Setting up your organisation

Incorporating

Once your organisation as decided which incorporated structure it wishes to use, the next step is to set up your organisation following processes required by legislation (that is the Act of Parliament and Regulations).

The incorporation process is different for each type of legal structure. For information on incorporating as the main types of not-for-profit legal structures, go to the following pages:

• setting up an incorporated association under the Associations Incorporation Act Reform Act 2012 (Vic)
• setting up a company limited by guarantee under the Corporations Act 2001(Cth)
• setting up an indigenous corporation under the Corporations (Aboriginal and Torres Strait Islander Act 2006 (Cth)
• setting up a co-operative under the Co-operatives Act 1996 (Vic), and
• if your group has decided that (at least at this stage) it will not incorporate, there is a section for legal information about setting up an unincorporated group.

Applying for an Australian Business Number (ABN)

An Australian Business Number (ABN) is a unique number which identifies your organisation to the Australian Tax Office (ATO) and other government departments and agencies.

It is not compulsory for a not-for-profit organisation to have an ABN unless it has a goods and services tax (GST) turnover of $150,000 or more (in which case it is required to register for GST, and must have an ABN to do this). However, even if your organisation is not required to register for GST, it can be helpful to have an ABN.

Organisations commonly choose to register for an ABN so they can:

• apply for endorsement as a deductible gift recipient (DGR), or an income tax exempt charity, or both
• claim GST credits (by voluntarily registering for GST)
• interact with government departments, agencies and authorities (for example, the ATO in relation to fringe benefits tax), and
• deal with businesses more easily (especially for ordering and invoicing purposes).

More information on ABNs, including who is entitled to apply, is set out in the ATO's fact sheet.

Applications for an ABN can be made online via the Australian Business Register, or by paper form available from the ATO, or through a tax agent.

You can check whether an organisation has an ABN (and if so, their business details and any tax concessions) by searching the Australian Business Register.

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Registering a business name

Generally, a business name needs to be registered with the Australian Securities and Investments Commission (ASIC) if you intend to carry on a 'business' in Australia using a name that is not your organisation's name. Business names registration and administration was previously handled by Consumer Affairs Victoria, but from 28 May 2012, a national business names register has been introduced.

Note: if your group is incorporated, you do not need to register a separate business name to conduct activities under your organisation's registered name. However, if you still wish to apply for a separate business name, you will need to be 'carrying on a business' within the meaning of the Business Names Registration Act 2011 (Cth). A 'business' is an activity, or series of activities, done:

• in the form of a profession, a trade, employment, a vocation or a calling,
• in the form of an adventure or concern in the nature of trade, or
• on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property.

Also, if your organisation wishes to apply for a business name, you will need an ABN (see above).

For more information on eligibility for registering a business name and details on the business names register, visit the ASIC business names information portal.

It is important to note that registering a business name does not give you ownership over that name and does not automatically prevent others trading using that name. It does, however, prevent someone else from registering that name. If you wish to use the business name exclusively, you should conduct the appropriate intellectual property searches to make sure it is available. If it is available, you should consider taking steps to protect intellectual property rights in the name. Click here for more information on protecting the intellectual property of your organisation, including a name.

Note: regualtion of business names moved from CAV to ASIC in 2012. CAV has also provided information here on how the transition from State registration and administration to a national scheme will work.