Based in Sydney, Raja is a law student enrolled in a Bachelor of Laws and Bachelor of Communications (Writing and Publishing) at the University of Technology Sydney. He is passionate about transferring knowledge in relation to businesses, legal advice and marketing direction. Raja has experience working in immigration law and is driven by the writing, editing and publishing process of content.
Introduction
If you’ve ever been asked for an ARBN and panicked because you only have an ABN, you’re not alone. These acronyms look similar, sound similar, and cause a surprising amount of confusion for Australian business owners. But here’s the thing: they’re not interchangeable, and using the wrong one can create compliance headaches you don’t need.
So what exactly is the difference between an ARBN and an ABN? Let’s break it down in plain English.
Table of Contents
What is an ABN?
An Australian Business Number (ABN) is an 11-digit identifier issued by the Australian Taxation Office (ATO) to businesses operating in Australia. Think of it as your business’s tax file number. It’s used for GST reporting, invoicing, tax returns, and pretty much any interaction with the ATO.
Most Australian businesses need an ABN. Whether you’re a sole trader, partnership, company, or trust, you’ll likely need one to:
- Issue tax invoices
- Claim GST credits
- Avoid pay-as-you-go (PAYG) tax withholding
- Register a business name
- Apply for an Australian domain name
Getting an ABN is straightforward through the Australian Business Register, and it’s free. Once you have it, you use it across all your business dealings in Australia.
What is an ARBN?
An Australian Registered Body Number (ARBN) is also an 11-digit identifier, but it’s specifically for foreign companies that want to do business in Australia. It’s issued by the Australian Securities and Investments Commission (ASIC), not the ATO.
If your company was incorporated overseas but wants to operate in Australia, you need to register with ASIC and get an ARBN. This applies whether you’re a UK limited company, a US corporation, or any other foreign entity doing business on Australian soil.
The ARBN proves your foreign company is legally registered to operate here. Without it, you’re not compliant, and you could face penalties or be unable to enter contracts, lease property, or employ staff in Australia.
Key Differences Between ABN and ARBN
Here’s where the confusion clears up:
Issuing body: An ABN comes from the ATO. An ARBN comes from ASIC. Two different government agencies, two different purposes.
Who needs it: An ABN is for any Australian business entity, whether you’re a freelancer or a multinational. An ARBN is only for foreign companies that want to carry on business in Australia.
What it represents: An ABN is primarily a tax identifier. An ARBN is a registration number that allows a foreign company to legally operate in Australia.
Registration process: You apply for an ABN online through the Australian Business Register, usually within minutes. An ARBN requires registering as a foreign company with ASIC, which involves more paperwork, certified documents from your home country, and fees.
Can you have both? Absolutely. In fact, most foreign companies registered in Australia will have both an ARBN (from ASIC) and an ABN (from the ATO). The ARBN gets you registered to operate; the ABN gets you tax-compliant.
When Do You Need an ARBN?
You need an ARBN if your company is incorporated outside Australia and you’re planning to “carry on business” in Australia. ASIC defines this broadly, but it generally includes:
- Having a physical presence or office in Australia
- Employing staff in Australia
- Entering into contracts with Australian businesses
- Leasing or owning property in Australia
- Actively seeking or conducting business with Australian customers
Simply having Australian customers who find you online usually isn’t enough to trigger the requirement. But if you’re setting up operations, hiring locally, or establishing a physical footprint, you’ll need to register.
The threshold for “carrying on business” can be surprisingly low. Even temporary business activities, like sending representatives to Australia for extended periods or conducting regular business meetings on Australian soil, might trigger the registration requirement. ASIC takes a practical approach when assessing whether you’re carrying on business, looking at the substance of your activities rather than just their frequency or duration.
When Do You Need an ABN?
You need an ABN if you’re carrying on an enterprise in Australia. This covers almost every business activity, including:
- Running a company, partnership, or sole trader business
- Operating a trust for business purposes
- Charging GST on goods or services
- Claiming business tax deductions or GST credits
Even if you’re a foreign company with an ARBN, you’ll still need an ABN to handle your Australian tax obligations. The two work together: the ARBN registers you with ASIC, the ABN registers you with the ATO.
What Happens If You Get It Wrong?
Not having the right registration can cause serious problems:
Using an ABN when ASIC wants an ARBN: If you’re a foreign company and ASIC asks for your ARBN on a form or contract, giving them your ABN instead won’t cut it. You may be asked to provide the correct registration before proceeding, causing delays.
Operating without an ARBN: Foreign companies that carry on business in Australia without registering can face penalties from ASIC. You may also find that Australian businesses won’t contract with you, or banks won’t open accounts, until you’re properly registered.
Not having an ABN: Without an ABN, Australian businesses that pay you are required to withhold the top marginal tax rate (currently 47%) from your invoices. That’s money you won’t see until you lodge a tax return and claim it back, which creates cash flow problems.
