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  • #979569
    amraj1982
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    Hi,
    I have been searching quite a lot in this forum today and I couldnt find a thread which mentions the initial start up costs altogether for a trading company, though I found many many many valuable information from the experienced and the expert forumers. Many thanks for that to all the people who have shared the experience.
    Basically, I would like to start this thread for the new comers, who are not in Australia, but would like to start a business on their own here.
    Considering the below facts:
    1. A good business plan (Established and found working in some other countries) or opening the Branch in Australia.
    2. No workers / employees in Australia, but a number of suppliers only.
    3. Office address will be through a Virtual office with a toll free number and answering from any country he is in.
    4. Got a local supplier for the so called “Product” in the business. (As it is only one product – supply for construction Industry purpose), and transportation agents, who will collect the products from my supplier and transport to my customer.
    5. Advertisements / online marketing / websites everything under control.
    6. Sole Ownership – someone who is a citizen or permanent resident but residing outside Australia for business reasons.
    7. Bank Accounts – could be set up with NAB or so online.
    8. Payments will be done online or through bank transfers.

    So in short, if all the above is in hand, what would be the cost for getting a trade name secured, registration, until I get the Trade license in hand so that I can start my operation in Australia.
    As most of the threads mentions about the expenses like office and accounts and taxes and employees and office furnitures and advertisements and so and so. I just need to know how much altogether it will cost me to start my operation . working in Australia.
    Awaiting for all valued answers. Thanks a lot for your time and guidance.

    Rj

    #1115289
    kathiemt
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    RJ, are you living here in Australia or looking to set up a business here in Australia? I wasn’t clear as you mentioned people outside of Australia. But I do believe you are outside Australia.

    There are rules here about owning and operating a business in this country and I expect that the majority of people on this forum all live here and have, for the most part, already started their businesses, so that’s probably why these things haven’t been discussed. If I’m correct, and you are outside of Australia, there are other places you probably need to be visiting to get the information you want.

    Austrade is a govt website which is about doing business with other countries. They may well be in a position to advise you on the things you need to know. And it’s possible you may need to contact the trade association relevant to whatever your trade will be to find out about govt legislations here as well.

    It was a long time ago that I opened a bank account for my business here but I know I had to produce the relevant paperwork showing I owned a business name before I could open a bank account. And in those days you had to live here to set up a business. I do not know what the rules and regulations are today, especially with respect to getting someone else to open an account for you.

    I can tell you, that with respect to a virtual office, those providing those services will need verification of your legitimacy and business operations before they can provide a service for you. With so many scams and con artists out there on the web it’s important that we protect our livelihoods. And I would be extremely wary of opening a bank account for someone else. Perhaps seeking out a bank that has overseas branches is the best option, i.e. Citibank, HSBC are just two that have branches here in Australia but I’m sure there will be others.

    I manage a team of Virtual Assistants, some of which do provide virtual offices for business clients and, as a result, I do get enquiries from time to time, from people in other countries who want a presence in our country for their businesses. Sometimes we can verify the person and the business and provide the service but sometimes we can’t and therefore we won’t assist. However I often refer them to Austrade and also a service called MBE (MailBoxes Etc) that has branches around our country who are set up to receive mail on behalf of clients and do whatever is needed. I’m sure they’ve got processes in place to assist those from outside our country needing assistance.

    We do have some legal people on this forum and perhaps one of them might be able to give you some advice or point you to suitable services to assist you further.

    #1115290
    JacquiPryor
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    Hi Raj,

    Unfortunately, there’s not going to be an ‘exact’ answer to your question. Every business is different, and some of the things you list will be supplied by a third party and every third party will charge its own fees.

    Obviously taxes, advertising, office supplies and equipment etc all need factoring in to your start up costs, and again these will always vary. (Taxes will ultimately depend on how much you make and spend in your business). Depending on the exact nature of your product then you may require particular permits that could cost money, or you might not require any.

    The initial business name registration for a sole trader will only cost AU$70.00 (for three years) but this is just a tiny part of what is needed to properly set up.

    If you are running a fairly standard business that needs setting up from the very beginning, with no special requirements/permits etc, I would suggest you need no less than $5000 – $10000 just for the basics – registration of business or company, office supplies, computer/equipment, furniture, website, insurance etc. Some people will come along and say they have done it for less than this and some will say it cost them more – it really will depend on the type of business you wish to run, how you wish to promote it and even how much your product may cost you upfront before customers buy the product etc.

    #1115291
    Anonymous
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    Hi amraj1982,

    Welcome to Flying Solo.

    As Kathie mentioned, this is a forum for small business owners who are based in Australia. Could you please confirm for us whether you are based here or overseas?

    A great way to do that and to help us get to know you a bit better is to by posting in the introductions thread telling us a bit more about yourself, and by filling in your profile in ‘Control panel’, including details of which state or suburb of Australia you’re based in.

    Thank you.

    By the way, I’ve merged the responses to your two threads as we don’t allow duplicate posts in this forum.

    I hope your new business venture goes well.

