Business registration numbers explained: ABN, ABRN and ACN

Operating a business in Australia involves navigating a variety of regulatory requirements, including obtaining the appropriate business registration number.

For newcomers and even seasoned entrepreneurs, the landscape of registration numbers can seem complex and overwhelming. From the Australian Business Number (ABN) to the Australian Business Register Number (ABRN) and the Australian Company Number (ACN), each identifier serves a specific purpose within the Australian business framework.

In this article, we will unravel the mystery surrounding these business registration numbers, shedding light on topics such as their individual functions, whether they are obligatory to obtain, how to acquire them, the consequences of not having one and the process of cancellation.

1. What is an Australian Business Number (ABN)?

An Australian Business Number (ABN) is a unique 11-digit identifier assigned to businesses operating in Australia. It serves as a common business identifier across various government agencies and facilitates interactions with other businesses. The ABN is administered by the Australian Taxation Office (ATO).

Each ABN is unique to a specific organisation, ensuring that no two entities have the same identifier. This uniqueness eliminates confusion within the commercial environment as it allows for accurate identification and differentiation between businesses. This makes it easier for government agencies, suppliers and customers to interact with them.

When running a business, you will use an ABN to:

Identify your business to third parties, such as customers, clients, partners and stakeholders
Claim goods and services tax (GST) credits
Avoid PAYG tax on payments that you receive
Claim energy grants credits
Obtain an Australian domain name

The ABN was introduced in 2000 as part of a broader tax reform, including the introduction of GST. The relevant legislation is the A New Tax System (Australian Business Number) Act 1999(Cth).

1a. Who needs an ABN?

Not everybody needs an ABN. You are entitled to obtain an ABN if:

You’re starting or carrying on an enterprise in Australia
You are a company registered under the Corporations Act 2001(Cth)
You are making supplies connected with Australia’s indirect tax zone (which is Australia but not its external territories or particular offshore areas)

We will explore each of these points in some further detail below.

Note that you may face criminal penalties or charges if you apply for an ABN (and then subsequently register for GST and claim GST refunds) if you are not entitled to do so.

“Carrying on an enterprise”

You will be entitled to obtain an ABN if you are carrying on an ‘enterprise’ in Australia. An enterprise essentially includes activities done as a business, as well as other activities like operating a charity or leasing a commercial property.

There is no single, strict test to determine whether or not you are carrying on a business for the purposes of working out if you are entitled to apply for an ABN. Some features recognised of a business includes:

The presence of a single commercial activity (such as selling products and services) which is reasonable sized and scaled
The intention behind the enterprise is to make a profit (and is not merely a hobby)
The activity is repeated, systematic, organised and carry on in a ‘business-like way’, such as through the keeping of records

Not that you are not entitled to apply for an ABN to work as an employee, even if your employer deems it to be contracting. An employer generally should never ask you to obtain an ABN as a condition of your employment with them.

Also, renting out residential properties will generally not give rise to the need to apply for an ABN. This is because renting out residential property does not usually give rise to an obligation to pay GST or PAYG.

“Starting an enterprise”

Maybe you haven’t actually started a business yet, but you’re in the process of doing so. You will be entitled to apply for ABN if you’re undertaking commencement activities such as:

Advertising your products, setting up a website or social media account
Buying stationery or business cards
Applying for finance for the business
Issuing quotes or making bids for projects
Purchasing insurance policies for your business (like professional indemnity or public liability insurance)

There is no requirement to conduct all these types of business. But you will be expected to have done some of them.

Company registered under theCorporations Act 2001(Cth)

You will need an ABN if you are a registered company under Australian corporations legislation. You will also need an ACN (which we will explore in further detail below).

Foreign businesses in Australia

Foreign companies may also be entitled to an ABN if they are carrying on an enterprise in Australia or carrying on an enterprise involving making supplies connected with Australia’s indirect tax zone.

1b. How do you register for an ABN?

To register for an ABN, there are a few steps you will need to take.

Determine your eligibility

Before proceeding with the registration process, ensure that you meet the eligibility criteria for an ABN. You can follow the guidelines above to help you determine if you are eligible.

Ask yourself whether you already have an ABN

You can reactivate a former ABN you used to use by applying for a new number. The application process (outlined in step 4 below) will ask you to list your previous ABN. Once you do that, the ABN will reactive if your business structure has not changed and you are still eligible.

If you don’t already have an ABN, continue the steps below.

Gather required information

Collect the necessary information and documentation needed to complete the registration. This typically includes details about your business structure, business name, contact information and the nature of your business activities.

