Start a business in Canberra

• Before getting started, take time to understand the key aspects of running a business.
• Consider your skills, salary, business idea and viability, funding and do your research
• Assess if you’re ready professionally and personally.

Do your research

• Understand the difference between a business and a hobby.
• This will impact your tax, insurance and legal obligations.
• You need to register a business if you plan to make a profit and repeatedly sell a product or service.
• If you’re turning a hobby into a business, use this guide to help you.

Understand the difference between a business and a hobby

• Prepare carefully before launching your business.
• Research key factors like:
  • Demand: check if there a market for your product or service.
  • Financial feasibility: see if you can you make a profit.
  • Competition: find out who offers similar services or products.
  • Protection: decide if you need trademarks to protect your ideas.
  • Risks: explore and research where you might face risks.
• This type of market research helps you understand your customers, products, services and competitors.
• Use data from the Australian Bureau of Statistics to help you research and understand your market and customers. Data includes socio-economics, labour hire and trade.

Research and analyse

• Before you start your business, it’s important to plan for the start-up costs.
• Start-up costs are the expenses you pay before your business makes money.
• These costs depend on your type of your business and can include:
  • buying or leasing a space
  • paying staff
  • ecommerce platforms
  • advertising and marketing
  • stock or production
  • insurances and more.
• Understanding these costs helps you plan, get finance, assess profitability and manage cashflow.

Calculate your start-up costs

• Create a business plan to help define your goals, values, market, growth options and risks.
• Your business plan helps you meet your goals at different business stages.
• Update your business plan as your business grows and evolves.
• A business plan demonstrates your business’s value when seeking funding or attracting investors.

Create a business plan

• Promote your business and attract new customers with marketing and advertising.
• Marketing is critical for business success and often underestimated.
• Create a marketing plan to know who you want to reach and how.
• Think about whether you'd like help from a marketing agency.
• Research and understand your customers as part of your marketing plan.
• Use research from The City Renewal Authority's Place Experience & Marketing Action Plan [PDF 4.6MB] to understand Canberra's customer types.
• Use data from the Australian Bureau of Statistics to help with research.

Create a marketing plan

• Before you start, make sure you can meet your businesses legal requirements.
• This includes insurance, safety standards, privacy and more.

Read the protect your business guide

• Decide on your business structure before you start your business.
• Your business structure shows how you operate as a trading business.
• Business structures have both Australian and ACT regulations.
• Choose your structure based on your business size, type and how you want to run it.
• Different business structures have different requirements. They impact key areas like:
  • how much tax you pay
  • licences
  • asset protection
  • liability
  • costs to set up.
• If you need support choosing a structure speak to your accountant.

Learn more about different business structures

These businesses are regulated by the Australian Government.

• A sole trader: the simplest structure available. It gives you full control.
• A company: is more complex. It limits your personal liability because it’s a separate legal entity.
• A partnership: when two or more people work together. They share money and losses they make.
• A trust: has a trustee who is responsible for business operations.
• A mutual: a member-owned organisation where members are the customers.

Choose a business structure

• The ACT Government, through Access Canberra, regulates:
  • not-for-profits
  • co-operatives
  • associations.
• These businesses must be registered in the ACT and meet Australian-wide regulations.
• Learn about the requirements for each before deciding on your business structure.
• The Access Canberra Business Assist Team can help with these business requirements in Canberra.

Contact Access Canberra Business Assist Team

Not-for-profit and social enterprises

• A not-for-profit can register as a company or an incorporated association.
• Non-profit organisations will need to apply for a charitable collections licence with Access Canberra.
• Social enterprises do not have a legal structure in the ACT. If you are considering this type of business, speak to a lawyer to discuss your options or you may learn more by contacting The Millhouse Ventures.

Apply for a charitable collections licence

Co-operatives

• A co-operative is a member-owned structure that serves its members.
• You must register a co-operative with Access Canberra.
• Co-operatives are values driven, community-based, democratic organisations.
• They're owned and controlled by their workers, members and people who use their service.
• They’re not owned by shareholders and profits generated are reinvested in the enterprise or returned to the members.

Register your co-operative with Access Canberra

Associations

• An association is simpler and more affordable than a company with a legal entity separate from its members.
• There are specific rules in the ACT for running an association. Understand your obligations and reporting requirements to the ACT Government before you apply.

