Published on 23/10/2020 by Any Business.Com.Au

Important Licences You Can't Get By Without

When starting a business there are lots of things you need to consider, from your business model to location and staff requirements. It's easy to get caught up in the excitement of a new venture. But before you open your doors you'll need to ensure your business will operate within Australian law by securing all the appropriate licences and permits to run your business legally.

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What is a licence and why do I need one?

A licence is a government approval, registration or permit which regulates the activities, events, services, locations, equipment and operations of your business. In other words, it's one of the most important parts of your business.

With each licence, regulating authorities permit your business to partake in certain business activities such as selling food, running a market stall or owning a taxi. There are thousands of Australian licences, each one specific to an industry, service, product or location.

A licence permits your business to do an activity within certain rules and regulations. Break the rules and you risk losing your licence. And if you perform an activity without permission, you could face hefty penalties and your business can be forced to close until you've successfully obtained the appropriate licences.

What licences do I need and where can I find them?

Licences, eligibility criteria, and rules and regulations differ from state to state. In some cases they even differ between local councils or shires. State and local council bodies typically manage your licence applications and monitor and police their ongoing use.

The Australian Business Licence and Information Service (ABLIS) is your go-to resource for business licences, eligibility criteria and application instructions. An ABLIS search can be overwhelming, particularly for those new to the business world. But it is so comprehensive it can't be missed!

ABLIS provides links to licence forms you can print out and post to the relevant council or authority. Alternatively it may provide a link to an online form you can fill out and submit electronically. If the form is from a council or local shire, you might need to go to their website to find and request a form.

Read the licence criteria carefully and make sure you understand both its requirements and how you'll meet them. If you have any questions, don't hesitate to contact the relevant authority. If you're not thorough, an incomplete or incorrect application could delay the process; and since you can't operate your business without the licence, you may even have to delay its launch.

Many people starting a business also enlist the services of a legal or financial advisor who can provide experienced and tailored advice. A lawyer or financial advisor makes sure you've covered all your bases.

Can't I simply transfer existing licences across if I'm buying a business?

When buying a pre-existing business, not all current business licences can be transferred to you. In fact few of them will, since each owner must meet the qualifications and eligibility criteria of each licence.

As the new owner of a business you'll need to reapply for most relevant licences. Ask the old owner for copies of all their licences so you know what you'll need. But also search on ABLIS to make sure the old owner didn't miss anything important and to check whether any new legislation could affect your business.

An ABLIS search could show hundreds of listings of possible licences you'll need. It's important to check all of them to see if they're relevant to you.

Industry-Specific Licences

We know you'd love it if we could just supply a list of the licences you'll need that you can tick off as you go. Sadly, it's not so easy. No one business has the same set of licences. Just as every business is unique, so are the licences they'll need.

What industry you're in and where you operate affects those licences you'll need. But to give you a hand we've picked a couple of the most popular industries searched on AnyBusiness, and outlined some of the licences you may need.

Accommodation and Food Services

Many of the businesses here on AnyBusiness are accommodation and food services. This sector has countless different licences you may need.

Cafés and restaurants typically cover food handling and serving licences. Across Australia, you'll need one or more liquor licences to serve alcohol on your business premises. If you're open late into the night, you may need an extending trade licence. You may also need permits for signage, al fresco eating, and the music you'll play.

For accommodation businesses, you may likewise need food licences if you serve meals to your guests. Every type of accommodation has different licences; you may even need a licence for providing short-term accommodation or room rental in your holiday or private home. To find out more, read Everything You Need to Know Before You Buy a Café.

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Retail

Even within the same industry, the licences you need can vary dramatically depending on your product. This is especially the case than in retail, where what you're planning to sell will determine what licences you need. A clothing store will clearly have differing requirements to a grocery or food retailer. And a wholesaler must meet different criteria again.

Location, location, location. If you run your retail business from home, you may need home occupation approval in many states. If you plan to operate as a mobile salesperson or a hawker you'll need permits that allow you to move your products around and trade in many locations, including public and private property.

To find out more, read Everything You Need to Know Before Buying a Retail Business.

Manufacturing

Again, the types of licences you'll need for your business depends on what you manufacture. Businesses manufacturing chemicals, therapeutic goods or controlled substances need very specific licences.

Most manufacturers need to register their business with the relevant peak body for the type of product they're manufacturing. For example, a pesticide manufacturer must legally be registered with the Australian Pesticides and Veterinary Medicines Authority (APVMA).

It's important to conduct a detailed ABLIS search and consult an expert before you buy a manufacturing business, since the requirements are stringent and the ramification of not complying with those requirements are severe.

Administration and support services

Administrative and support services cover numerous business types, as you'll see with a quick browse on AnyBusiness. From office cleaning and gardening to book keeping and financial services, the size and purpose of administration and support services can vary widely. Conversely, the types of permits you'll need also vary.

For cleaning and gardening services OH&S licences are important. You'll even need permits to discard waste. These are specific to the council(s) you operate in.

Do your research and be in-the-know

The only way you'll ever rest assured that you've got all the licences you need is with rigorous research. Licences and permits aren't to be taken lightly, and the ramifications of not complying with your local council, state and national regulations are too high to consider, especially when you're just starting out.

Begin your research with a broad overview of listings on ABLIS. There's no better place to start. ABLIS compiles all the potential licences you may ever need, and though the list are extensive, it brings all possibilities into one place so you don't need to go on a futile treasure hunt all over the web.

Once you have a better idea of what you'll need, consult your local council websites to further guide your licence applications. Also visit any state and national authority bodies that pop up in your search. And if you're still unsure, don't hesitate to contact an expert in the field, to give you further advice. Good luck.

AnyBusiness.com.au

Mary is the founder of AnyBusiness.com.au. She has a degree in Business from Monash University and been helping showcase businesses for sale for over 10 years. In the course of running her own business and working daily with business owners and brokers she has developed a keen sense of the Australian market for businesses for sale and shares her knowledge on this blog and others such as female.com.au

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