Starting a business in Melbourne is one of the most exciting entrepreneurial decisions you can make. The city offers a deep talent pool, world-class universities, an active venture capital ecosystem, and a culture that genuinely celebrates innovation and ambition. Navigating the legal and regulatory requirements is straightforward when you take them step by step. This guide walks you through everything you need to launch legally and confidently in Melbourne, Victoria.

Step 1: Choose Your Business Structure

The four main business structures in Australia are sole trader, partnership, company (Pty Ltd), and trust. Each has different tax, liability, and administrative implications.

A sole trader is the simplest structure: you trade under your own name or a registered business name, income is taxed at your personal marginal rate (up to 45 per cent), and you carry full personal liability for business debts. Best for early-stage testing or low-risk freelance or consulting work.

A Proprietary Limited company (Pty Ltd) provides limited liability, separates personal and business finances, and accesses the corporate tax rate of 25% for base rate entities. It is the standard choice for most Melbourne businesses planning to grow, take on staff, or raise investment. Setup through ASIC costs AUD $576 for standard registration and can be completed online in one business day.

Trusts (particularly discretionary family trusts) are common for family businesses and property investment structures, offering flexible income distribution but more complex administration. Always seek accounting advice on trust structures.

Step 2: Register Your Company and Business Name

Company registration and business name registration are both handled through ASIC Connect at asic.gov.au. A company registration requires at least one Australian director, a registered office in Australia, and a share structure. A business name (trading name) costs AUD $41 for one year or AUD $96 for three years and is required if you trade under a name other than your legal company or personal name.

Step 3: Apply for Your Australian Business Number (ABN)

An ABN is a free 11-digit identifier for your business used on invoices, for GST registration, and to interact with government agencies. Apply online at abr.business.gov.au. For a Pty Ltd company, you apply on behalf of the company entity. ABN registration typically takes minutes to a few days depending on identity verification requirements.

Step 4: Register for GST

Goods and Services Tax (GST) at 10% is compulsory once your business turnover reaches AUD $75,000 per year. Register through the ATO Business Portal using your myGovID. Once registered, you charge 10% GST on taxable supplies, lodge Business Activity Statements (BAS) quarterly or monthly, and can claim input tax credits on GST paid on business expenses.

Step 5: Open a Melbourne Business Bank Account

A dedicated business account is essential for clean financial records and a prerequisite for most business lending. Melbourne’s options include ANZ and NAB (both with Melbourne HQs), Commonwealth Bank, Westpac, and Bank of Melbourne. For digital-first banking, Zeller and Airwallex offer excellent multi-currency and payments capabilities.

Step 6: Obtain Business Licences and Permits

Use the Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au to identify all required federal, Victorian state, and Melbourne City Council licences for your industry. A food business will require a Food Act registration with your local council. A construction business needs a Victorian Building Authority licence. A childcare service requires Victorian Department of Education registration. Always check council-specific requirements as some local governments have additional permit requirements.

Step 7: Victorian Payroll Tax and WorkSafe Victoria

Once Victorian wages exceed AUD $700,000 annually, register for Victorian payroll tax at 4.85% with the State Revenue Office Victoria. This threshold applies to total Australian wages for grouped employers. All businesses engaging employees in Victoria must register for WorkSafe workers compensation insurance before starting employment. WorkSafe Victoria provides a straightforward online registration process.

Step 8: Victorian Long Service Leave

Victoria has some of Australia’s most employee-protective leave laws. Employees accrue long service leave after seven years of continuous employment (entitlement to a pro-rata payment applies from seven years, with full entitlement of approximately 1/60th of the period served). Factor this liability into your HR and financial planning from the outset.

Key Melbourne Business Resources

Business Victoria at business.vic.gov.au is the Victorian Government’s primary business support portal. It provides plain-language guides to registrations, compliance, grants, and business development programs. The Victorian Chamber of Commerce and Industry (VCCI) provides advocacy, training, and advisory services for Melbourne businesses. Invest Victoria supports international and interstate businesses establishing in Victoria.

For funding your new Melbourne business, see our guide to small business funding in Melbourne. For workspace to grow from, explore our guide to Melbourne coworking spaces.

Launch Your Melbourne Business with Confidence

Melbourne is one of the world’s great cities for entrepreneurs. The combination of a talented workforce, world-class universities, active investors, and a government that supports business creation makes it an exceptional place to start. Follow the steps in this guide, engage quality advisers, and you will be legally operational in Melbourne within a week.

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