How to register a pet grooming business

What is a pet grooming business? 

Pet grooming businesses provide grooming services for dogs and cats. These services range from essential tasks, such as bathing, nail clipping and hair trimming, through to breed-specific clips for the show ring and even doggy day spa services.

Pet grooming facts to consider

While a passion for animals is a prerequisite, there are a number of other skills and business considerations to take into account:

Training

Pet Grooming is a skill and you must be trained to do it professionally.

This is so that you can be efficient and do the right thing for your clients, and so that you don’t inadvertently cause injury to a pet that could result in financial trouble and also impact your business.

There are many courses available where you will be taught essential grooming skills, such as bathing, brushing, trimming. 

You will also learn how to keep equipment in good order, provide great customer service and how to run a salon.

Start-up costs

There will be costs associated with starting up a pet grooming business.

To determine the upfront costs you will need to decide whether you’re going to operate your pet grooming business from home, from within your current business or set up a mobile dog grooming entity.

Your business structure and the services offered will impact what basic grooming equipment you will need to purchase.

You will need to factor not only equipment but also the promotion of your business.

Revenue

Once you have figured out your start up costs, and your on-going costs, the next step is to work out how many pets you can groom in a day and what you are going to charge for each session. This will give you a realistic idea of your earning potential.

Business protection

It is also important to consider liability implications.

As a business owner you must consider injuries and accidents that can happen to you, your employees, the pets and your customers.

Animal welfare

Animal welfare extends beyond a love of pets. As a professional within the pet industry you must understand your duty-of-care responsibilities and ensure you uphold the well being of animals in your care.

The next step: A company or a Business Name

How to Register a Company in Australia: Everything You Need To Know

Company registration in Australia involves setting up a company as its own legal entity, which lets you conduct business throughout Australia.

You can also make use of other privileges, such as corporate tax rates or limited liability.

What are the requirements for company registration in Australia?

Step 1: Fill in a company registration form at Company123.
Step 2: Receive all company documents within minutes, sign and file.
Step 3: Receive your ABN, TFN and GST registration (if necessary) and begin operations.

What are the advantages of Registering a Company?

• Liability for shareholders is limited; As a general rule company carries legal and commercial risk as a separate legal entity which is separate entity to the shareholders/directors that control the company.
• It's easy to transfer ownership by selling shares to another party. Simple transfer forms can be completed to transfer the company shares to a new shareholder.
• Shareholders (often family members) can be employed by the company with flexible income tax rules on distribution of income. Enjoy the use of tax credits company pays which may be passed on to shareholders (i.e no double taxation on company profits in the hands of shareholders in most cases).
• The company can trade anywhere in Australia. A Private company can also trade in Overseas jurisdictions. Please consult your tax professional for additional tax advice.
• Taxation rates can be more favorable then personal individual tax rates. Private companies currently enjoy a flat 27.5% tax rate where annual turn over of a company is less than $50m.
• Enjoy access to Research & Development and Export Development Grant concessions which are generally available only to PTY LTD companies (not sole traders).

What are the disadvantages of Registering a Company?

• The company can cost more to establish, maintain and wind up then a sole trader business.
• The reporting requirements can be more complex; however the general advantages of a company often outweigh the additional compliance fees associated in running a company.
• Your financial affairs of the company are governed by ASIC and information about directors and shareholders can be viewed by public.
• If directors fail to meet their legal obligations, they may be held personally liable for the company's debts including profits distributed to shareholders are taxable. However tax credit that company pays may be available to the shareholders.

What information is needed to register a company online?

For online registration, you will need to provide the following information:

For Directors & Secretaries:

• Full name
• Full residential address
• Date and place of birth of each person

For Shareholders:

• Full name
• Address
  
• Number of shares for each shareholder of the company.

General Information: The address of the registered office and principal place of business.

You must get written consent from the people that will fill these roles:

• Director (must be over 18)
• Secretary (must be over 18)
• Member (every company must have at least one member).

Who can register an Australian company?

Anyone can, however you must have at least one director that resides in Australia and a physical Australian address for the registered office of the company. If none of the directors are eligible to work in Australia you will be able to register a company but you may not be able to trade.

If in doubt we recommend that you discuss your needs with an accountant or solicitor for professional advice. Company123 provides free consultations if needed and over the phone advice within business hours of 9-6pm at 03 9832 0660.

In terms of providing Australian directorships, Company123 cannot provide a registered office service or resident director service to international applicants. To find some providers do a search for 'resident director service Australia'.

How can Company123 register my company for me?

We are an ASIC registered agent, agent no. 34511

ASIC registered agents can lodge documents including company registrations on behalf of third parties.

We are also an ASIC accredited software provider. This means we have our own direct electronic link to ASIC, allowing us to lodge your registration at any time of day, any day of the week.

