Starting an auto repair workshop in Australia is an exciting experience. Whether you’re thinking of starting a car repair workshop, truck repair workshop, heavy vehicle workshop or anything in between the first thing that you will need to do is register your business.
Workshop Mate has put together the complete guide on how you can register an auto repair workshop business in Australia.
Let's get into it!
Step 1: Develop a Business Plan
The first step to registering your auto repair business is creating a well-structured business plan. Your Workshops business plan should outline your goals, intended customers, your competitors, marketing strategies and most importantly financial projections. A business plan is crucial if you need to raise funding from banks.
Step 2: Choose a Business Structure
The second step to registering your business in Australia is choosing a business structure. Choosing a business structure is vital as it will impact your workshops tax obligations and reporting requirements. The 4 business structures in Australia are:
- Sole Trader: A sole trader business structure in Australia is the simplest and most inexpensive to setup. Under this structure you will have total control.
- Partnership: The second business structure option is a partnership. This is where two or more people share control of everything including profits, liabilities and debts.
- Company: A company business structure is a completely separate legal entity. A company setup is more complex to establish and much more costly.
- Trust: The last business structure option is trustee. A trustee structure is where someone operates the business on behalf of the beneficiaries. Again, this option can be costly to start.
Step 3: Register Your Business Name
After you have chosen the business structure that your Workshop wants to use, the next step is to register your business name. Your Workshops name is the identify of your business so it is important to think of something that will stand out, relate and most importantly is available.
Steps to Register Your Business Name:
- Search for Existing Names: Before thinking of a name, use the Australian Securities and Investments Commission (ASIC) website to check what names are available for use.
- Register with ASIC: If your Workshop's name is available, you can register it online via the ASIC Portal.
Step 4: Get an Australian Business Number (ABN)
After you have registered your workshops name, the next step is to get an Australian Business Number. An ABN is a requirement to operate a business in Australia.
Steps to Apply for an ABN:
- Gather Information: To streamline the ABN process, be sure to have your personal details, business details, and tax file number (TFN) ready.
- Apply Online: Visit the Australian Business Register Website. The application process is free and takes around 20 minutes to complete on average.
Step 5: Register for Taxes
Once you have a valid ABN you will then need to register for taxes.
Common Registrations:
- Goods and Services Tax (GST): It is mandatory for all businesses that turnover $75,000 or more to have GST registration.
- Pay As You Go (PAYG) Withholding: If you have employees which your car mechanic workshop will, you must withhold tax from their wages and report it to the ATO.
- Fringe Benefits Tax (FBT): If your Workshop provides benefits to your staff like company cars, you will need to register for Fringe Benefits Tax.
Steps to Register for Taxes:
- Register for GST: You can register for GST on the Australian Taxation Office Website.
- Register for PAYG Withholding: Again, you can apply for PAYG withholding through the Australian Taxation Office Website.
- FBT Registration: For Fringe Benefits Tax, contact the ATO directly to apply.
Step 6: Obtain Necessary Licenses and Permits
To run an automotive workshop in Australia, there are some licences and permits that you need to comply with local laws. It is important to note this can vary based on state.
Common Licenses and Permits:
- Mechanic's License: In some Australian states all your mechanics will need to have specific types of licences to perform auto repair works.
- Environmental Permits: You will need an environmental permit if your workshop deals with hazardous materials.
Steps to Get Licenses and Permits:
- Check Local Requirements: Before operating, it is important that you contact your local council to determine what permits you need.
Final Word,
Registering your auto repair workshop is vital. The 6 steps presented in this piece are common licences required for operating an automotive repair workshop in Australia and can be obtained through the steps mentioned.
DISCLAIMER: The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
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About Workshop Mate,
Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.
Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.
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