Even before you decide to start a small business, you’ll need to ensure you are eligible to do so and consider the best structure for your business.
Some people are automatically disqualified from managing companies or holding business names in Australia.
If you are bankrupt or have signed a Personal Insolvency Agreement under Part X of the Bankruptcy Act 1966 (the terms of which have not been fully complied with), you cannot manage a company. For more information see Information Sheet 14 Bankruptcy and personal insolvency agreements (INFO 14).
ASIC has the power to disqualify or ban you from managing a company for up to five years if (and in addition to other reasons):
If you have been convicted of certain dishonesty-related offences, such as theft or fraud, you are automatically disqualified from managing a company for five years. The five-year period begins on the day you were convicted or, if you were imprisoned, from the day you were released.
It is a criminal offence to manage a company when disqualified.
Business name holders must also meet eligibility requirements.
When you start a business, it is important to choose a structure that best suits your needs. The most common types of business structures are sole trader, partnership, trust and company.
A business name is the name or title under which a person or company conducts business.
You must register a business name if:
A business name can be registered for one or three years. All business names used in Australia are registered with ASIC.
Find out more on how to register, renew, transfer or cancel your business name.