Registering the wrong structure: Some business owners register as a sole trader (with an ABN) when they should have incorporated a company or registered a foreign entity. Fixing this later means re-registering, updating all your contracts, and potentially dealing with tax complications.
The confusion between ABN and ARBN often surfaces at the worst possible moments. You might be finalising a major contract, opening a business bank account, or responding to a government compliance notice when you suddenly realise you have the wrong number. These situations create unnecessary stress and can damage your professional reputation with clients or partners who expect you to have your registrations in order.
ARBN vs ABN: A Practical Example
Let’s say you run a software company incorporated in Singapore. You’ve signed a major client in Sydney and need to set up a local office and hire Australian staff.
Here’s what you need:
- Register with ASIC as a foreign company to get your ARBN. This involves lodging Form 402, providing certified copies of your Singapore incorporation documents, appointing a local agent, and paying ASIC’s registration fee.
- Apply for an ABN through the ATO once you have your ARBN. You’ll need the ARBN to complete the ABN application as a foreign company.
- Register for GST if your Australian turnover will exceed $75,000.
Now you can legally operate in Australia, issue compliant tax invoices, and meet your obligations to both ASIC and the ATO.
Common Questions About ARBN and ABN
Is ABN and ARBN the same?
No. An ABN is a tax identifier from the ATO for any Australian business. An ARBN is a registration number from ASIC specifically for foreign companies operating in Australia.
What is an example of an ARBN?
An ARBN is a nine-digit number formatted with spaces: 123 456 789. It appears on ASIC documents, contracts, and business correspondence for foreign companies registered in Australia.
Do you need an ARBN?
Only if you’re a foreign company carrying on business in Australia. Australian companies incorporated through ASIC get an ACN (Australian Company Number) instead. Sole traders, partnerships, and trusts don’t need an ARBN at all—just an ABN.
Understanding the Ongoing Compliance Requirements
Once you have your ARBN, your obligations don’t end with registration. Foreign companies must maintain ongoing compliance with ASIC, including annual reviews, updating changes to company details, and notifying ASIC of any changes to directors or registered office addresses in your home country. You’ll also need to maintain a registered office in Australia and appoint a local agent who can accept legal documents on your behalf. These ongoing requirements are separate from your tax obligations under your ABN, which means you’re effectively managing compliance across two different regulatory frameworks. Missing either set of obligations can result in penalties, so it’s crucial to stay on top of both ASIC and ATO deadlines.
Navigating ASIC and ATO Responsibilities
One of the most frustrating aspects of this topic is figuring out which agency handles what. Here’s the split:
ASIC responsibilities:
- Registering foreign companies and issuing ARBNs
- Maintaining the register of foreign companies
- Monitoring compliance with the Corporations Act
- Processing changes to company details, directors, or local agents
ATO responsibilities:
- Issuing ABNs to all business entities
- Managing GST registration and tax file numbers
- Collecting business income tax and GST
- Maintaining the Australian Business Register
When you’re dealing with company registration and structure, you’re talking to ASIC. When you’re dealing with tax, GST, or financial reporting, you’re talking to the ATO. Knowing which agency to approach saves time and reduces frustration.
Getting It Right the First Time
The best way to avoid confusion is to understand your business structure before you register anything:
- Australian sole trader or partnership? You need an ABN only.
- Australian company? You’ll get an ACN from ASIC and should apply for an ABN as well.
- Foreign company operating in Australia? You need an ARBN from ASIC first, then an ABN from the ATO.
If you’re uncertain about which category you fall into, getting professional advice early can save you from costly restructuring down the track.
How Your Registration Numbers Appear on Documents
Understanding where and how to display your ABN or ARBN is another common source of confusion. Your ABN must appear on all tax invoices, business correspondence, and your website if you’re registered for GST. For foreign companies with an ARBN, you’ll need to display both numbers in different contexts. The ARBN typically appears on ASIC forms, company registers, and when dealing with legal or regulatory matters. Your ABN appears on invoices, contracts, and tax-related documents. Some businesses display both numbers on their invoices to cover all bases, which is perfectly acceptable. The key is ensuring you’re using the right number for the right purpose and that both are clearly visible when required by law.
Final Thoughts
The difference between an ARBN and an ABN comes down to who you are and who you’re dealing with. If you’re an Australian business, your ABN is your go-to identifier for almost everything. If you’re a foreign company doing business in Australia, your ARBN proves you’re registered with ASIC, and your ABN handles your tax obligations.
Getting both registrations right from the start keeps you compliant, avoids penalties, and ensures your business can operate smoothly in Australia. And if you’re ever unsure which number applies to your situation, it’s worth checking with a professional before you fill out that form.
Ready to register your ABN? Get started with Lawpath today and make sure you’re set up correctly from day one.
