without an ABN.
- Business Registration: You need an ABN whether you plan to register your company name or obtain an Australian domain name (.com.au).
How long does it take to get an ABN?
1. Immediate Approval (Online Application)
Should you apply online and your data is accurate and comprehensive, your ABN may be sent straight forwardly. At this moment, it is the most reasonable and quickest solution available. The online application process is supposed to be simple, hence, you will be immediately given an ABN right as long as your data is accurate.
2. Processing times for more complex applications
Occasionally, the Australian business register (ABR) requires a hand review of your application. This may follow from:
- Errors or missing information abound in your application.
- You have to include more supporting evidence.
- The given content runs counterintuitive.
Should your application call for more review, your ABN will arrive in 28 days. Should the necessary exact data not be immediately provided, the ABR may phone you during this interval for extra information, therefore postponing the process.
3. Factors affecting processing time
There are a number of aspects that may change the time period taken in getting an ABN:
- Accuracy of Information: Applying with all the accurate info can help things to go forward more quickly.
- Type of Business Structure: The kind of business structure may need further rigours verification since single traders can have lower processing times than companies or trusts.
- Existing Tax Obligations: Should your tax history generate questions or if you have tax obligations, your ABN acceptance could be delayed.
Step-by-step guide to applying for an ABN
1. Determine your business structure
First look at your firm structure: single trader, partnership, company, or trust. This decision will affect your application and the necessary paperwork as well.
2. Gather necessary information
Before beginning your application, review the following:
- Tax File Number (TFN)
- Specifics about your company’s daily operations
- Contact details and corporate address
- Specifics about any relationships or colleagues
3. Submit your application
Applying fastest online is via the Australian Business Register (ABR) website. The application form will help with data entering and direct you through the procedure.
4. Receive your ABN
As said earlier, if your application is straightforward, it will be promptly awarded your ABN. Get ready to wait up to 28 days for more involved applications.
5. Register for GST and other obligations
Once you have your ABN, you can register for Goods and Services Tax (GST) should your business be expected to produce $75,000 or more. If you happen to have any employees, you may also need to arrange for withholding under the Pay As You Go (PAYG) system.
Tips to ensure a smooth application process
- Double-check your information: Errors in your application could create delays; so, make sure all the information is accurate.
- Understand your business structure: Knowing the layout of your company will enable you to choose the best one for your needs.
- Apply online: This is the fastest approach and provides an immediate response on the progress of your application.
What to do if your application is denied
The ABR will explain the reason should your ABN application be declined. Usual triggers consist of data that is incomplete or falsehoods, inability to associate an arisen and existing like ABN or issues arising from verifying looks. Should this happen, you can challenge the decision or reapply using the necessary information.
Conclusion
Starting a business in Australia requires an ABN, and most candidates find the procedure quick and simple. Usually, using online and ensuring all of your data is current will result in receiving your ABN immediately. More complicated projects could need for 28 days. Understanding the procedure and what to expect will assist to guarantee a perfect and quick application experience, allowing you to focus on making sure your business is running as it should.
