Naming and Registering the Business
Question:
Discuss about the Research and Comply with Regulatory Requirements.
There are various companies and businesses that are functioning in the current environment and every business that operates are with the idea of earning profit and increasing their sales in the market. The business that is established is constructed by looking at the demands in the market so that the business can function effectively.
However, opening a business is not that easy. There are certain rules and obligations that one must follow in order to successfully initiate a business in the market. The entrepreneur of the business has to fulfill all the formalities and get their business registered in order to start transacting in the market (Chesbrough 2013).
The current concentrates on constructing a sports bar and café in Melbourne city in Australia and the paper will provide in-depth knowledge about the various regulations, rules and permits that one needs to receive in order to successfully start the business.
Ricky is a retired head chef of a renowned restaurant in Australia. He always had the idea of opening his own business once he retired. Ricky is a diehard sports lover and is interested in any types of sports. He has constructed a plan of opening a sports bar and café where people can enjoy live matches along with some refreshments and food with their friends and families. He has sufficient savings to start the business and wants to construct a small building in his unused land in Melbourne. The following are the rules and regulations that Ricky requires to follow in order to successfully start his business.
The primary task of the entrepreneur is to name the business he wants to start. The best to name a business is that the name should be memorable and is very easy to pronounce. The name needs to be original and should not be a copy of any other organization and requires being functional in nature (Fuller 2016). It is ideal to select a few names and shortlist a few out of them. After the names has been shortlisted, it is the duty of the entrepreneur to go through a check through the Business Name Register to find out whether names he has selected are currently operational or the name has been registered by some other company earlier. Once the check is done, the most suitable name is chosen and is presented forward for registration.
The other task that requires to be done by the entrepreneur before registering the name is to obtain an Australian Business Number (ABN) that can be collected from the Australian Business Register (Christensen and Raynor 2013). The ABN helps the businesses functioning in the country to communicate with the various departments of the government and their agencies with the use of a single number. This number is the identity of a company in the eyes of the government.
Building Regulations
There is a requirement of a Building Permit in this scenario as the entrepreneur has planned to open a sports bar and café. Therefore, there is a requirement to construct a building and to start the construction the entrepreneur needs to attain all the relevant licenses that are necessary (Pearson 2016). The business even requires a Asset Protection Permit from the local government as this permit will protect the business from any injuries or damages to the roads and footpaths during the construction process. It is essential to check that the planning permit and the business permit contain the same details.
Building Regulations
Planning Permit
A Planning Permit is necessary for Ricky as it was mentioned earlier that Ricky wants to start his business by constructing a building on his unused land. As he is constructing a building to start his business it is mandatory to obtain a planning permit. The Planning Permit is established by the State Legislations and are supervised by the local government (Dunn 2015). The time of approval of the permit is dependent on the requirements that are presented by the entrepreneur in their plan.
Third Party Insurance
Insurance is a significant aspect for every business and the insurance policies must be transformed and updated as the business progresses Every business is associated with various types of risks and therefore it is important for the entrepreneur to get their business insured so that they may claim for any financial compensation in case of any loss. The business should start their insurance once they start their business process (Prahalad and Ramaswamy 2013).
The business needs to maintain their health and safety regulations in order to operate efficiently in the market. The business needs to comply with the health and safety regulations put forward by the Occupational Health and Safety Act 2004 and needs to construct their plan efficiently. The business needs to make preliminary precautions and maintain all the health and safety tools in the business premises so that in case of any accidents, the business can handle the initial effect (Havinga and Verbruggen 2017). It is a primary concern for every business to look at the safety of the employees and therefore the business needs to maintain safety measures for their employees.
Liquor License Regulations
The present paper shows that Ricky wants to open a sports bar and café and therefore they will be requiring a liquor license. The Liquor License needs to be gathered from the Victorian Commission for Gambling and Liquor Regulations. The application for the license to the commission is forwarded by the commission to the Local Council where the Council makes comment (Glover and Kusterer 2016). The council in some instances may ask the business to apply for a planning permit. In this scenario, the council will not ask the same as the business had earlier applied for the planning permit before undertaking the business.
The business will be undertaking financial transaction by selling its customized product on the market. GST registration is optional if the GST turnover of the business is below $75,000. However, a business can even apply for GST registration even if their turnover is below $75,000 and in that case the company has the right to include GST fees within the cost of the product they are selling (Bocken et al. 2014). In case of this business, the GST will be charged on the overall billing amount of the customers. GST registration can be done by making an application in the Australian Taxation Office.
Taxation Requirements
The company after registering from GST is only liable to pay the housing tax and the corporation tax for the business they undertake,
Legal Advice Required
It is essential for the entrepreneur to appoint a lawyer or a solicitor who can aid positive advices and can even help during the registration process of the business.
Compliance Needs
There are various requirements of compliance in a business like the internal needs for the operation of the business like establishing a management structure and the organizational structure that needs to the followed by the company. The other requirements include keeping clear record of their transactions; the external government requirements include preparation of annual reports and payment of franchise tax if deemed necessary (Hatten 2015).
The penalties for non-compliance with respect to the internal part are dependent on the owner of the business and he or she may decide the penalty. On the other hand, external penalties are levied by the state authorities and the amount can vary from a small one to a huge amount depending upon the level of mistake.
Specialist Advice
There is need for specialist advice with respect to construction of the business plan and estimating the tax the company needs to pay. Advice can even be taken with respect to the permits that requires for the business to take.
Conclusion
The current paper therefore, discusses about all the legal requirements and the procedure that is essential in order to start a new business and the process discussed can be useful for Ricky to commence his business of a sports bar and café in Melbourne.
References
Bocken, N.M.P., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review to develop sustainable business model archetypes. Journal of cleaner production, 65, pp.42-56.
Chesbrough, H., 2013. Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Christensen, C. and Raynor, M., 2013. The innovator’s solution: Creating and sustaining successful growth. Harvard Business Review Press.
Dunn, E.C., 2015. Privatizing Poland: Baby food, big business, and the remaking of labor. Cornell University Press.
Fuller, G.W., 2016. New food product development: from concept to marketplace. CRC Press.
Glover, D. and Kusterer, K., 2016. Small farmers, big business: contract farming and rural development. Springer.
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson Education.
Havinga, T. and Verbruggen, P., 2017. Understanding complex governance relationships in food safety regulation: The RIT model as a theoretical lens. The ANNALS of the American Academy of Political and Social Science, 670(1), pp.58-77.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships. Springer.
Prahalad, C.K. and Ramaswamy, V., 2013. The future of competition: Co-creating unique value with customers. Harvard Business Press.
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