Starting a new business is exciting, but before you can open your doors, it’s essential to navigate the legal landscape to ensure you’re set up for success.
From permits to licenses, understanding the legal requirements for your business helps protect you from future issues and builds a solid foundation for growth.
In this week’s Let’s Talk, our experts will walk you through the key legal considerations for starting a business, covering the types of permits and licenses you may need and how to obtain them.
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Rolf Howard, Managing Partner at Owen Hodge Lawyers
“While licences and permits in business can sometimes feel like ‘red tape’, they serve an important function in protecting the consumer, public safety and health, the environment and quality standards.
“The permits and licences required to operate a business legally in Australia will depend on the industry, location and business type. For example, licences may be required for building, food handling, liquor sales, environmental management, operating a taxi, and more. What’s required will vary depending on the state, region or local council as well.
“It’s important to ensure you have all the necessary licences and permits in place before your business starts operating. Failure to do so could result in fines or other penalties.
“Some common licences and permits to run a business in Australia include an Australian Business Number (ABN), Goods and Services Tax (GST) registration, Tax File Number (TFN) and PAYG Withholding.
“The Australian Business Licence and Information Service (ABLIS) is a useful online tool which enables you to search for licences and permits based on your business type, activities, and location across the country.
“Other options for identifying your specific licences and permits include contacting your industry association or a business advisor.”
Mary Turco, Partner and Co-Founder of Dowson Turco lawyers
“Starting a business in Australia requires industry-specific permits and licences. Hospitality businesses may need food and liquor licences, event promoters might need Crown land permits, and beauty clinics often require qualified staff. Trades and financial services also require certifications, and certain businesses must have insurance.
“First, confirm your industry qualifications and certifications. Consulting an industry association or local TAFE can be helpful. Next, decide your business structure: sole trader, partnership, or company. Each has pros and cons, so seek advice from a lawyer or accountant. Consider protecting intellectual property—whether it should be owned by the business or a separate holding company—and whether to register a trademark.
“Once you select a structure, set it up with your lawyer or accountant and apply for an Australian Business Number (ABN) for trading. Companies will also receive an Australian Company Number (ACN). You’ll need a tax file number (TFN) and, if you have employees, register for Pay As You Go (PAYG) tax withholding with the Australian Taxation Office.
“If your business turnover exceeds $75,000 annually or meets specific criteria, register for Goods and Services Tax (GST). Nonprofits earning over $150,000 and businesses claiming fuel tax credits also need GST registration.
“Plan agreements with customers and suppliers and consult a lawyer for contracts. Follow these steps and you’re ready to run.”
Walter Scremin, CEO, Ontime Delivery Solutions
“While every business will need an ABN, other permits and licenses may depend on what industry you are operating in.
“One issue which may surprise some businesses starting out is that labour hire laws apply to outsourced suppliers, and it’s up to you to ensure your suppliers are licensed. The labour hire laws will differ by state.
“Breaching these laws can be costly. According to the Labour Hire Authority in Victoria: Maximum penalties exceeding $600,000 for a corporation and $150,000 for an individual apply under the Act for providing labour hire services without a licence, or engaging unlicensed labour hire services.
“Remember you can be penalised if you don’t ensure your suppliers are properly licensed. Business must also register for workers compensation insurance – again this will differ by state. Some other important compliance issues include ensuring all staff have the required licences and permits – if you have delivery drivers you must ensure driver licences are current. It’s similar with forklift licences, vehicle registrations, work visa permits and so on.”
Charles Ferguson, General Manager and Corporate Development Lead for Asia Pacific, Middle East & Africa (APMEA) at G-P
“In today’s global marketplace, geographical boundaries are becoming less relevant and executives worldwide recognise the importance of tapping into different markets to find the best talent. However, a recent study by G-P highlights a concern: while many companies have embraced the borderless workforce, 39% of Australians find compliance with local employment laws challenging when breaking into new markets.
“Navigating legal requirements across different regions can be complex, with each market having its own regulations governing what is needed for legal operation.
“The right tools and partners can streamline complex processes, helping Australian businesses stay competitive, build trust with their employees, and mitigate risks. Global employment solutions, like G-P’s SaaS-based Employer of Record (EOR), can be game-changers. They make it easier for businesses to scale across borders, allowing them to quickly and compliantly build and manage global teams without the need to set up local entities.
“By embracing these solutions, companies can effectively manage the intricacies of a borderless workforce, positioning themselves for sustained growth in the international market while ensuring they meet all legal obligations and remain compliant.”
