Setting up a business in Melbourne takes more than just a good idea. There are registrations to complete, structures to choose, and legal steps to follow before you can start trading.
This guide explains the key steps involved in starting a business in Melbourne in 2026. It covers what an ABN is, how to register a company with ASIC, and how trust structures work. It is written in plain language so anyone can understand it. Whether you are just starting out or restructuring an existing business, this guide gives you a clear picture of what is involved.
Why Your Business Structure Matters
Before you register anything, you need to choose a business structure. This is one of the most important decisions you will make as a business owner.
Your structure determines:
- Who is legally responsible for the business and its debts
- How profits are distributed among owners or partners
- What reporting and compliance obligations you have
- How easy it is to bring in new investors or partners later
Changing your structure after you have already started can be costly and time-consuming. Getting the right advice before you register is the best way to avoid problems down the road.
What Is an ABN?
An ABN (Australian Business Number) is an 11-digit number issued by the Australian Government. It is used to identify your business when dealing with other businesses and government agencies.
Why You Need an ABN
- It allows you to issue invoices and get paid as a business
- It is required to register for GST
- It helps you avoid PAYG withholding on payments received
- It is needed when opening a business bank account or signing commercial contracts
How to Apply for an ABN
Step 1: Choose your business structure before applying. Your ABN will be linked to that structure.
Step 2: Gather your personal identification details and your TFN.
Step 3: Apply through the Australian Business Register (ABR) at abr.gov.au. The application is free and most are processed within a few minutes.
ABN applications must be accurate. Mistakes can cause delays or rejection. A business setup professional can handle the process on your behalf to make sure everything is correct from the start.
Registering a Company with ASIC
ASIC (Australian Securities and Investments Commission) is the government body that regulates companies in Australia. If you choose to operate as a company, you must register with ASIC.
What Is a Company?
A company is a separate legal entity from its owners. This means:
- The company can enter contracts, own property, and take on debt in its own name
- Directors and shareholders are generally not personally liable for company debts
- The company continues to exist even if ownership changes
This separation of personal and business liability is one of the main reasons people choose to operate as a company.
How to Register a Company with ASIC in 2026
Step 1: Choose a company name and check its availability on the ASIC register.
Step 2: Decide on your directors and shareholders. You must have at least one Australian resident director.
Step 3: Choose whether to use a company constitution or rely on the replaceable rules under the Corporations Act 2001.
Step 4: Submit your application through ASIC Connect or through a registered agent.
Step 5: Pay the ASIC registration fee. This fee is charged annually and must be renewed each year.
Step 6: Receive your ACN (Australian Company Number). This is your company’s unique identifier.
Step 7: Apply for an ABN for the company. The company is a separate entity, so it needs its own ABN.
Ongoing ASIC Obligations
Once registered, a company has ongoing obligations. These include paying the annual review fee, keeping company details up to date, and lodging certain documents when changes occur. Staying on top of these requirements helps you avoid penalties.
Understanding Trust Structures
A trust is a legal arrangement where one party (the trustee) holds and manages assets on behalf of others (the beneficiaries). Trusts are commonly used in Australia for asset protection and flexible income distribution.
Types of Business Trusts
Discretionary (Family) Trust The trustee has full discretion over how income is distributed among beneficiaries each year. This flexibility makes it a popular choice for family-run businesses. The trustee is not required to distribute income equally or consistently.
Unit Trust Beneficiaries hold a fixed number of units, similar to shares in a company. Income and capital are distributed in proportion to unit holdings. This structure is well suited to joint ventures where ownership percentages need to be clearly defined.
Hybrid Trust A combination of discretionary and unit trust features. It offers some flexibility while still providing fixed entitlements for certain beneficiaries.
How to Set Up a Trust in Melbourne
Step 1: Decide which type of trust suits your goals. Consider asset protection, income distribution needs, and future growth plans.
Step 2: Appoint a trustee. This can be an individual or a company. A corporate trustee (a company set up specifically to act as trustee) is often recommended for added protection.
