How to register an ABN for your business: A complete guide for sole traders and companies

If you run a business in Australia, you may need to register an ABN. An Australia Business Number is a unique 11-digit number that identifies your business for tax and legal purposes. It helps with GST registration, invoicing and financial transactions. Without an ABN, you may face higher tax withholdings and limited business opportunities. Applying for an ABN is quick and free if you meet the eligibility requirements. This guide explains who needs an ABN, how to apply and what to do after registration. It also covers common mistakes and how to keep your ABN details up to date.

A quick guide to register an ABN

To operate a business in Australia, you may need an ABN. This number is essential for GST registration, invoicing and business credibility. You can apply online through the Australian Business Register. Make sure all details are correct to prevent delays or rejection.

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Why you need an ABN?

An Australia Business Number (ABN) is crucial for businesses in Australia. It provides legal recognition, simplifies tax processes and enhances business credibility. Below are the key benefits of having an ABN.

Legal and operational benefits

An ABN is required by law for businesses operating in Australia. If you sell goods or services for profit, you may need an ABN. However, not all businesses qualify. You must:

• Be carrying on or starting an enterprise in Australia.
• Make supplies connected with Australia.
• Be a registered company under the Corporations Act 2001.

An ABN is also needed for:

• GST registration (if turnover exceeds $75,000).
• Registering a business name or trademarks.
• Applying for tax concessions for not-for-profit entities.

Without an ABN, businesses may pay more tax and miss out on these benefits..

Taxation benefits

An ABN helps businesses manage tax obligations efficiently. Without one, businesses may have 47% of payments withheld for tax purposes. Key tax benefits include:

• Registering for GST to claim tax credits.
• Avoiding PAYG tax withholding on business payments.
• Applying for a Tax File Number (TFN) to lodge business tax returns.

An ABN simplifies tax reporting and compliance with the Australian Taxation Office (ATO).

Business credibility

Having an ABN makes your business look legitimate and professional. It helps build trust with clients, suppliers and financial institutions. Benefits include:

• Issuing invoices with an ABN to prevent payment delays.
• Registering a business name to trade under a professional identity.
• Signing contracts with suppliers and customers to establish credibility.

Many businesses may refuse to work with you if you don’t have an ABN.

Financial transactions and registrations

An ABN is often needed to open a business bank account and secure financing. Banks and lenders may require an ABN before approving business loans. Other financial benefits include:

• Applying for credit under a business name.
• Claiming tax deductions on business expenses.
• Registering for GST to claim input tax credits.

An ABN also helps businesses apply for industry-specific licences and permits.

ABN vs TFN vs ACN

An ABN is different from a Tax File Number and an Australian Company Number (ACN). The table below highlights their differences:

IdentifierPurposeWho Needs ItABNIdentifies businesses for tax and legal purposes.Sole traders, partnerships, companies and trusts.TFNIdentifies individuals and entities for tax filing.Individuals and businesses.ACNIdentifies registered companies in Australia.Companies registered with ASIC.

A sole trader needs an ABN and a TFN but does not need an ACN. A company must apply for an ACN before it can get an ABN.

Who needs an ABN (and who doesn’t)?

Not everyone needs an ABN. Some businesses must apply, while others do not qualify.

Who must register for an ABN?

You must apply for an ABN if you operate a business in Australia, including:

• Sole traders running their own business.
• Partnerships where two or more people share business ownership.
• Companies registered with ASIC that trade in Australia.
• Trusts that run a business or earn income.

Other entities that need an ABN include:

• Freelancers and independent contractors working for multiple clients.
• Import/export businesses trading with Australia or overseas.
• Not-for-profits that charge for services or operate like a business.

Who does not need an ABN?

You do not need an ABN if you are:

• An employee earning wages from an employer.
• A hobbyist selling products occasionally with no profit motive.
• An investor earning income from shares, property or savings.

Quick eligibility checklist

✅ You need an ABN if you:

• Sell goods or services for profit.
• Work as a freelancer, contractor or sole trader.
• Import or export products.
• Run a partnership, company or trust.

❌ You do not need an ABN if you:

• Only earn wages from an employer.
• Sell items as a hobby.
• Invest in shares, property or savings without running a business.

If you meet the business criteria, you must apply for an ABN. If unsure, check ABN Lookup or consult a business registration service.

How to apply for an Australia Business Number

Applying for an ABN is quick and free. You can apply online through the Australian Business Register (ABR). Follow these steps:

1. Gather required information

Before applying, ensure you have:

• Business structure (sole trader, partnership, company, trust).
• Tax File Number.
• Business name (if different from your legal name).
• Principal business location in Australia.
• Estimated turnover (if over $75,000, you must register for GST).