Complete the application process online

Access the Australian Business Register website (https://abr.gov.au) to initiate the registration process. On that website, select the option to register for an ABN and start the online application.

You will need to follow the prompts and provide the required details about your business.

At this time, you may have the opportunity to apply for other registrations, such as Goods and Services Tax (GST) or Pay As You Go (PAYG) withholding. Determine if these registrations are applicable to your business and proceed accordingly.

Submit your application

Carefully review all the information you have provided to ensure accuracy. Once you are satisfied, submit the application.

After submitting the application, you will receive a reference number. Make a note of this number as it will be important for tracking the progress of your application.

Await ABN Confirmation

The processing time for an ABN application can vary. You will receive a confirmation email or letter from the Australian Business Register once your ABN has been assigned. This confirmation will contain your ABN and relevant details.

Obtaining an ABN is free of charge. So be cautious of third-party service providers that may offer ABN registration for a fee.

If you require assistance or have specific questions during the registration process, you can contact the Australian Business Register directly or seek professional advice from an accountant or business advisor.

1c. How to update or cancel your ABN

It is important that your ABN details are kept up to date on the Australian Business Register. This includes information such as who owns the business, your address, your contact information and your status of GST registration.

You will need to update the details on the ABR within 28 days of the change occurring.

If you want to cancel your ABN, then you’ll need to let the ABR know, and double check the register to ensure that your ABN says ‘cancelled’.

If you want to change the structure of your business (such as converting from a sole trader into a company), then you may need to cancel your current ABN and apply for a new one. You can obtain more information about this here: Australian Business Register | Changing your business structure.

1d. Consequences of using an invalid, incorrect or no ABN

If you use an incorrect or invalid ABN, or don’t use your ABN in certain circumstances, then there can be significant consequences for you and your business. These are as follows:

No ABN Withholding- if you do not quote an ABN when paying an expense is over $75 (excluding GST), then you will be required to pay the top tax rate - which is nearly half the entire payment. See:ATO |Withholding if ABN not provided.
Imprisonment -Using the wrong ABN can attract up to two years’ jail time. This happens much more often than originally thought. In 2017, it was discovered that thousands of suspicious transactions occurred using the ABN of Bunnings Warehouse. See: AFR| Jail time needed to end Bunnings ABN scam.
Penalties -if a person is found to have misled the ATO when applying for an ABN, then you can be penalised considerably - up to tens of thousands of dollars.

2. What is an Australian Company Number (ACN)?

An Australian Company Number (ACN) is a unique nine-digit identifier assigned to registered companies in Australia. It serves as a key identifier for companies operating under the Corporations Act 2001(Cth). The ACN is administered by the Australian Securities and Investments Commission (ASIC).

Similar to the Australian Business Number (ABN), each ACN is unique to a specific registered company. This uniqueness ensures that no two companies have the same identifier, facilitating accurate identification and differentiation in legal and business contexts. The ACN is an integral part of a company’s identity and is commonly used in official documentation, contracts and financial records.

Just like the ABN, the ACN assists with eliminating confusion by clearly identifying and distinguishing one company from another, making it easier for stakeholders, such as shareholders, creditors and regulatory bodies to refer to and interact with the company.

The introduction of the AVN in the 1990s arose an escalating concern regarding the potential for misidentification or confusion arising from the abundance of similar or misspelled company names. Measures were therefore taken to address this issue and mitigate the risks associated with the growing corporate landscape.

2a. Who needs an ACN?

An ACN is required for companies that operate as registered companies under the Corporations Act 2001. This includes:

Proprietary companies (Pty Ltd companies) - these are the most common type of company structure in Australia. All proprietary companies, regardless of their size, must be registered with ASIC and obtain an ACN.
Public Companies (Ltd): Public companies can offer their shares to the public and may be listed on a stock exchange. All public companies are required to be registered with ASIC and have an ACN.
Foreign Companies: Foreign companies that wish to establish a presence or conduct business in Australia are required to register with ASIC and obtain an ACN. This includes companies incorporated overseas that operate in Australia and also subsidiaries of foreign corporations.

Note that certain entities, such as sole traders, partnerships, and trusts, do not require an ACN. This is because they are not classified as companies under the Corporations Act 2001. Instead, these types of entities may require other registration numbers or identifiers, such as an ABN (as explained above) or Tax File Number (TFN), depending on their specific circumstances and obligations.