Learn more about how to run an association in Canberra

When choosing a location for your business there are many things to consider, including:

• financial costs, including any tax implications
• gas connections and appliance requirements
• what your business does will determine the workspace you need.

Help choosing a workspace

Before you buy or lease

• Before buying or leasing a property, you can purchase a copy of the title and Crown lease from the Land Titles Office.
• Check the Crown lease for the obligations authorised by the lease. For example, if the property can be an office, shop, restaurant or if you can sell alcohol.
• Work with your planning professional or conveyancer. They can help you understand if your venue is suitable for your business.
• You can also get help with a Crown lease from the Leasing Team.

You can apply to change the use of the property if it’s suitable and allowed in that land use zone.

What you’ll need

To change the use of the property you need to apply for development approval.

Changing a Crown lease

Understand planning rules about what is allowed at your location with construction or fit out changes.

Before you build, renovate or change the fit-out

• If you decide to build or renovate your premises, you may need to get planning approval before you start.
• It’s important to understand the planning laws in the ACT.
• There are a few types of approvals:
  • development approvals
  • building approvals, and
  • other approvals.
• If you are starting a food business, the construction and layout can affect food safety. Use the how to start a food business guide to understand the different rules for food businesses.
• Talk to City Services if your construction plans for your business affect:
  • driveways,
  • public roads
  • verges
  • public open spaces.
• Before you start work get advice from a planning and building professional. This can include a licensed building surveyor and builder.

• A development application (DA) is a formal application for permission if you plan any renovations, fit out or building works for your business site.
• You’ll need development approval (DA) before you get Building Approval (BA).
• DA approvals are needed to change the Crown lease for your site. Check your Crown lease before you purchase or lease a site.
• Generally, most developments in the ACT need DA approval before work can begin.
• If you have a home business, read more in step 8 to see if you are exempt.

Exemptions

• In some cases, you might be exempt from a DA.
• To be exempt, you must meet the specific and general exemption criteria. This is outlined in The Planning (Exempt Development) Regulation 2023.
• You can self-check whether you’re exempt before submitting a DA. If you want support, work with a certified builder or building surveyor.

Check if you need a DA

• Most building projects including new builds, alterations and additions need building approval (BA).
• A BA ensures a project is built safely and complies with relevant laws and codes.
• You must have BA before any building work can start.
• All building work, whether exempt or not, must comply with building laws and standards, including the National Construction Code (NCC).
• Work with a building certifier to get all the approvals you need.

Exemptions

• To be exempt, you must meet the specific and general exemption criteria. This is outlined in Building (General) Regulation 2008.

Check if you need a BA

You may also need approvals for:

• works that may have a significant impact on the environment or heritage
• unit titling, or
• designated areas under the control of the National Capital Authority (NCA).

There are a few other types of work that may need other approvals:

• trees
• driveways
• verges or nature strips
• stormwater easements
• waste management
• pools and spas, or
• telecommunications.

Find out more about other approvals you may need

The ACT Government is encouraging businesses to switch from gas to all-electric appliances. They are more efficient and better for the environment.

This means that the ACT Government does not allow new gas network connections. Keep this in mind when choosing a location for your business.

If the premises does not already have a gas connection, you will not be able to get one. If the property has an existing gas connection, you will know because of a gas meter.

If you remove the gas connection, you may not be able to reconnect it. Builders sometimes need to remove the gas connection to make a worksite safe.

Think about this when you choose a location for your business. If you can, use electric appliances instead.

Talk to ACT Government about rebates to go electric.

Find out how to get rebates to go electric

• Before deciding on a business name, check it is available.
• Search the ASIC business names register.
• You can’t use a business name someone has registered as a trade mark. It could get you into legal trouble.
• Use TM Checker to check if there's a trade mark on your business name.
• Owning a domain name for a website does not give you rights to the business name.

Check if your business name is available and it's not trade marked

• Check if your business name is available and register it with ASIC.
• Business names are registered nationally. You don’t need to register the name separately with your state or territory.
• Pay the fees to register your business name with ASIC:
  • $445 for 1 year
  • $104 for 3 years
• Make sure you have an Australian Business Number (ABN) or are ready to apply for one.
• To get exclusive rights to your business name, you need a trade mark.
• You can apply for a business name and other key business registrations through the Business Registration Service.

