The importance of ABN Registrations and ACN Numbers
When applying for a business company in Australia what you will be issued with is an Australian Company Number and it will be specifically for the company alone and it is suppose to be different from ABN Registrations. Once the company application is approved you will get your ACN issued by the Australian Securities and Investments Commission. ABN Registration are normally issued by Australian business register and ACN is issued by ASIC.
The government of Australia uses ABN number to be able to verify details of your company which help in streamlining communication within government agencies like taxation department effectively. Using the ABN look up the public can also help in verifying all your company details using the Internet. This is very useful to you especially if you are dealing with a certain company and when it reaches a point of correcting the name of the invoice.
If your business has an ACN there is no need of obtaining an ABN. Thou there are circumstances where an ABN is necessary. In situations like when the annual turnover of a company is over dollar seventy five the law requires that you have to register for the goods and services tax (GST). In order to register for GST the company is required to supply ABN to the Australian Taxation Office. But if the company has a turnover of less than dollar seventy five then ABN registrations for ABN and GST is optional.
For companies which are non profit organizations with an annual turnover of less than dollar one hundred and fifty thousand and even more than this figure, then it is vital for the company to register for GST purposes and ABN. If a company has a ABN it will prevent other entities from deducting the pay as you go and this will withhold tax from the payments which are suppose to be for the company. Another advantage is that the company can be able to claim more like energy grants. It provides a clear indification for other businesses and companies so that they can be able to contact you. Also the ABN is vital because it makes work easier for the company when it comes to dealing with government agencies and in conducting its business with different type of entities as well.
Applying for ABN Registration is a very simple procedure. What you need is Internet access, a computer and following the right procedure. The process is free no website is suppose to charge you. After you finish the ABN application process online the company ABN number might be released straight away.
