How to Start a Business in Australia

Got an idea for a new business, app or an online platform? Australia’s startup scene is full of energy, with plenty of opportunities to grow a business. But turning a good idea into a scalable tech company takes more than just passion. It’s exciting, but it can also feel overwhelming, especially when you’re dealing with legal requirements and learning how business works in a new environment.

At Hyper, we’ve helped over 1000 startups launch across Australia and the UK, and along the way, we’ve learned what actually works and what doesn’t.

In this article, we’ll share the key insights, lessons, and strategies that have helped founders turn early-stage ideas into real, investable businesses.

Does Anyone Even Want This? (Validate First)

Before you get caught up in names, logos, or setting up a company, focus on what really matters: Do people actually want what you’re building?

Validation isn’t just another item on your to-do list. It’s the core of your whole startup. It’s what separates a product people love from one no one uses. The best ideas start with a clear, real problem and proof that people care about it.

Get clear on the problem

What specific issue does your product solve? Be honest with yourself. If the problem’s vague, it’s not going to work. The more focused and real the problem, the stronger your chance of building something useful.

Know your users

Who exactly in Australia would use this? What are they paying for now? What’s annoying or broken for them? The more you understand them, the better your product and business model will be.

Test it fast and cheap:

Talk to real people. Ask open questions. Don’t pitch. Just listen.
Look at what’s already out there. Who’s solving this problem now? Are they doing a good job? Is there a gap you can fill?
Build something simple, like a rough prototype or a quick landing page. Don’t worry about making it perfect. You just need feedback.

There are loads of free tools and guides out there to help: interviews, MVP tests, surveys and user analytics. Use them. Skipping validation is like trying to build a house with no plans.

Most founders get stuck here. That’s actually why we started Hyper almost 10 years ago, to help early-stage founders stop guessing and start validating before they waste time and money.

Pick the Right Business Structure

Your chosen business structure profoundly affects your tax obligations, personal liability, and your ability to attract business funding options. Here’s the simple breakdown and a quick business structure comparison:

Sole Trader – The cheapest option if you’re simply selling your time or services to another company. It’s easy to set up, and the reporting overheads are low, but you’re personally liable for all business debts. If you’re ever wanting to expand beyond just yourself, you’d want to set up an actual company (below).

Company (Proprietary Limited) – Nearly all businesses in Australia use this structure, and it is the most robust in terms of tax, liability and flexibility. If you want to grow your offering beyond just yourself, you’ll need one of these. Here are some of the benefits:

All companies have limited liability, which protects the personal assets of the directors. There are only a few circumstances that can break this (e.g. gross negligence, fraud, etc).
As a vehicle, it allows you to sell shares in your business to investors or offer to early staff as part of an ESOP benefits package..
Looks more professional, adding credibility.
Offers long-term stability and easier transfer of ownership.

There are other types, such as a partnership, trust and co-operative, but none of these make sense when structured as a business.

Register Your Business

Time to make it official, once your idea is validated and you’re ready to scale, here’s when and how to handle the legal stuff:

Get your director ID from the ABRS

Apply via ABRS (Australian Business Registry Services) using your myGovID before becoming a director; it’s free, linked to you forever, and legally required. Do this as soon as you plan to appoint directors.

Check name availability

Use ASIC’s name search to make sure your company name isn’t already taken or trademarked, reserving a name costs a small fee and ensures no surprises when you register. Reserve early if you’re still refining branding.

Get an ABN

Apply online through the ATO for your Australian Business Number. It’s free and essential for invoicing, GST, and credibility. Do it once your business model is solid, even before invoicing.

Register with ASIC to get your ACN

Use the Business Registration Service (BRS) to set up a proprietary limited company (Pty Ltd) and receive your 9-digit ACN. You’ll need this to trade as a registered company.

Register trading names if needed

If your branding differs from your company name, register a business name separately via ASIC, which links to your ABN and lets you operate under that name legally. You can do this right after securing your ABN.

When’s the right time?

After validation, you know people want and will pay for your product.
Before hiring or invoicing, especially if you’re bringing on directors or issuing tax invoices.
Before signing contracts, you want an ABN/ACN so you can do this formally and legally.

