Are you starting a business in Australia and want to know more about ACN lookup? Knowing and understanding the ACN lookup process can be extremely beneficial for companies looking to register, incorporate, or operate in Australia.
In this article, we’ll provide an overview of the process of ACN lookup and explain the advantages and disadvantages of having an ACN.
What is ACN?
The ACN is a nine-digit number that uniquely identifies a company or business in Australia. It is required to register a company in Australia and is used to identify companies and other entities when dealing with ASIC, ATO, and other government agencies.
The ACN is the same as the company’s registration number and must be included on all company documents, forms, and correspondence.
The advantages of having an ACN
1. Identification:
Having an ACN, or Australian Company Number, is essential for businesses to identify themselves legally in Australia. The ACN identifies a company and its related activities within the Commonwealth of Australia. This identification is needed for registering a business, raising funds, filing taxes, and conducting business transactions.
The ACN is usually included in the company’s documents, such as tax returns, business name registration applications, as well as letters of advice and correspondence with ASIC.
Furthermore, an ACN can also be used to identify a company in an online search and assists in protecting businesses against fraud. Having an ACN allows businesses to create a secure identity and avoid any confusion between different entities.
2. Creditworthiness:
An ACN (Australian Company Number) is essential for establishing a company’s creditworthiness. It allows creditors, financial institutions, and suppliers to quickly and easily identify a company, assess the company’s financial status and evaluate the risk associated with the company.
With ACN, your business can qualify for loans, credits, and financing from banks and other lenders. It also enables companies to purchase goods and services on credit from suppliers. An ACN is often requested as proof of identity when dealing with suppliers and lenders and may be required to access certain services such as business banking accounts.
Having an ACN allows a company to demonstrate that it is a legitimate and responsible business entity that can be trusted to make payments on time. This helps to build trust with creditors and encourages them to approve any loan or credit applications.
3. Tax Benefits:
One great thing about an ACN is giving you access to tax benefits. Having an ACN allows you to apply for an Australian Business Number (ABN), which can reduce your tax rate on certain income streams.
The reason is that ABN identifies you as a business, making it easier to proclaim and pay any taxes applicable to your business activities. Additionally, an ABN may make it easier to claim deductions and credits on goods or services purchased by your business, helping you save money and maximize your profits.
4. Government Support Programs
ACN provides businesses with access to government support programs. These programs seek to help businesses by offering access to funding, grants, and other resources.
For instance, the Australian government’s small business support grants program offer grants of $10,000 to $25,000 to small businesses. This grant seeks to help them pay for expenses such as obtaining expert advice or buying equipment. To qualify for this grant, businesses need an ACN as well as meet specific criteria set by the government.
In addition, businesses can qualify for other grants depending on the industry, size, and location. Researching the government grants available in your state or region is a great way to discover programs that may benefit your business.
Disadvantages of not having an ACN
- Recognition: A business without ACN cannot be identified as a legal entity, and you’ll not access services like registering for GST, opening a business bank account, or applying for government grants.
- Trustworthy: Not having an ACN can also have an impact on your business’s creditworthiness. Potential lenders and suppliers will not be able to check your company’s history and verify your identity if you do not have an ACN. This can make it challenging to secure financing or other forms of credit in the future.
- Tax Benefits: A valid ACN is also required to take advantage of tax benefits available to businesses in Australia. For example, businesses are eligible for specific deductions or write-offs when they submit their tax returns. Without an ACN, you cannot claim these benefits and may end up paying more taxes than necessary.
How to lookup the ACN or Australian Company Number
Lookups of the ACN or Australian Company Number can be conducted using a number of different resources. The Australian Securities and Investments Commission (ASIC) website can be used. ASIC is the government body that regulates companies in Australia, and its website lists the ACN of every company registered in the country.
The ACN lookup service provided by ASIC is the most reliable way of finding out a company’s ACN. It allows anyone to search for companies by name, ACN or even an ABN (Australian Business Number). The search results provide the company’s full details, including;
– Registration date and status;
– Address;
– Directors;
– Documents lodged with ASIC; and
– Shareholders;
How to Register an ACN?
Once you establish a business, you will get an ACN. You may consider setting up a business via ASIC or reach out to an accountant or lawyer to guide you. First, you’ll need to search the register to find out if the selected company name is available.
In addition, research to ensure that no trademarks or business names are using your selected name. What’s more? Read and understand the terms and obligations of a business officeholder.
These encompass business secretaries and directors. Moreover, ensure these obligations get to other business officeholders before setting up the company.
The Bottom Line
From the above information, you can agree that the ACN or Australian Company Number plays a vital role from identification and trustworthiness to tax benefits and more; this is a must-have for every company. Just use the ASIC Connect website to find this ACN.
You simply need to enter the company name, and the website will provide you with the company’s ACN. This is a quick and easy way to find the ACN of any Australian company.
