# 4 Basic Requirements for Starting Your Business

Economies worldwide depend heavily on entrepreneurs for sustenance and growth. This dependence is because entrepreneurs are continually seeking new avenues to direct their ingenuity towards creating jobs and making money available to different classes of people in society as a result. In 2019 alone, around [355,000](https://www.statista.com/statistics/882101/australia-number-new-business-entries-by-industry/) new businesses entered the Australian market. Are you curious about what you will need to start your business and compete in the global marketplace? Here are four points to consider.

1. **Choose a business structure**  
   The structure you choose for your business has significant consequences on many aspects. Your regulatory obligations, liability level, tax obligations, the safety requirements you will be legally obligated to abide by, and your control level over the business are all determined by what type of business you decide to register. You can register your business as a partnership, sole trader, company, or trust. Apart from sole trader registration, every other business structure requires that you have a business bank account. Consider opening a [no fee business bank account](https://www.airwallex.com/blog/how-to-open-a-business-bank-account-in-australia) to provide a transparent financial record, track cash flow, and differentiate your business' income from personal spending.

2. **Business protection**  
   You should plan to secure your business against any forms of threats and risks. Insurance is a standard business protection strategy you can try. Workers' compensation insurance, public liability insurance, and third-party personal injury insurance are all compulsory for many Australian companies. You must review your operations to determine which insurance type the law requires you to satisfy. Intellectual property protection is also vital to securing your business. Therefore secure any patents, [copyrights](/content/learning/copyrited-images/index.html), or trademarks that are yours before you begin operating. Experts also recommend that you have protocols for securing business data, an emergency kit, among others. Prioritize meeting all these requirements to ensure that your business is safe from multiple threats.

For businesses in the hospitality industry, having the right insurance coverage is especially important. Restaurants face unique risks, such as foodborne illnesses, equipment damage, and liability claims from customers. Securing a policy like [Connecticut Restaurant Insurance](https://farmerbrown.com/restaurant-insurance-connecticut/) (or similar policies near you) can help restaurant owners protect their business from financial losses and ensure smooth operations even in unexpected situations.

3. **Business registration**  
   Registering your business is a standard requirement. Most states demand that you satisfy before you start operating. You will require a free-to-register 11-digit Australian Business Number (ABN) unique to your company in Australia. Your ABN is what the Australian Tax Office (ATO), your customers, and suppliers will use to identify your business. Additionally, you will need a company name and any required license and permits. It is illegal to operate an unregistered business in Australia, so it would be best fulfil all these requirements to avoid run-ins with the law.

4. **Study the law**  
   There are several mandatory regulations that the law requires your business to abide by, and many business experts recommend that you know these [laws](https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-business-and-environment-laws) to avoid infringing on any. The Competition and Consumer Act 2010 is one such law, promoting fair trade between competitors while ensuring that consumers receive proper treatment. Essential information such as market pricing, industry codes, regulations, and product safety are all enshrined in the laws, so acquaint yourself with them to prevent breaking the law unknowingly. Be sure to pay attention to local state and territory laws since each state may provide additional protection laws to which you are bound to comply.