Register your business name with the Business Registration Service

• An Australian Business Number (ABN) is a free and unique number that identifies your business to government and other businesses.
• An Australian Company Number (ACN) is a free and unique number that identifies your company.  A company has different legal, financial and record keeping responsibilities compared to other business structures. Read more in step 2 choose your business structure.
• Customers, suppliers and the ATO use your ABN to help identify your business.
• It’s free to register an ABN and can take up to 20 business days.
• If you change your business structure, you may have to register for a new ABN.
• You can apply for an ABN and other key business registrations through the Business Registration Service.

Register your ABN with the Business Registration Service

• All businesses must have a tax file number (TFN).
• A TFN means your business can meet its tax obligations.
• If you run a business as a sole trader, you can keep your individual TFN.
• If you operate as a partnership, company or trust, you need to register a separate TFN for the business.

Apply for a TFN

• If you buy or sell goods and services you may need to register for Goods and Services Tax (GST).
• You’ll need to register for GST if you have a GST turn-over of $75,000 or more.
• When registered for GST, invoices to customers must include the GST amount for each good or service.  Or you can make it clear that the total price includes GST.
• You can find more about GST on imported goods and services on the ATO website.

Register for GST with the Business Registration Service

• PAYG withholding is when you take out (withhold) tax from some payments and pay it to the Australian Taxation Office.
• You may need to withhold tax if you pay employees, some contractors or businesses that don’t tell you their ABN.
• PAYG helps workers reduce the tax they need to pay at the end of the financial year.
• You must register for PAYG withholding before you make the first payment you withhold tax from.
• You can register online or ask your tax or business activity statement (BAS) agent to register for you.

Register for PAYG with the Business Registration Service

• Payroll tax is a state and territory tax on wages that employers pay employees.
• Not all businesses have to pay payroll tax. Any tax is calculated based on the amount of wages you pay employees Australia-wide per month.
• For employers in the ACT, you only have to pay it if your total taxable wages, or the total taxable wages of the group of employers you belong to, exceed the payroll tax threshold.

Learn about your tax requirements

There may be other taxes you may need to pay, including:

• income tax for business
• capital gains tax (CGT)
• fringe benefits tax (FBT).
• ACT-based taxes, like stamp duty, rates, land tax and more.
• Use the business registration – help me decide tool to find out which tax registrations you may need to apply for.
• Home-based businesses also have specific tax implications and deductions that are allowed. Know what expenses you can claim and whether you have to pay capital gains tax when you sell your home.
• If you’re setting up a charity or not-for-profit there are different tax rules. If you’re registered with the Australian Charities and Not-for-profit Commission, you can apply for charity tax concessions or exemption from the ATO.
• ACT-based concessions or exemptions for charitable organisations and not-for-profit organisations will vary.
• Mutual organisations, associations and co-operatives need to lodge a tax return with the ATO.
• It's important to keep records for a range of things including your taxes, superannuation, income, expenses and employees.

Learn more about taxes

• Your business type and structure will impact which licences and permits you need.
• Licences and permits authorise your business to carry out certain activities and help protect your business and employees. For example, if you’re a food business, a liquor licence gives you approval to sell alcohol to your customers.
• Licences regulate most industries and impact things like:
  • building and transport requirements
  • environment protection
  • fair trading laws
  • infection controls
  • liquor and hospitality licences
  • operating on public holidays.
• Use the Australian Business Licence Information (ABLIS) service to help you find out what licences and permits your business needs.
• Contact the Access Canberra Business Assist Team if you need more support.

Check which licences and permits you need

• There are licences and permits regulated by the ACT Government.
• These include:
  • Liquor licences
  • Labour hire licences
  • Working with Vulnerable People Check
  • Occupational licenses and permits and more.
• If you have an occupational licence from another state or territory, you might benefit from automatic mutual recognition. This means your license is recognised in the ACT and you can operate without renewing it.

Check which licences your business needs

Labour hire licence

• If your business supplies workers to other businesses, you need a labour hire licence.
• Labour hire providers are individuals or businesses that:
  • supply workers to do jobs for other people
  • pay the workers for their work, either directly or indirectly.

Apply for a Labour Hire Licence

Working with Vulnerable People check

• If your business involves working with children or vulnerable people in the ACT, you and your staff may need a valid WWVP check.
• Renew WWVP checks every 5 years.
• The check helps reduce the risk of harm and neglect to vulnerable members of our society.

