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  • #995075
    pivory08
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    Hi,

    I am Patrick. I have a chemistry degree from the University of Melbourne and specialise in perfume.

    I have a Chinese friend who wishes to start her own perfume company.
    Recently I have helped her with some of the R&D into creating their own perfume, and we have been sort of partners in the operation, giving each other advice.

    The Chinese friend is controlling most of the business, but wants help to expand into the Australian market.

    I willing to help her, however what do I need to do ?
    Do I only need an ABN, or will I need to register as a company also.

    Thank you,
    Patrick

    #1199864
    Anonymous
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    If it is just a startup with no major assets or need for limited liability, then an ABN and registered business name should be enough. You’ll have to register for GST later if planning to sell. You can change the business structure to a company at a later date, small businesses get some concessions.

    You will need to read up on labelling laws and customs because certain beauty products and perfumes attract a tariff and ingredients could be restricted.

    Work out if you want to be sole trader or partnership and a business name.

    ABN Search
    http://abr.business.gov.au/

    Business Name Search
    https://connectonline.asic.gov.au/RegistrySearch/faces/landing/bn/SearchBnRegisters.jspx?_adf.ctrl-state=17jtuwnvoz_24

    Good luck.

    #1199865
    bb1
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    Smb, post: 236654, member: 79633 wrote:
    You’ll have to register for GST later if planning to sell. .

    Actually you don’t have to register for GST until your GST turnover is $75,000 or more ($150,000 or more for non-profit organisations).

    You can register if under that, but you don’t have to.

    https://www.ato.gov.au/Business/Registration/Work-out-which-registrations-you-need/Taxation-registrations/Goods-and-Services-Tax-(GST)/

    #1199866
    pivory08
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    Smb, post: 236654, member: 79633 wrote:
    If it is just a startup with no major assets or need for limited liability, then an ABN and registered business name should be enough. You’ll have to register for GST later if planning to sell. You can change the business structure to a company at a later date, small businesses get some concessions.

    You will need to read up on labelling laws and customs because certain beauty products and perfumes attract a tariff and ingredients could be restricted.

    Work out if you want to be sole trader or partnership and a business name.

    ABN Search
    http://abr.business.gov.au/

    Business Name Search
    https://connectonline.asic.gov.au/RegistrySearch/faces/landing/bn/SearchBnRegisters.jspx?_adf.ctrl-state=17jtuwnvoz_24

    Good luck.
    Thank you !

    #1199867
    Anonymous
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    If you will be importing, it is worth registering for GST even if under $75,000 turnover and applying for deferment if importing ( ATO GST Deferment for Importers ), else you will have to pay GST on the imports on top of any applicable tariff, before delivery, unless the sender has already paid it. Also if you aren’t registered for GST then you can’t claim the credit or apply to defer the payment. Downside of deferment is you have to go to lodging a monthly BAS.

    When starting a new business, assuming you can prove to the ATO you intend to carry on a business ( several tests to help you ) then registering for GST even if under $75,000 it will help reduce some costs, even if you don’t have revenue you can claim the GST Credit (if you can prove it is a business). For a services business under the $75,000 the costs may not make it worth the hassle but if dealing with inventory it can add up quick. Submitting a BAS with GST for a startup is usually takes little time, once you know the process. By claiming the credits it will offset the GST you will need to pay the next month for the deferment.

    Not a BAS Agent or importer just as I understand it. It costs nothing to register and you can do it (have to for deferment) online. Even if you have to submit a nil return.

    #1199868
    Mischelle
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    • Total posts: 805
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    pivory08, post: 236652, member: 82664 wrote:
    Recently I have helped her with some of the R&D into creating their own perfume, and we have been sort of partners in the operation, giving each other advice.

    The Chinese friend is controlling most of the business, but wants help to expand into the Australian market.

    I willing to help her, however what do I need to do ?
    Do I only need an ABN, or will I need to register as a company also.

    Hi Patrick,

    Firstly a big welcome to you :) You have some of the information you need regarding the business side of things, but I have a few questions about the product for sale. It’s a little off topic, but it also might help you with the company/business structure if you have ownership/IP in a product.

    1 – Do you have any type of ownership in the product due to your R&D input?
    2 – If so have you discussed the percentages for you?
    3 – Do you have anything in writing regarding the future development and sales?
    4 – Are you going to be running the products sales in Australia?

    I know you are trying to help your friend, but are you simply going to be a distributor of the product or part developer of the product?

    When people go into these arrangements (especially with friends) I always say please get everything mapped out clearly to avoid any future problems, draw up an agreement that defines everything, including the percentage of sales, ownership etc.

    By doing this you and your friend have clearly defined roles and avoids confusion and allows for you both to focus on your products and what you need to do to get it selling in Australia.

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