There are a list of important tasks to complete when starting a business. One of these things is an ABN. This article will go through the answers that you have been looking for.
If the business name holder is a joint venture you don’t need a separate ABN for the joint venture. Hence, you can apply to hold a business name as a joint venture as long as each entity in the joint venture has an ABN or an application reference number.
If the joint venture partner is:
- an individual, you will need to provide ASIC with information about the individual. For example; birth details and residential address.
- a company or registered body will need to provide ASIC with either the ACN or the ARBN of the company.
- If you are an incorporated entity without an ACN or ARBN, ASIC will ask you to appoint an organisation representative for that partner.
How can you register for an ABN?
You will need an ABN if you are starting a business. Enjoy the convenience of registering your business ABN through our services. We provide fast and easy solutions to your problems.
With an ABN you can manage to do a lot of activities:
- confirm your business identity to others when ordering and invoicing
- avoid Pay as You Go (PAYG) tax on payments you receive
- claim Goods and Services Tax (GST) credits
- claim energy grants credits
- obtain an Australian domain name.
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What kind of structures are available for a joint venture?
Businesses looking to expand into new markets or develop technology can do so more efficiently by opening another business. A joint venture describes a relationship between two or more parties working towards accomplishing a specific task. The main advantage of a joint venture structure is that it is very flexible.
Unlike other business structures, a joint venture if governed by less strenuous regulations. Furthe, a joint venture agreement sets out the rights and obligations of each party.
A joint venture has two main structures:
- Incorporated Joint Venture
- Unincorporated Joint Venture
Incorporated Joint venture
This structure requires that parties hold shares in the company in the joint venture. Further on, parties enter into a joint venture agreement. The agreement is similar to a standard shareholders agreement but also includes the other operational elements of a venture.
The new company can:
- own any property of the joint venture;
- manage the operations of the joint venture
- operate specifically for the purpose of the joint venture.
Unincorporated Joint Venture
The agreement under this structure will document the relationship between the parties. Each party owns a distinct share of the property of the joint venture.
A crucial consideration when choosing a joint venture structure are the tax consequences. We then would strongly recommend obtaining separate tax advice.
Conclusion
Having a ABN is an essential for businesses that are starting up. If the business name holder is a joint venture you don’t need a separate ABN for the joint venture. If you are experiencing trouble, it is better to consult a business lawyer.
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