When conducting business in Australia, you will encounter identifiers like Australian Business Number (ABN), Australian Company Number (ACN), and Australian Registered Body Number (ARBN). Understanding the distinction between these business registration numbers is crucial for ensuring proper identification and compliance. This article examines each number in detail, explaining its purpose, who needs it, and how it relates to the others.
Key takeaways
- ACN (Australian Company Number) is a unique nine-digit identifier issued by ASIC for companies in Australia, required on various documents to signify legal compliance and identity.
- An ABN (Australian Business Number) is an 11-digit identifier issued by the Australian Business Register. It aids in confirming business identity, tax management, and claiming GST credits for eligible entities like sole traders, partnerships, companies, and trusts.
- ARBN (Australian Registered Business Number) is a unique nine-digit number assigned by ASIC to entities not registered as companies. Foreign companies must register with ASIC, enabling them to apply for an ABN and meet display requirements on public documents.
Australian Company Number (ACN)
What is an ACN?
After your company is registered, it will receive a unique nine-digit number called the Australian Company Number (ACN). This number is issued by the Australian Securities and Investments Commission (ASIC) to identify a company. Upon registration, you will automatically receive your ACN, which remains the same even if your company changes its name or is deregistered.
Who can get an ACN?
Only companies are eligible for the ACN. Sole traders and partnerships are not entitled to register for an ACN.
Where must the ACN be displayed?
The ACN must appear on the following documents:
- All documents lodged with the ASIC
- Business letterheads
- Cheques, promissory notes and bills of exchange
- Official company notices
- Orders for services or goods
- Receipts that are not machine-produced
- Statements of account, including invoices
- Written advertisements making a special offer
- Common seal (if any)
The ACN is not required to be displayed on the following:
- Packaging and labelling
- Advertisements that do not make a special offer
- Credit cards and credit card vouchers
- Machine-generated receipts
- Business cards and compliment slips
- Items that are not documents
Australian Business Number (ABN)
What is an ABN?
An Australian Business Number (ABN) is an 11-digit unique identifier for businesses and individuals engaged in business activities.
Issued by the Australian Business Register (ABR), operated by the Australian Tax Office (ATO), an ABN generally comprises your ACN with a two-digit prefix.
With an ABN, you can:
- Confirm your business identity to others when ordering and invoicing
- Avoid Pay As You Go (PAYG) tax on payments you receive
- Claim Goods and Services Tax (GST) credits
- Claim energy grants credits
- Obtain an Australian domain name
ABN qualifications
The following entities are entitled to register for an ABN:
- Sole trader
- Partnership
- Company
- Trust
Where must the ABN be displayed?
An ABN must be displayed on the following:
- Public documents
- Cheques and negotiable instruments
- All documents lodged with the ASIC
- Receipts and invoices
- Common seal (if any)
According to the ATO, if the ABN is not displayed on an invoice and the total payment for goods and services exceeds AUD 75, the top withholding tax rate will be withheld.
Applying for an ABN
The ABR issues the ABN. When applying for an ABN, directors who are Australian residents must provide their tax file number (TFN) for identification purposes.
Non-resident directors must provide certified copies of identification documents. Non-resident shareholders must also provide certified copies of their identification documents (for individuals) or a certified copy of their certificate of incorporation if the shareholder is a corporation.
This process can take several weeks, so being proactive with these documents is essential if time is an issue. These documents are often required for other purposes, such as opening an Australian bank account.
Cancelling the ABN
You will need to cancel your ABN in the following situations:
- Closing your business
- Changing the business structure
- Sole trader to a company
- Sole trader to a partnership
- Partnership to a company
- Not operating the business
Australian Registered Business Number (ARBN)
What is an ARBN?
Australian Registered Body Number (ARBN) is a unique nine-digit number issued by ASIC to entities registering with them but not as companies. Foreign companies registering with ASIC are assigned an ARBN instead of an ACN.
Entities with an ARBN can also apply for an ABN.
ARBN display rules
Under the Corporations Act, the ARBN must be displayed on all of the body’s public documents, including negotiable instruments published and signed in Australia.
Conclusion
Understanding the roles and differences of ABN, ACN, and ARBN is essential for businesses operating in Australia. These registration numbers facilitate legal compliance and enhance business transaction transparency, credibility, and efficiency. Whether registering a new business or expanding operations into Australia, companies must adhere to the relevant registration requirements and leverage these identifiers to navigate the Australian business landscape effectively.
How Acclime can help
If you need further guidance on navigating these requirements and understanding how ABN, ACN, and ARBN apply to your specific situation, contact Acclime. Our team of experts can help ensure a smooth and compliant entry into the Australian market and compliance after that.
Disclaimer
This information is of a general nature and is not intended to address the circumstances of any particular individual or entity. We would recommend addressing your specific circumstances as relates to these items with a suitable qualified expert.