Susanna Ritchie, Director, Workplace Wizards
“Starting a business in Australia brings a world of opportunity, but making sure you’re legally prepared from day one is key to long-term success. Thoughtful employment contracts are a great starting point. These agreements do more than outline the basics; they establish expectations, confidentiality obligations, and set the tone for a professional, respectful workplace. Deciding on employment types is equally important, as each role—whether permanent, contractor, or casual—has its own legal requirements. With new regulations introducing fixed maximum terms for certain roles, getting these distinctions right is more important than ever.
“Compliance with the Fair Work Act is foundational, ensuring fair treatment, proper pay, and essential entitlements, which all help build trust and respect within your team. Safeguarding your workplace also means meeting obligations around workers’ compensation and health and safety, which protect everyone’s well-being and show a commitment to a secure environment. Finally, recent legal changes around preventing and managing sexual harassment set a higher standard for workplace respect and inclusivity. These aren’t just formalities—they’re the building blocks of a business where every team member feels valued, respected, and empowered to contribute.”
Adam Henderson, Partner Corporate at Hicksons Lawyers
“Setting up your business is an exciting exercise. So you can focus on growth and innovation, getting the set-up right from the outset is important.
“In Australia, some initial legal considerations include:
- Selecting your business structure like a company;
- Securing your ‘business name’;
- Obtaining an ABN and registering for GST; and
- Obtaining the necessary licenses and permits.
“If you are partnering with others, you may need a ‘shareholders agreement’. This will set out the rules for how the business makes decisions, how funds can be raised and ‘exits’ are dealt with. Where we regularly see problems is in 50/50 founder arrangements often ending in a ‘deadlock’. Therefore, the right mechanisms are needed to ensure sensible pathways exist to allow business continuity.
“Other considerations include employment (key hires, ESOPs), insurance, and product and industry regulations. For many of our clients their journey will involve commercialising IP – this can include registering trademarks, IP licensing, and entering customer contracts.
“Finally, another important consideration for every business is how it collects, holds, uses, and protects ‘data’ — especially sensitive data. Having cyber security and data protection measures in place ensures legal compliance and protects your business from ‘bad-actors’, and keeps your customers information secure.”
Shelley Breen, Founder, shelleybreen.com
“Starting a small business in Australia requires careful planning. Begin by selecting the right structure for your needs. Consult an accountant, as different options, like sole trader or company, have varying tax and liability implications. Register your business name with ASIC, and consider trademarking your brand to protect it, and budget between $2,000 and $10,000 for setup, including registration, insurance, and professional fees.
“Insurance is crucial: professional indemnity and public liability protect against claims, cyber insurance safeguards data, and business insurance covers your business assets and location. Clear terms and conditions with clients, suppliers and other third parties and NDAs help prevent disputes. Partner with a reliable lawyer who understands small business needs and can offer ongoing support.
“If you handle customer data, comply with the Privacy Act and data security laws. Set up robust financial record-keeping, and if hiring, ensure contracts meet Fair Work standards on wages and entitlements. Membership in local business associations offers networking and growth support. Regular compliance reviews with your accountant and lawyer keep your business on track as it expands. Following these steps builds a legally secure foundation for success, letting you focus confidently on growth.”
David Antonacci, Director at Teeny Tiny Homes
“At Teeny Tiny Homes, we’ve learned that navigating permits and licenses is crucial, and it’s about more than just meeting basic requirements.
“We design, build, and install designer demountable homes, so understanding the QBCC Act 1991 is critical. This means securing the right certificates and ensuring our builds comply with a detailed Form 15, covering everything from structural integrity and waterproofing to electrical and plumbing standards.
“But here’s the key: we use this compliance to benefit our clients. Knowing their tiny home meets stringent regulations gives them peace of mind and ensures a smooth installation process, free from council-related hurdles.
“Many tiny homeowners get caught out by local regulations. By proactively building to the permits and regulations, we eliminate this stress for our clients. This approach has been invaluable for our business, building trust and streamlining the entire experience.
“My advice? Don’t just meet the minimum requirements – exceed them. It’s an investment in your clients, your reputation, and the long-term success of your business.”
Kristian Inglis, Head of Human Resources at Employment Compass
“Choosing the right company structure is a key first step for any new business in Australia, and it has a direct impact on your HR practices. Whether you opt for a sole trader, partnership, company, or trust structure, your decision will influence how you manage employees, handle payroll, and comply with legal obligations.
“For instance, a company structure might require more formal HR policies and procedures compared to a sole trader setup. Understanding these nuances early on can prevent headaches down the line.
“With your structure in place, navigating Australian employment law becomes paramount. This includes understanding your obligations regarding fair work practices, awarding correct wages and entitlements like superannuation, and fostering a safe and healthy work environment.
“By proactively addressing these HR considerations, you’re not just mitigating risks, but also creating a workplace where employees feel valued and protected, which is essential for attracting and retaining top talent.”
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