To get started with your company registration, fill in our online form.

For some more information on the registration process see the ASIC website.

What are your obligations as an officeholder?

If you're an officeholder of a company, you must follow the requirements in the Corporations Act.

This includes meeting your legal obligations , which includes:

• Ensuring company details are kept up to date
• Maintaining company records and details on the register
• Paying the appropriate lodging fees and annual review fees as required

Officeholders are ultimately responsible for a company's adherence to the Corporations Act. See the ASIC website for more.

A company can be formed with one person, as a proprietary company limited by shares can have one director and one share member who may be the same person.

Who can be a shareholder?

Individuals and other companies can be shareholders of your company.

A trust cannot own shares in a company because the law says a trust is not a separate legal person. For example, the 'John Smith Family Trust' cannot own shares or any other property.

Even so, the trustee of a trust, in his, her or its capacity as trustee, is capable of owning shares and other property.

Therefore, a trustee or a corporate trustee can own shares in a company - as long as you include the trustee's name and their capacity. In these cases, the trustee holds the shares in the company on trust for the beneficiaries of the trustee's own trust.

What is a Public Officer?

Under Australian taxation law, every company carrying on business or earning income from property in Australia must have a public officer – unless the company is specifically exempted.

The company decides who acts as public officer in accordance with its Constitution.

The company must appoint a public officer within 3 months of the company:

• Commencing to carry on business; or
• First earning income in Australia

If a company fails to appoint a public officer within the 3 month period, it is guilty of an offense for each day it does not have a public officer.

The public officer must be at least 18 and must live in Australia. They must also be capable of understanding the nature of their appointment.

The public officer deals with the Australian Taxation Office (ATO) in relation to the company's tax affairs and is responsible for ensuring that the company pays the correct amount of tax.

If a company is in default, then the public officer is liable to pay any penalties.

However, the public officer is not personally liable for payment of tax due by the company with the exception of certain liabilities such as superannuation payments due by a company and when it is not paid, Directors may be personally liable for unpaid superannuation of the company.

Additionally certain Pay As You Go (PAYG) Withholding obligations in relation to tax withheld on employees wages, directors may be personally liable if the company does not remit the liability to the Australian Taxation Office in timely and due manner.

With the exception of these liabilities all other debts of the company generally stay with the company unless the directors personally guarantee obligations to pay the debt for the company.

What name should I use for my company registration?

A company name is not compulsory.

The name of your company can be its Australian Company Number (ACN), the unique number automatically given to a company by ASIC when it’s registered. You can select to use the ACN as your company name when you complete your application and you won’t have to nominate a name.

During company registration in Australia, names can also be rejected for the following reasons:

• Contains certain words and phrases that cannot be used without the approval of a government minister; these include: bank, trust, Royal, Incorporated
• The name is considered offensive or suggests illegal activity

What is an ACN used for?

If your business is a company, then you'll need an ACN.

By law, an ACN must be shown on several documents, including:

• Accounting statements, such as invoice any documents you lodge with ASIC
• Receipts (if they're not machine generated, e.g., from a cash register)
• Orders for products and services
• Business Letterheads
• Official Company Notices
• Cheque, or any documents that represent a legal amount of payment.
• Written ads making a specific offer that can be accepted (such as by completing an order form)

If your company also registers for an ABN, then your ACN will form part of your ABN. In these cases, you won't need to display your ACN if your documents already display your ABN and company name.

You are automatically given an ACN when you register a company.

What is an ultimate holding company?

A company is an ultimate holding company of a wholly owned group if it has a subsidiary and the company is not a subsidiary of another company.

This means, the ultimate holding company owns or controls more than 50% of the shares in the subsidiary and can be referred to as the "controlling entity".

The key element is control. One company controls a second company if it has the capacity to determine the outcome of the decisions of the second company's financial and operating policies.

The ultimate holding company may have a few subsidiaries.

When should a company apply for an Australian Business Number (ABN)?

ABNs are not compulsory. However, there are many good reasons to have one, for example, ABNs help you:

• To deal with the ATO;
• In dealing with other businesses when supplying goods or services to them, or when purchasing goods and services
• Confirm your business identity to others when ordering or invoicing
• Avoid Pay As You Go (PAYG) tax on payments you receive.
• Claim energy grants credits
• Obtain an Australian domain name

Also, you need an ABN to register for GST.

Entities carrying on an enterprise in Australia with a GST turnover of $75,000 must register for GST.

To obtain an ABN, your company must:

• Be able to demonstrate that the business structure is in place;
• Be carrying on an enterprise in Australia;
• While carrying on an enterprise, make supplies connected with the indirect tax zone or have undertaken sufficient activities to commence an enterprise; or
• Be a Corporations Act company

What is GST?