    Best wishes,
    Jayne

    #1115292
    amraj1982
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    Hi Jayne,
    I have updated my details in the control panel.
    Thanks Kathie and JP too :)

    Somehow I believe I didn’t convey my question correctly.

    I am a Permanent resident in Australia. My wife and 1 yr old kid is still living in Melbourne. Now I only visit every 6-8 months as my main business and work is based in Dubai, UAE. Since I am not required to be present here in Dubai, I wish to spend my time in MEL with my family. As I understand the constructions are booming in Perth, I might be setting up the operations based in WA.

    Hence I meant that, by this thread I would like to share all the information to those people who are PR’s or citizens or Australia, but working outside and will be returning back to the country.

    Also I would like to point out that Offices, employees, furniture’s advertisements, websites etc etc etc are all in control and I am aware of the costs. But I only need to know how much to set up the license and to be ready to start the business operations. That’s from the Govt side, will there be any additional charges apart from the Trade name – 70 $ for 3 yrs ? In the website mentioned above, I found a lot of registrations to be done – like ABN, FBT, GST, PAYG, TFN, Payroll Tax etc, is there any charges to be paid while registering ? Are all these mandatory, I guess GST, ABN and TFN are mandatory, but not sure if others are and the costs involved.

    Also I would like to point out that there would be any manufacturing involved. Only buying and selling. I would have accounts and everything maintained online with all proper billings recorded for taxations.

    So apart from office supplies, computer/equipment, furniture, website, insurance, employee hiring, office room rents etc. Another question will be if there is no manufacturing involved, do I require insurance, as for my client, I will be procuring from somewhere and selling it to them, so I suppose the product will be covered in insurance from my supplier, right ? Just a thought..!

    Here in Dubai, while opening a company, there was 100’s of paper work involved, finding a local sponsor as we dont get 100% ownership of the company and its mandatory that I need to employee one Arab local in the company as a Public relations officer, (but there are ways to go around the situation as well).

    So I would like to know if there are hidden things like that as well. Is it mandatory to have an accountant / auditor, but I guess that would be during year end while doing tax’s ?

    I really appreciate all the support given by sharing your views and ideas, kindly bare with me for these questions as I do not have any other source to know it at this time.

    Thanks in advance .. Looking forward in seeing the replies. :)

    #1115293
    kathiemt
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    Thanks for explaining. I highly recommend you get an Accountant before you start anything. There are accountants that hang around this forum and are listed in the business directory. From what I can gather this won’t be a simple business but has lots of components to it, so it is really important that you start off with the right people assisting you.

    There is no charge to register for ABNs, or GST – the rest is all part of the tax thing for running a business. You will need someone who understands all that side of thing so you might need to engage a bookkeeper too.

    If you register as a company then yes, you may need an auditor too, however the Accountant really is your first important thing to secure so that the structure and set up of your business is done correctly.

    #1115294
    Kennethti
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    I would suggest to you that you engage an accountant to assist you in this matter – it sounds like you need it, given the millions of questions that you have!

    #1115295
    JacquiPryor
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    Hi – thanks for clarifying further :)

    That’s from the Govt side, will there be any additional charges apart from the Trade name – 70 $ for 3 yrs ? In the website mentioned above, I found a lot of registrations to be done – like ABN, FBT, GST, PAYG, TFN, Payroll Tax etc, is there any charges to be paid while registering ? Are all these mandatory, I guess GST, ABN and TFN are mandatory, but not sure if others are and the costs involved.

    If you wish to operate as a sole trader then it is $70 for 3 years (official fee) to register your business name. However, you might choose a different structure that’s better for you, your family and any assets. (Operating as a sole trader means you are the legal entity with the business so there’s no real asset protection or liability reduction etc) – so, you could choose to go with a company, or even a trust with corporate trustee. I would encourage you to have an accountant or corporate services company do this for you. The fees could range any where from around $700 – $2500 (give or take) depending on the structure and service provider. A company would have annual fees, and a trust may too but I’m not familiar enough to advise.

    There is no fee to actually register for and obtain ABN, TFN, GST, PAYG etc.. registration for these things is free, but it’s important to understand what each one is, when & why you should have them. (GST registration is only required once the business or company turnover hits 75K for example… and, when you do register, then the actual GST ‘cost’ that you are paying will be entirely dependent on level of sales and expenses for the month or quarter etc so no way to ‘guess’ what that would be).

    So – an ABN is mandatory to operate a business in Australia… if you go with sole trader under a business name, then the ABN is yours personally as you are the entity – and, you’ll need this in order to register the business name. You’ll need a TFN (Tax File Number), which you may already have? If you decide on a company structure then the company could get its own TFN. PAYG registration will be required if you are withholding taxes from employee wages and need to report these etc. You can find more about these sorts of registrations here.

    You are not obligated to hire an accountant, and you are legally allowed to handle your own tax matters but I wouldn’t suggest it! Tax law is obviously complicated, so well worth engaging an accountant to attend to these things (in my opinion).

