How to Get a Small Business License in Australia: Step-by-Step Guide

• A small business license in Australia is not one document, but a set of federal, state and local registrations that together allow a small business to trade legally. Whether you are launching a sole trader operation, an online store or a Pty Ltd company, the exact combination of approvals you need depends on your industry, your location and your business structure. 

• This guide explains step by step company set up in Australia including, what obtaining these approvals actually involves, how the application process works, and where foreign entrepreneurs commonly run into delays. 

• Quick Answer: 

• There is no single small business license in Australia issued by one authority. In most cases, small business owners need to: 

• Register an Australian Business Number (ABN) with the Australian Business Register (ABR). 

• Incorporate a company with the Australian Securities and Investments Commission (ASIC) if trading as a Pty Ltd entity. 

• Check the Australian Business License and Information Service (ABLIS) for industry and location-specific permits. 

• Apply for any relevant state, territory, or local council approvals. 

• Register for the Goods and Services Tax (GST) once turnover exceeds the mandatory threshold. 

What Counts as a Small Business License in Australia? 

• This licensing bundle refers to whichever combination of registrations, permits and approvals your specific business activity requires. Small businesses are generally defined by the Australian Taxation Office (ATO) as entities with an annual turnover under AU$10 million, though the requirements are based on activity and location rather than size alone. 

• Sole traders – usually need only an ABN and, where relevant, an industry-specific permit. 

• Partnerships and trusts – require an ABN and, in most cases, a partnership or trust registration. 

• Pty Ltd companies – require Australian Securities and Investments Commission (ASIC) incorporation under the Corporations Act 2001, plus an ABN. 

• Practical takeaway: confirm your business structure first, since it determines which registrations sit underneath your overall licensing obligations. 

Do Small Businesses in Australia Actually Need a License? 

• Yes, in almost every case. Even a home-based online store selling to Australian customers typically needs an ABN, and many home-based activities still require council approval. 

• Best for: founders who confirm licensing requirements before signing a lease or accepting their first customer payment. 

• Main challenge: small business owners often assume a low-turnover or part-time business is exempt from applicable registration, tax, licensing or permit requirements, which is rarely true. 

• Verdict: treat licensing as a pre-launch task rather than an afterthought, since operating without the correct approvals can result in fines or forced closure. 

How to Get a Small Business License in Australia: Step-by-Step Process 

Step 1: Choose Your Business Structure 

• Decide between sole trader, partnership, trust or Pty Ltd company. 

• Sub-point: your structure affects your tax obligations, personal liability and which registrations you must complete. 

Step 2: Identify Your ANZSIC Code 

• Use the Australian Business Register (ABR) code lookup tool to find the Australian and New Zealand Standard Industrial Classification (ANZSIC) code that matches your activity. 

• This code is used by Australian Business License and Information Service (ABLIS) and state regulators to determine which permits apply to your business. 

Step 3: Incorporate With ASIC (If Applicable) 

• If you are setting up a Pty Ltd company, register it with ASIC to receive an Australian Company Number (ACN). 

• Sub-point: Company set up in Australia assistance is available if you would rather outsource the incorporation of paperwork. 

Step 4: Register Your ABN 

• Apply for a free Australian Business Number through the ABR. 

• Sub-point: an ABN is a prerequisite for issuing invoices, registering for GST and opening a business bank account. 

Step 5: Search ABLIS for Your Specific Requirements 

• Enter your ANZSIC code and business address into ABLIS to generate a tailored report of applicable licenses and permits. 

• Sub-point: this step is essential, since requirements can vary from one council area to the next, even for the same activity. 

Step 6: Apply for State and Local Permits 

• Lodge applications with your relevant state or territory regulator for occupational licenses, such as trade, hospitality or real estate licenses. 

• Sub-point: submit planning, signage or health permits directly to your local council before opening premises. 

Step 7: Register for GST and Other Tax Obligations 

• Register for GST with the ATO once your GST turnover reaches or is expected to exceed AU$75,000 annually. 

• Sub-point: this threshold is lower for taxi and ride-sharing businesses, which must register for GST regardless of turnover. 

How to Apply for a Small Business License in Australia? 

• Once you have identified the specific approvals your business needs, the application process generally follows this pattern: 

• Federal registrations are lodged online through the ABR, ASIC and the ATO. 

• State and territory licenses are lodged through the relevant state licensing authority’s online portal. 

• Local council permits are lodged directly with the council covering your business address. 

• Foreign entrepreneurs applying without local representation often experience delays at the identity verification stage, since several Australian registrations require a local director, agent or public officer. Engaging a registered corporate services provider typically shortens this timeline considerably. 

Comparison by Business Structure 

Business Structure	Registrations Required	Personal Liability	Typical Setup Time
Sole Trader	ABN, relevant permits	Unlimited	1 to 2 days
Partnership	ABN, partnership registration, permits	Unlimited (shared)	3 to 5 days
Pty Ltd Company	ASIC registration, ACN, ABN, permits	Limited to company assets	1 day to 2 weeks

Common Mistakes to Avoid 

• Assuming a low-turnover or part-time business is automatically exempt from ABN or GST registration. 

• Overlooking local council permits, particularly for home-based or food-related businesses. 

• Failing to renew occupational licenses before their expiry date. 

• Not updating ASIC and ABR records after a change of address or business activity. 

How Can Tetra Consultants Help? 

• Setting up and licensing a small business license in Australia can be complicated for founders unfamiliar with the country’s three-tier regulatory structure. Tetra Consultants supports international entrepreneurs across the full business setup journey, including: 

• Offshore company incorporation – structuring and registering your Australian entity correctly from the outset. 

• Corporate bank account opening – securing local banking relationships without unnecessary travel. 

• International trademark registration – protecting your brand name as you scale into the Australian market. 

• Our team also assists with ABN and ASIC registration, ANZSIC classification, and coordinating state and local permit applications, so founders can focus on operations rather than paperwork. 

Conclusion 

• Obtaining a small business license in Australia means working through a structured sequence of federal, state and local registrations rather than filing one universal application. Sole traders often need little more than an ABN, while regulated industries such as food service, construction and financial services face additional state and local requirements. Founders who confirm their ANZSIC code and licensing obligations before launch consistently avoid the compliance issues that come with retrofitting approvals after opening. 

• If you are ready to register your company and secure the correct licenses in Australia, our team can manage the process end to end. 

• Contact Us and we will revert within 24 hours. 

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