ABN vs ACN: What’s the Difference?

ACN and ABN are two terms you need to know if you want to start a business in Australia. Below you can find what these terms mean and how you can obtain them. If you are about to put a business plan for your future project and need to know all the procedures required from you to launch this business, this article will help you. Namecorp, along with being experts in business name registration in Australia, offers you more guiding information about the ACN and the ABN.

An ABN is a business number issued to all entities including sole traders, partnerships and companies by the ATO. All businesses trading in Australia need one.

An ACN is a number issued by ASIC (the Australian Securities & Investments Commission) specific to companies. A company will have both an ACN and an ABN, whereas sole traders, partnerships and other organisations will only need an ABN. The ABN is a 11-digit number, and the ACN is a 9-digit number.

Here, you will find all the information you need to start your business in Australia.

What is an ABN?

An ABN or Australian Business Number is a unique identifier assigned to all businesses in Australia, issued by the ATO. You’ll need an ABN to complete an Australian tax return or open a business bank account, and you should add it to your invoices and paperwork. It can also be used when applying for an Australian business licence.

To receive an ABN, you will need to register your business on the Australian Business Register. Once you’ve registered, you’ll have a unique 11-digit business number valid for life. NameCorp can help you set up an ABN with one easy application. A company number can be lodged simultaneously as registering a business name, and Namecorp can handle and finalise this process for you too.

You can only use an ABN for business-related activities, such as paying employees, and it must be quoted on all documents. You’ll need an ABN to complete an Australian tax return or open a business bank account. It can also be used when applying for an Australian business licence.

Your ABN will remain active unless you cancel it, or if the ATO considers it to be inactive.

What is an ACN?

Remember: The ACN is the Australian Company Number.

An ACN stands for Australian Company Number,  and is a unique identifier assigned to all companies by (ASIC) Australian Securities and Investments Commission.

It is important to note that not all businesses are companies. A company is a particular business structure that is legally separate from its owners (called ‘shareholders’) and is managed by directors. So by creating an ACN, you are essentially creating an entity that is legally separate from yourself – which differs from a sole trader or partnership.

It is a legal requirement, under the Financial Transaction Reports Act 1988, to register your company if you operate in Australia.

Once you have your ACN, you should add it to your business cards and on the footer of your invoices.

To ensure your ACN remains active, and your company is registered, ASIC requires all company details to be renewed annually.  This process is referred to as either an Annual Company Review or an Annual Company Statement, and involves you confirming your company’s details with ASIC and paying a renewal fee. Thankfully, this is a process NameCorp can help with too.

What is a Tax File Number?

A Tax File Number (TFN) is a unique ten-digit number that identifies taxpayers to the Australian Taxation Office. It differentiates between individuals with the same name and protects against identity theft. You can get a Tax File Number from the Australian Taxation Office.

A Tax File Number is essential for getting a job in Australia, applying for various government benefits and services, and setting up a business. It is also needed to file tax returns, access banking, and set up services for phone, internet, and utility companies.

You will also need the TFN of your employees so you can pay their wages and make contributions to the ATO.

Namecorp can help you with setting up an ABN, ACN and business name registration.

If you want to register your business in Australia, Namecorp can help you with your business name search, setting up an ABN, or registering an ACN. Namecorp works with ASIC and the Australian Government to quickly register your business name through our web-based business registration software, ASIC eBiz.

Where can I find my ABN/ACN details if I’ve lost them?

To find your Australian Business Number (ABN), use the Australian Government’s ABN Lookup website. You must include your full name or company documents to search for your ABN.

To find your Australian Company Number (ACN), use ASIC Connect, the official company record management service provided by the Australian Securities and Investment Commission (ASIC).

Our Namecorp business experts have decades of experience working with ASIC and the Australian Government. If you’re an Australian business looking to set up an ABN, or get your business name registered, we can help you get it done quickly, smoothly, and with no messy paperwork.

“Namecorp helped me register my brand in a matter of days, and I’d recommend them to anyone looking for business registration services.”

Disclaimer: All information provided on this webpage is general information about our business in Australia, and products and services. Nothing on this webpage is intended to be professional advice and should not be relied on as such. You should obtain specific financial, legal, or other professional advice before relying on the content of this webpage. By not seeking such advice, you accept the risk that the information on this webpage may not meet the specific needs of your business. Our liability is limited to the maximum extent permitted by applicable law in accordance with our website terms and conditions.