    I would also encourage you to obtain insurance, even if you are only the seller and not the manufacture. This link might help answer some questions on this – in short, a customer may have the right to take action against you for selling them a faulty product, dangerous product etc etc – even if the fault is caused by the manufacturer, so, on the off chance this was to happen, it would be good to have the right insurance. Insurances will of course range in price depending on level covered/broker or company used etc.

    I hope the above helps. All the best :)

    #1115296
    amraj1982
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    JacquiPryor, post: 129393 wrote:
    Hi – thanks for clarifying further :)

    If you wish to operate as a sole trader then it is $70 for 3 years (official fee) to register your business name. However, you might choose a different structure that’s better for you, your family and any assets. (Operating as a sole trader means you are the legal entity with the business so there’s no real asset protection or liability reduction etc) – so, you could choose to go with a company, or even a trust with corporate trustee. I would encourage you to have an accountant or corporate services company do this for you. The fees could range any where from around $700 – $2500 (give or take) depending on the structure and service provider. A company would have annual fees, and a trust may too but I’m not familiar enough to advise.

    I hope the above helps. All the best :)

    Hi JP,
    Thanks for the clarification. I had visited the website in your signature, which mentions a lot of small small charges – and also 905$ http://mmwtrademarks.com.au/more-information/fees-to-register-trademarks/
    So all in all, it might add up to a 1000$ for the startup and as you mentioned, 700-2500$ depending on the structure. But this consultancy service provider company fees – is that monthly or annual ? or just the initial setup could be done using them ? Is it like we give the documents and they complete the whole procedure of licensing and registration and ready to us package.

    #1115297
    JacquiPryor
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    Hi Again :)

    Just to clarify further – I offer trademark registration services and whilst I encourage people to register their trademarks this is not an actual legal requirement. So, if you were to register a trademark this could cost extra but you don’t have to do it as a part of the start-up phase. If you have a distinctive name for your business, that distinguishes your product/services from others in your industry this would be your ‘trademark’. A registered trademark is essentially a protected name. (registration of a business or company name does not ‘protect’ that name and give you any actual rights to use it) – so, as the owner of a registered trademark you would be given the right to ues the name for the product/service you nominate, license the use to others if you wish and also take action against others if they are found to be infringing your rights. As noted – it’s something I recommend but is not a requirement when starting a business in Australia.

    . But this consultancy service provider company fees – is that monthly or annual ? or just the initial setup could be done using them ?

    The range I mentioned ($700 – $2500) would be initial set up, including official fees + service provider fees. Again, the annual fee would be dependent on the type of structure you go with; Business Name as sole trader = $70 each 3 years; Pty Ltd Company – approx $230 per year, and, I’m not sure about a trust set up.

    If you know the sort of structure that is best for you, then a company such as Shelcom Corporate Services (who are members here) is a cost effective way to register (they won’t advise you on the right structure but can take care of the registration if you know what you are after).

    As Kenneth mentioned, it may be best that you speak with an accountant on some of these matters. They’ll be able to advise on the best structure for your business, and, most likely will be able to take care of the set up of the business structure/registration for you. Every accountant will have their own fees of course – but, you might be able to find one for an hour consultation for a couple of hundred dollars and once you have the advise be able to do some of the ‘work’ yourself to save on their fees to do it for you.

    #1115298
    amraj1982
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    JacquiPryor, post: 129443 wrote:
    Hi Again :)

    Just to clarify further – I offer trademark registration services and whilst I encourage people to register their trademarks this is not an actual legal requirement. So, if you were to register a trademark this could cost extra but you don’t have to do it as a part of the start-up phase. If you have a distinctive name for your business, that distinguishes your product/services from others in your industry this would be your ‘trademark’. A registered trademark is essentially a protected name. (registration of a business or company name does not ‘protect’ that name and give you any actual rights to use it) – so, as the owner of a registered trademark you would be given the right to ues the name for the product/service you nominate, license the use to others if you wish and also take action against others if they are found to be infringing your rights. As noted – it’s something I recommend but is not a requirement when starting a business in Australia.

    The range I mentioned ($700 – $2500) would be initial set up, including official fees + service provider fees. Again, the annual fee would be dependent on the type of structure you go with; Business Name as sole trader = $70 each 3 years; Pty Ltd Company – approx $230 per year, and, I’m not sure about a trust set up.

    If you know the sort of structure that is best for you, then a company such as Shelcom Corporate Services (who are members here) is a cost effective way to register (they won’t advise you on the right structure but can take care of the registration if you know what you are after).

    As Kenneth mentioned, it may be best that you speak with an accountant on some of these matters. They’ll be able to advise on the best structure for your business, and, most likely will be able to take care of the set up of the business structure/registration for you. Every accountant will have their own fees of course – but, you might be able to find one for an hour consultation for a couple of hundred dollars and once you have the advise be able to do some of the ‘work’ yourself to save on their fees to do it for you.

    Thank you soo much JacquiPryor.. That was all the information I need. I really appreciate the support al have given in this forum. Its actually very hard to get the info without being present there in OZ. But through this forum it was just a piece of cake :)Thanks to all once again. Hope all the readers in the forum will also benefit from all the advices given to me in this thread. :)
    Chaos.
    Rj

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