If you are unsure whether your entity falls under the company structure or if you need an ACN, it is advisable to seek professional advice from an accountant, lawyer, or business advisor who can assess your situation and provide appropriate guidance based on your specific circumstances.

You can also read more information on ASIC’s website: ASIC | Australian Company Numbers.

2b. How to obtain an ACN

You will receive your ACN when you set up a company, which you can do through ASIC.

Registering a company in Australia (and receiving your ACN) costs $538 at the time of writing but the cost increases at the beginning of each financial year. Make sure you check the ASIC website for the latest applicable fees and charges.

2c. Where must your ACN be displayed?

Section 153 of the Corporations Act 2001(Cth) says that the ACN must appear on the front page of every public document and negotiable instrument issued by a company (although note there are exceptions). Some of these documents include:

Documents lodged with ASIC
Official company notices
Business letterheads
Receipts not produced by a machine
Statements of account
Written advertisements that make a special offer
Cheques, bills of exchange and promissory notes
Common seal (if any)
Invoices
Statements of account

The ACN must be clear and easily readable. It also needs to be obvious as to what company it belongs to.

Note, however, that if your company has an ABN (explained above), then you can use that instead of your ACN on your documents. You’ll just need to ensure that your ABN includes your ACN and that your ABN is placed in the same locations that your ACN is used.

Failure to comply with these regulations are an offence under the Corporations Act 2001 (Cth) which may attract penalties.

2d. Is an ACN required on all my documents?

No. There are certain documents where an ACN is not required.

This includes:

packaging and labelling (such as envelopes and transport documents)
advertisements that don’t make a specific offer (like general advertisements which only promote your company)
credit cards and credit card vouchers
receipts generated by a machine (such as cash-register receipts)
business cards
‘with compliments’ slips,
items which are not actually documents (such as TV advertisements and vehicles)

3. What is an Australian Registered Business Number (ARBN)?

Some companies are based overseas but wish to operate in Australia.

The Australian Registered Body Number (ARBN) is a unique identifier assigned to certain types of these non-Australian companies that operate in Australia. It is administered by the Australian Securities and Investments Commission (ASIC). These companies will typically be registered and regulated in another country, but have a presence or conduct business operations within Australia.

Obtaining an ARBN allows non-Australian companies to participate in Australian business activities and access the Australian market. It provides them with a recognised presence and enables compliance with certain legal and regulatory requirements applicable to foreign companies operating within the country.

The ARBN, however, is also issued to some Australian associations who are not necessarily companies. These are known as “Registrable Australian Bodies”. This includes organisations such as incorporated associations (who often include charities).

It’s important to note that the ARBN is distinct from the Australian Business Number (ABN) and the Australian Company Number (ACN).ABN is for Australian businesses, while ACN is for registered Australian companies. The ARBN specifically applies to non-Australian companies operating in Australia or those “Registrable Australian Bodies”.

3a. Who needs an ARBN?

ARBNs are issued to foreign companiesand ‘Registrable Australian Bodies’.

Foreign companies - if your business is based outside of Australia and wish to do business inside Australia, then you’ll need to register with ASIC. As part of this process, you will receive an ARBN.

You can read more about the process of registering as a foreign company here: ASIC | Foreign companies

‘Registrable Australian Bodies’ - these are not separate legal entities in their own right - rather certain legal entities (such as companies) can apply to become Registrable Australian Bodies. For example, some organisations are incorporated as an ‘association’ and can only legally do business in their own ‘state’ unless they apply to become Registrable Australian Bodies under the Corporations Act.

You can read more here: ASIC | Registrable Australian Bodies

3b. How to obtain an ARBN

You will receive your ARBN when you register as a foreign company or become a Registrable Australian Body with ASIC.

4. How to find an ABN, ACN or ARBN

4a. ABN Lookup

You can search for an ABN or ACN on “ABN Lookup”, which is the free public viewer operated by the Australian Business Register at https://abr.business.gov.au/.

You can type in a company name, trading name, ABN or ACN in the search bar and you will be able to see a list of matches to your search. Note that, from 1 October 2023, trading names will no longer be displayed.

4b. ASIC Connect

You can search also search for ABN, ACN or ARBN on ASIC Connect here: https://asicconnect.asic.gov.au/public.

On the home page, you will need to select “Organisations and Business Names” in the top right bar, before searching a name or number in the immediate bar below. This will then give you the results that match your search.

On ASIC Connect, you can also find more details about a company, including its:

Registration date
Status (for example, whether or not it is in liquidation)
Address
Directors
Shareholders
Documents it has lodged with ASIC