How to Apply for an ABN in Australia: The Full Guide for Startups

A guide for founders and new entrepreneurs who want to obtain an ABN.

When you’re starting a business, applying for an ABN (Australian Business Number) might feel like a formality or just admin. In reality, it’s a gateway to being seen as a real business. Without it, you can’t invoice properly, register for GST, get a domain name, or build any credibility in the Australian business ecosystem.

I’ve worked with hundreds of founders who delayed or got their ABN setup wrong — and they paid the price. From withheld payments to trouble registering for other essentials, the consequences stack up fast.

Let's walk through how to apply for an ABN so you setup a strong foundation for your business.

What Is an ABN? (Australian Business Number)

An ABN is an 11-digit identifier issued by the Australian Business Register (ABR) that lets the government and public identify your business.

You generally need an ABN if you:

• Provide goods/services for payment

• Issue invoices or quotes

• Register for GST

• Operate as a business (not a hobby)

ABN vs Company Registration (ACN):

• A sole trader needs an ABN (no ACN).

• Sole trader ABN is issued to you (the individual). Invoices show your name (and registered business name if applicable).

  
  

• A company (Pty Ltd) is registered with ASIC (gets an ACN) and also has its own ABN. These are separate numbers with different purposes.

• Company ABN is issued to the company (with an ACN). Invoices show the company name (and business name if different).

Moving from sole trader to company later means new ABN; plan for bank, invoicing, and supplier updates.

ABN for Startups: Sole Trader vs Company

Sole Trader ABN

• Fastest, simplest setup

• Use your personal TFN for tax

• You’re personally liable for debts

• Easy to switch to a company later

ABN for a Company (Pty Ltd)

• Requires ASIC company registration first (you’ll get an ACN)

• Company then applies for its own ABN

• Limited liability and easier investor readiness

• Extra admin (director details, registers, compliance)

SOLE TRADER vs COMPANY COMPARISON

[short version - full version available via the downloadable link below]

Aspect	Sole Trader	Company (Pty Ltd)
Legal status	You = the business (no separate entity).	Separate legal entity (ACN + ABN).
Liability	Unlimited personal liability.	Limited liability for shareholders; director duties still apply.
Tax	Personal marginal tax rates on profit.	Company tax rate; profits can be paid as dividends (franked).
ABN	ABN issued to you.	ABN issued to the company.
Setup & compliance	Fast, low-cost; simpler reporting.	ASIC setup + annual reviews; higher governance.
Pay yourself	Drawings (no wages to self).	Wages (PAYG + super) and/or dividends possible.
Funding & investors	Hard to raise equity.	Investor-friendly (shares, ESOP).

Why Getting an ABN Matters

• Invoice legally & get paid faster – Without an ABN, clients may delay payment.

  
  

• Avoid 47% withholding – Businesses can be required to withhold 47% from payments if you don’t provide an ABN.

  
  

• Instant credibility – Your business shows up on public registers.

  
  

• Unlock essentials – Register a business name, apply for GST, open a business bank account, and secure a .com.au domain.

Mentor Tip: Sort your ABN early. It removes roadblocks and speeds up everything else.

What You Need Before You Apply (Requirements)

Have these ready for a smooth ABN application process:

• Legal name and (if any) business/trading name

• TFN (optional, but can speed verification)

• Business address and contact details

• Business structure (sole trader, company, partnership, trust)

• Detailed primary business activity (be specific)

Mentor Tip: Vague activity descriptions trigger delays. Write what you actually do in plain English.

Your Quick Start Checklist for an Online ABN Application

This is your quick start checklist and the full checklist available free via ProDesk.com.

How to Apply for an ABN Online (Free)

Important: The ABN application is free via business.gov.au / the ABR. Third-party sites often charge a fee to do the same thing.

Step 1: Choose the Right Structure

Pick sole trader, company, partnership, or trust. Your structure affects tax, liability, and the details you’ll enter.

Step 2: Go to the Official ABN Application

Use the official business.gov.au / ABR portal. Avoid paid “apply now” ads unless they include professional advice.

Step 3: Complete the Application Accurately

Enter identity details, structure, and specific business activities. Include your TFN (optional) to speed up checks.

Step 4: Submit & Save Your ABN

Many approvals are instant. Download your ABN confirmation and store it in your cloud folder (you’ll need it constantly).

What Happens Next (Post-Submission)

• Immediate ABN (often) shown on screen and by email

• Your entry appears in the ABN Lookup/ABR

• If the ATO needs more info, processing can take up to 28 days

• Use your ABN to:

  • Register a business name

  • Apply for GST (if required)

  • Open a business bank account

  • Secure your .com.au domain

What are the Costs Involved and & Timing

• ABN registration: Free

• Application time: ~10–20 minutes with details ready

• Processing: Instant in most cases; up to 28 days if reviewed

Money-Saving Tip: Don’t pay a third party to submit the same free form unless they’re packaging legal/accounting advice you actually need.

Common Mistakes (and How to Avoid Them)

Wrong structure → causes tax/admin headaches later

Delaying → clients may withhold 47% and you can’t invoice properly

Using unofficial websites → you’ll pay for something that’s free

Vague activity descriptions → invites delays or mismatched tax treatment

Not saving your ABN → you’ll need it for banking, invoicing, GST, and ASIC actions so save it to the cloud where it is easily accessible.

What to Do Right Now

✅ Go to business.gov.au / ABR and apply (free)

✅ Save your ABN confirmation in the cloud on your SPOT document [ProDesk.com]

✅ Get the StartUp Deck. Whether you're building your first business or your fifth, the StartUp Deck makes sure you never miss a step that matters [theStartUpDeck.com]

✅ Book Noize if you want help aligning ABN, structure, and taxes [Noize.com.au]

The Bottom Line

An ABN is a low-friction, high-leverage step that unlocks everything else — invoicing, GST, banking, .com.au domain, and credibility.

Apply online for free, save the confirmation, and keep building — with fewer blockers and more momentum.

FAQs

Do I need an ABN to start a business in Australia?

Yes. If you’re running a business (sole trader, company, partnership, trust), you need an ABN to invoice, register for GST, and appear on public registers.

Is getting an ABN really free?

Yes — apply via business.gov.au / ABR at no cost. Third-party “apply now” sites usually charge fees.

Can I get an ABN as a sole trader?

Absolutely. It’s the most common path for new founders. Your ABN identifies you as a business.

How long does it take to get an ABN?

Most are issued immediately online. If the ATO reviews your details, it can take up to 28 days.

What happens if I operate without an ABN?

Clients may withhold 47% of payments, and you can’t issue compliant invoices, register a business name, or apply for GST.

Is an ABN the same as company registration?

No. ABN identifies a business for tax/admin. Company registration (ACN) creates a separate legal entity via ASIC; that company then has its own ABN.