Goods and services tax (GST) is a tax of 10% on the sale (supply) of most goods and services consumed in Australia.

In general, an organisation that is required by law to 'register' for GST purposes:

• Is required to pay GST to the Australian Taxation Office (ATO) if it sells something (ie, goods, services), and
• Can claim an 'input tax credit' from the ATO for the amount of GST included in the price of goods and services it purchase

Your organisation may be required by tax laws to pay GST on any goods and services it supplies.

Registering a Business Name

A registered business name helps customers find, identify and connect with your business. You can have multiple business names linked to your Australian business number (ABN).

If you want to trade your business under a specific name, you need to register it as a business name with the Australian Securities & Investments Commission (ASIC).

It’s an offence to carry on business under an unregistered business name unless you trade under your own name such as Mary Jones.

If you want your business to trade under a name that is different from your legal name, then you’ll have to register it as a business name.

You only have to register your business name once. The business names register is National and once registered, the business name can be used Australia wide.

Importance of a Business Name

 If you're in business, the name of your company is probably one of your most valuable assets. An effective name is one that establishes a strong identity and describes the type of business you're conducting.

It's not unusual for companies to go through one or more name changes as they grow.

Choosing a name for a company can be the first step in developing a new identity for the business and establishing a new image. It's the first impression the public will have of your growing company.

When choosing a business name, keep the following tips in mind:

• Choose a name that appeals not only to you, but also to the kind of customers you're trying to attract
• To get customers to respond to your business on an emotional level, choose a comforting or familiar name that conjures up pleasant memories
• Don't pick a name that's long or confusing
• Stay away from cute puns that only you understand
• Don't use the work "Inc." after your name unless your company is actually incorporated
• Don't use the word "Enterprises" after your name; this term is often used by amateurs

What is the difference between ‘trading name’ and ‘business name’?

‘Trading name’ is an old term, and now ‘trading name’ and ‘business name’ can be used interchangeably.

Specifically, a ‘trading name’ refers to an unregistered name that businesses could use before the introduction of the National Business Names Register on 28 May 2012.

A trading name is not a registered business name. If you wish to continue using a trading name, you need to register it as a business name.

The Australian Business Register and ABN Lookup still display unregistered trading names however they will be removed from November 2023 and only registered business names will be displayed.

A transition period from 28 May 2012 to 31 October 2023 is in place to allow businesses affected by the removal of trading names sufficient time to inform their customers, suppliers and other stakeholders of any changes to the name that they use to conduct their business.

‘Business name’ is the newest and most correct term and refers to names registered with ASIC after May 2012.

Business name refers to the title your business operates under.

You can register a business name here. 

When should I register a business name?

You will need to register a business name if you carry on business within Australia and are not trading under your own name.

Here are examples of when you need to register a business name:

• A proprietary limited company is registered with ASIC under its legal name Aaron Anderson Pty Ltd. The company wants to operate under the name ‘AZ Solutions’, so it must be registered as a business name
• Tessa Scott owns a florist business as a sole trader. Her legal name is Tessa Scott and she wants her business to be known as Scott’s Flowers.
• Sean Smith and Dominic Jones run a building business together, operating as a partnership. Their partnership’s legal name is Sean Smith and Dominic Johnson and they want their business to be known as Sean and Dom’s Building

When shouldn’t I register a business name?

Exceptions to needing a business name include:

• If you are operating as an individual and your operating name is the same as your first name and surname
• If you are in a partnership and your operating name is the same as all the partners' names, or
• If you are an already registered Australian company and your operating name is the same as your company's name

Here are examples of when you don’t need to register a business name:

• A proprietary limited company is registered with ASIC using its legal name Heather Collins Pty Ltd. As the company will operate under the legal name, it doesn’t have to register a business name. In fact, registering the company automatically registers the legal name as a business name
• Carol Sheaves runs a book-keeping business and operates as a sole trader. Her legal name is Carol Sheaves. Because she is happy to operate her business as a sole trader under her legal name, she doesn’t have to register her business name
• William Davis and Geoff Rice have a panel beating business together, operating as a partnership. Their partnership’s legal name is William Davis and Geoff Rice. They are happy to operate under their legal name, using all of the partners’ names, so they don’t need to register a business name

Can I change my business name?

You can’t update a registered business name, even if you only want to make a slight change to it

If you want to trade under a different business name, you must register a new one

You can either cancel your existing business name (if you don’t want to use it anymore), or keep your existing business name (in case you want to use it later or for a different part of your business)

Setting up a private company or a business name is easy.

Visit www.company123.com.au website where you will find useful links and information to register a company in under 5 minutes.

Company123 offers simple all inclusive solution whether you a business owner setting up a business or you run an accountancy or legal practice and set up companies for Clients.

Our support line is open 24/7 if you have any questions and we are always here to help and assist you with any of your questions.