2. Submit an online application

• Visit the ABR website and select "Apply for an ABN".
• Enter business details, including structure and activity type.
• Provide your TFN and other tax details.
• Review and submit your application.

3. Application processing times

Processing TimeReasonImmediateDetails verified, no extra review required.Up to 28 daysABR needs more information or further checks are required.

If your application is delayed, check your reference number and track progress on the ABR website.

Register a business name after getting an ABN

If you trade under a name other than your legal name, you must register a business name. This helps build credibility and brand recognition.

IdentifierPurposeWho Needs ItABNIdentifies businesses for tax and legal purposes.Sole traders, partnerships, companies and trusts.Business NameThe trading name a business operates under.Any business that does not use the owner’s legal name.

How to register a business name

1. Check availability on the ASIC Business Name Register.
2. Register online via ASIC Connect.
3. Link your business name to your ABN for legitimacy.

Registration PeriodCost1 year$42 AUD3 years$98 AUD

Renew before expiry to keep your business name active.

How to check your ABN application status and reference number

After you apply for an ABN, you may need to check the status of your application. The Australian Business Register allows you to track progress using a reference number. If your ABN is delayed, checking for errors and missing details can help speed up the process.

Tracking your application using your ABN reference number

When you submit an ABN application, you receive a reference number. This number helps you track the status of your application.

To check your ABN application status:

1. Go to the ABR website and open the application tracking page.
2. Enter your reference number from your confirmation email.
3. Review the current status, which may show:
   • Approved: Your ABN is active, and you can start using it.
   • Pending: More checks are required before approval.
   • Delayed: Your application is under review due to missing or incorrect details.

If you do not have a reference number, check your email or spam folder for the confirmation message.

Common reasons for application delays

Some applications take longer to process due to extra verification checks. Your ABN may be delayed if:

• Your business details are incorrect: Mistakes in your name, address or tax file number can slow down approval.
• Verification is required: Trusts, partnerships and high-risk businesses often need further checks.
• Your information is incomplete: Missing details can prevent your ABN from being approved.

Checking that all details are correct before submitting your application can help avoid delays.

What to do if your ABN application is delayed

If your ABN is delayed, take the following steps:

• Check your reference number on the ABR website to see if more details are needed.
• Contact the Australian Business Register for an update.
• Ensure all information is correct by reviewing your application.
• Wait for processing – Some applications take up to 20 days if manual review is required.

If your application is still delayed after 20 days, contacting the ABR service team may help resolve the issue.

Updating or retrieving a lost ABN

If you lose your ABN or need to update your details, you can use the ABR portal.

• To retrieve a lost ABN: Use ABN Lookup on the ABR website.
• To update your details: Log into the ABR portal and change your business name, address or structure.

Keeping your ABN details accurate ensures compliance with the Australian Taxation Office (ATO) and prevents issues with business transactions.

Common mistakes to avoid when applying for an ABN

• Applying when not eligible (e.g., hobby businesses).
• Providing incorrect details, leading to delays.
• Choosing the wrong business structure (e.g., registering as a sole trader when operating as a partnership).
• Not updating ABN details when changing business name or address.
• Failing to register for GST if turnover exceeds $75,000.

FAQs: Register an ABN

What does the ABR do, and who manages the ABR?

The Australian Business Register stores and manages ABNs for businesses, sole traders, and companies. The Australian Taxation Office also manages the ABR and ensures businesses meet tax and reporting obligations.

How do I update my ABN if my business changes?

If your business changes, you must update your ABN details within 28 days. Use the business registration service to change your business name, address or structure.

How do I check the status of my ABN application?

Go to the ABR website and enter your reference number. If your application is delayed, refresh the page or check for errors in your details. If needed, contact the ABR service team.

What is the maximum time an ABN application takes?

If all details are correct, you may get your ABN immediately. If extra checks are needed, the maximum processing time is 20 days.

What are the things that are ready before applying for an ABN?

Before you apply, make sure you have the correct business structure, TFN, and principal business location. Having these things ready helps avoid delays.

Take the next step with Business Kitz

An Australia Business Number is essential for running a business legally. It helps with tax compliance, business credibility and financial transactions. You may face higher tax withholdings and limited business opportunities without an ABN.

Applying for an ABN is simple with Business Kitz. Our platform helps you streamline your ABN application by guiding you through each step. We ensure your business details are accurate to avoid delays and compliance issues. If you trade under a name different from your legal name, you can also easily register a business name.