Apply for a Working with Vulnerable People Check

Public land permit

• A public land permit is needed for any events on public land that may impact the space or other people's enjoyment of the area. This includes any ACT Government owned parks and reserves.
• This could include:
  • weddings
  • private functions
  • charitable collections
  • events
  • markets
  • festivals
  • rallies.
• Use the holding an event in Canberra guide to help you make sure you’re meeting all requirements.

Apply for a public land permit for your event

Public Land Permit for commercial use

• You need a public land permit for any events on public land that may impact the space or other people's enjoyment of the area. This includes any ACT Government owned parks and reserves.
• Land use fees are only applied to commercial land use activities.
• Commercial land use includes:
  • Commercial waste bins. Skips that are non-commercial, fill out the storage of residential bins/skips form (PDF 482.7 KB)
  • Temporary storage of construction or building material for commercial development purposes.
  • Parking for commercial developments.
  • Longer term overflow car parking.
  • Ongoing commercial market activities.

If you are part of a non-for-profit organisation or charity, complete an event application.

Apply for a public land permit

• Read this guide from step 1 through to step 8 to make sure you meet your legal obligations and are protected.
• To run your business legally, you may need register for these basics:
  • Australian Business Number (ABN)
  • Goods and Services Tax (GST)
  • Tax file number (TFN)
  • Pay as you go (PAYG) withholding.

• There are other laws you need to consider when running your business.
• This can include:
  • Fair trading laws
  • Australian Consumer Law and your business
  • Competition and Consumer Act
  • Australian standards
  • Codes of conduct
  • Warranties and refunds
  • Product labelling
  • Contracts
  • Privacy laws
  • Employment laws.
• Get advice from a legal professional or business adviser.
• Speak to the Canberra Business Advice and Support Service to understand the legal requirements for your business.

Read the protect your business guide

If you employ staff, there are legal requirements you must meet.

This can include:

• paying superannuation
• leave entitlements
• pay and conditions and more.

Read the managing employees guide

Understand the rules you need to follow when running your business from home on a residential lease.

Development approvals

• You may need a DA approval to legally run your business from home.
• If you need to change your property for your business, you may need a DA approval or building approval. Building approvals are done by a private certifier.
• If you're a hairdresser and have more than 5 cars visiting each day on average over a week, you'll need approval.
• If the business is operated from a unit under the Unit Titles Act 2001, like a body corporate, vehicles must be parked in parking for the unit.
• If you want to start a home-based business and are renting a property, you must get approval from your landlord. This includes an agreement in your tenancy agreement. You must also follow body corporate laws if living in a strata complex.
• If you can’t meet noise and air emission rules, you can’t start a home-based business.
• Check the noise level and air emissions rules for your land use zone.
• For example, motor mechanics, carpenters, spray-painting booths and coffee roasteries aren’t suitable for residential areas. They usually cause noise and odour complaints.
• Home-based business must still comply with all workplace health and safety rules.
• If you run a food business from home, read the start a food business guide for more.

Exemptions

• A home business is exempt from a DA if they meet the general and specific exemption criteria.
• Any sign relating to the business may be exempt from a DA approval. Please note, your home business may be exempt from a DA approval, but you may still need a DA for signage. Check the exemptions in the Signs Development Control.
• These exemptions also apply to mobile food businesses on a residential lease as part of generally operating as a home business.
• If you don’t meet exemption criteria, talk to the Territory Planning Authority. They may give approval and will look at: 
  • the number of customers
  • vehicles visiting your property
  • accessibility
  • the negative impacts on neighbours
  • appropriate use on the block and more.

Check if you need a DA

• Mobile businesses have extra rules when moving from place to place, like waste disposal, air emissions and noise levels. For example, mobile carpet cleaners and mobile pet groomers must dispose of wastewater in sewers. They can’t dispose of wastewater in stormwater systems which run into our creeks and waterways. Penalties can range from $100 on-the-spot fines to court fines of up to $50,000, six months in jail and a criminal record.
• Check the noise level and air emissions rules for your land use zone.
• Light trailers and caravans used for mobile businesses need to register to legally operate on ACT roads.
• Mobile food businesses need a free Hawkers Permit to operate on public land if trading in the same location for longer than 30 minutes. If you operate on national land, you need to get permission from the National Capital Authority. Visit the start a food business guide to learn more.

Find out more about environment protection obligations