Step 3: Prepare a trust deed. This is the legal document that governs how the trust operates. It sets out the rules for distributions, trustee powers, and beneficiary entitlements.
Step 4: Check whether stamp duty applies to the trust deed in Victoria. Requirements can change, so confirm current obligations with your adviser.
Step 5: Apply for an ABN for the trust. The trust is treated as a separate entity.
Step 6: Open a dedicated bank account in the name of the trust.
Important Considerations
Trusts require annual administration. The trustee must make formal distribution decisions each financial year and keep proper records. Anyone considering a trust structure should seek professional advice before proceeding, as the setup and ongoing management can be complex.
Comparing Business Structures Side by Side
| Structure | Legal Liability | Ownership | Complexity | Best Suited For |
|---|---|---|---|---|
| Sole Trader | Personal | Individual | Low | Freelancers, solo operators |
| Partnership | Shared personal | Two or more people | Low to medium | Small co-founded businesses |
| Company | Limited | Shareholders | Medium to high | Growth-focused businesses |
| Trust | Varies | Trustee holds for beneficiaries | Medium to high | Asset protection, income distribution |
Each structure has trade-offs. The right choice depends on your goals, the size of your business, and how many people are involved.
What to Do After You Register
Registering your business is just the first step. Once your structure is in place, there are several important things to set up to keep your business running properly.
Register for GST
If your annual turnover is expected to reach $75,000 or more, you must register for GST. Some businesses with lower turnover may also choose to register voluntarily depending on their industry.
Set Up Accounting Software
Accounting software helps you track income, manage expenses, and stay on top of your finances. Xero is one of the most widely used platforms for small businesses in Australia. It connects directly to your bank, automates many processes, and makes reporting straightforward.
Setting up the software correctly from the start saves significant time and reduces errors later. This includes configuring your chart of accounts, setting up bank feeds, and creating report templates suited to your business.
Manage Payroll
If you have employees, you are required to process payroll in line with Australian workplace laws. This includes managing superannuation contributions and reporting to the ATO through Single Touch Payroll (STP). From July 2026, new Payday Super rules will also require super to be paid on each payday rather than quarterly.
Lodge BAS Statements
Businesses registered for GST must lodge Business Activity Statements (BAS). These statements report GST collected and paid. Lodging on time is important to avoid penalties.
Understanding Your Compliance Calendar
One of the most common challenges for new business owners is keeping up with compliance deadlines. Missing lodgements or payments can result in penalties and interest charges.
Here is an overview of key compliance dates and obligations to be aware of in 2026:
BAS Lodgement
If you are registered for GST, you must lodge a Business Activity Statement (BAS) either monthly or quarterly. The due date depends on your lodgement cycle and whether you lodge through a registered agent. Registered agents often receive extended deadlines.
Superannuation Contributions
Employers must pay superannuation for eligible employees. Currently, contributions are made quarterly. From 1 July 2026, the new Payday Super rules will require super to be paid every time you run payroll. This is a significant change that businesses need to prepare for now.
ASIC Annual Review
Companies receive an annual review notice from ASIC each year. This is a reminder to confirm your company details are up to date and to pay the annual review fee. Ignoring this notice can lead to your company being deregistered.
Single Touch Payroll (STP)
If you have employees, you must report payroll information to the ATO through STP every time you process a pay run. This is a real-time reporting obligation and cannot be done retrospectively without consequences.
Staying organised and knowing your deadlines in advance makes compliance much less stressful. Many businesses use accounting software to set reminders and automate parts of this process.
Your Melbourne Business Journey Starts Here
Setting up a business in Melbourne in 2026 involves real decisions that have a lasting impact. From picking the right structure to staying on top of ASIC obligations and compliance deadlines, getting the foundations right from the start saves you a lot of trouble down the track. Take the time to understand your options before you register, keep your records clean from day one, and do not be afraid to ask for help when you need it.
If you would like guidance specific to your situation, Elite Plus Accounting works with Melbourne small businesses at every stage of the setup process.
Frequently Asked Questions
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