Understand Your Tax Obligations

Dealing with the ATO (Australian Taxation Office) is a fundamental part of how business works in Australia. Get these right from the start for sound business tax obligations:

Get a company TFN. Your company needs its own Tax File Number, separate from yours.
Register for GST (Goods and Services Tax). You generally need to if your turnover hits $75,000, or you can do it early to claim back GST on expenses, a common small business tip for cash flow.
Set up PAYG (Pay As You Go) if you hire staff. You’ll need this to handle their income tax withholding.
Lodge BAS (Business Activity Statements). This is how you report your GST, PAYG, and other taxes regularly.
Keep records. Use cloud accounting tools (like Xero, MYOB, QuickBooks) for efficient business finance basics. We typically recommend Xero.

Get Your Legal Docs in Place

Having the right legal framework from the start, with help from Cake, can prevent costly disputes and give you clarity as your tech business grows in Australia. Cake helps you manage your cap table, issue equity to employees and investors, stay compliant, and stay investor-ready, all in one platform.

Founders’ agreement – If you have co-founders, this is vital. It covers roles, equity, and what happens if someone leaves.
Shareholders’ agreement – For companies with multiple owners, this covers share transfers and dispute resolution.
Website terms and privacy policy. Especially critical if your tech product collects personal data, fulfilling important business legal requirements.
Client contracts. Clear, simple agreements protect both you and your clients.

Set Up Your Finances

Sort out your finances right from the beginning. It might feel like overkill early on, but it’ll save you a ton of hassle later, especially at tax time.
Open a business bank account. Keep your personal and business money separate. It’s cleaner, easier to track, and just makes you look more legit.
Use accounting software. It simplifies tracking everything. Xero is popular, but use whatever helps you keep track of what’s coming in, what’s going out, and what you owe. You don’t want to be scrambling through old invoices and receipts down the track.
Build forecasts – know your startup costs, revenue targets, and projected cash flow. This forms a core part of your business plan guide. Start thinking about your numbers. How much is it going to cost to get going? What do you need to make each month to stay afloat? Cash flow matters more than most new business owners realise.

Explore Funding Options

Figuring out how to fund your business is one of those things you can’t avoid, no matter how early you are. And in Australia, there are actually a few decent options out there. You don’t need to pick one straight away, but it helps to know what’s on the table.

You can start with your own money. That’s what a lot of people do — just use savings or whatever small bit of money the business makes early on. It’s hard, but you keep full control, and you don’t have to explain yourself to anyone.
Then there are angel investors. These are usually people who’ve run businesses before and want to back someone new. They’ll give you some money, but what’s often more useful is their advice and contacts. A good angel can really change your path.
Venture capital is a bigger step. That’s for businesses aiming to grow fast, especially in tech. VCs bring in serious money, but they’ll also expect results and a piece of the business. If you’re going down that road, know what you’re signing up for.
You should also look into government grants. The R&D tax incentive is a big one, especially if you’re working on something new or innovative. There are others, too, depending on the state you’re in and what industry you’re in. They take time to apply for, sure, but the money can help, and you don’t lose any ownership.
Crowdfunding’s also something people forget about. If you’ve got an idea that regular folks can get behind, it’s a way to raise money and also test if anyone actually cares about what you’re doing. Plus, it builds a bit of buzz.

None of these is perfect. Some come with strings. Some take time. Some ask you to give up a part of what you’re building. But if you’re clear about what you want and what you’re okay giving up, there’s usually a way to make it work.

What’s Next? Your Journey with Hyper.

Starting your tech business in Australia doesn’t have to be overwhelming. At Hyper, we help first-time tech founders avoid common pitfalls and accelerate their journey. We guide you through everything: validating those brilliant ideas, building crucial MVPs that prove demand, navigating company registration in Australia with ease, and connecting you with the right business funding options.

We’ve proudly helped over 1,500 founders, just like you, turn their tech dreams into reality, supporting them in raising over $482 million in capital. We understand what business is at its core and how to make your type of business thrive.