What is an ACN? Many business owners feel confused when registration requirements seem unclear. Research from Australian government registration services shows that different business structures follow different identification requirements. Consequently, many people wonder whether they need an Australian Business Number or an Australian Company Number before commencing operations.
The confusion increases because some businesses must apply for both identifiers. Additionally, requirements vary depending on whether a company is registered with ASIC. This guide explains the difference between these identifiers and registration obligations. Furthermore, you will learn when a business needs an Australian Business Number, how companies receive an Australian Company Number, and the steps required for compliance.
What Is an ACN in Australia?
An Australian Company Number, is a unique nine-digit number issued to registered companies. The Australian Securities and Investments Commission issues this number during business registration. Accordingly, an Australian Company Number helps identify Australian companies in official records and legal documents.
A company must display its Australian Company Number on certain business communications and records. Furthermore, the number remains linked to the company throughout its existence. When people ask, “What is an ACN?”, they generally refer to this identifier used for companies operating within Australia.
Who Needs an ACN?
Companies operating as a registered business structure generally need an ACN. The Australian Securities and Investments Commission issues the number during company registration. However, including sole traders, partnerships, and many trust arrangements, other structures usually do not require an ACN.
Instead, these entities commonly need an ABN for business activities. Therefore, whether you need an ACN depends largely on your chosen business structure.
How to Get an ACN When You Register a Company?
To get an ACN, you must register a company through the appropriate process. Initially, you submit company details, including the proposed company name and structure. Afterwards, the Australian Securities and Investments Commission reviews the application.
If approved, ASIC issues an Australian Company Number automatically. Subsequently, you can complete additional registrations, including applying for an ABN when required for business operations.
Difference Between an ABN and an ACN
The difference between an Australian Business Number and an Australian Company Number mainly relates to purpose and eligibility. An ACN is used specifically for registered companies, whereas an ABN applies to various business entities.
- An ACN is a unique 9 digits number issued by ASIC.
- An ABN is a unique 11-digit number issued by the Australian Taxation Office.
- Companies may require both identifiers for business activities.
- Sole trader, partnership, and trust structures generally use an ABN.
- The Australian Business Register manages ABN records and registrations.
Therefore, the comparisons between these two numbers depend on the business structure involved.
ABN and ACN Requirements for Australian Companies:
Australian companies commonly require both an ABN and an ACN for operations. Firstly, ASIC assigns the ACN when the company registers successfully. Secondly, businesses can apply for an ABN through the Australian Business Register.
Additionally, GST registration may become necessary when turnover reaches relevant thresholds. Therefore, meeting ABN and ACN requirements helps companies satisfy administrative and taxation obligations.
Do You Need an ABN, an ACN, or Both?
The answer depends on your business structure and planned activities. Registered companies generally need an ACN and often require an ABN. However, a sole trader usually needs an ABN rather than an ACN. Likewise, a partnership or trust commonly operates using an ABN. Therefore, businesses should assess registration obligations carefully before commencing operations in Australia.
How to Register a Company and Obtain an ACN
If you want to register your company, you must register it with ASIC. Firstly, submit company details, including the proposed company name and structure. Afterwards, ASIC reviews the application and confirms eligibility requirements. Once the company is registered, ASIC issues an Australian Company Number or ACN.
Accordingly, the ACN is a unique 9-digit number that identifies your company. Every company in Australia receives this number after registration. For current requirements, check the ASIC website for the latest guidance before applying.
Applying for an ABN After Company Registration:
After your company is registered, you can register for an ABN online. The Australian Business Number or ABN is a unique 11-digit number for taxation purposes. Additionally, businesses can obtain an ABN through the Australian Business Register website.
Follow the prompts and provide accurate company details during registration. Afterwards, your company’s ABN links with taxation and reporting obligations. Some Australian companies need both identifiers for everyday operations.
Register an ACN for a New Business in Australia:
Many people ask how to register an ACN for a new enterprise in Australia. However, you cannot separately register it without forming a company structure. Instead, register your company through ASIC using the required application process.
Once approved, it comes automatically with successful company registration. Therefore, every company registered in Australia receives a unique nine-digit number issued by ASIC.
Registration Costs for an ABN and an ACN
The registration process and costs differ significantly between an ABN and an ACN. You can register for an ABN online through the Australian Business Register, and the application is free. Some third-party registration services charge fees for preparing and lodging applications. Here is a brief overview of all the costs associated with registering for either one or both of the numbers.
| Registration Item | Official Fee |
|---|---|
| ACN (Company Registration through ASIC) | $611 until 30 June 2026 |
| ACN (Company Registration through ASIC) | $636 from 1 July 2026 |
| ABN Registration | Free |
| GST Registration | Free |
| Business Name Registration (1 year, if required) | $45 until 30 June 2026, $47 from 1 July 2026 |
| Business Name Registration (3 years, if required) | $104 until 30 June 2026, $108 from 1 July 2026 |
When an ACN Is Not Required
Not every type of business needs an ACN in Australia. Generally, sole traders and partnerships operate without company registration requirements. Instead, these entities often need an ABN for tax and business purposes. Likewise, many trust structures use an ABN rather than an ACN. Therefore, whether you need an ACN depends primarily on your chosen business structure and registration status.
Businesses That Need an ABN but Not an ACN:
Several business structures need an ABN but do not require an ACN. For example, sole traders and partnerships commonly operate using an Australian Business Number. Likewise, some trust arrangements may qualify if entitled to an ABN. Because these entities are not incorporated companies, ASIC does not issue company identifiers. Therefore, they use ABN details for taxation and business transactions.
Can You Operate Without an ACN?
Yes, some businesses can operate legally without it in Australia. However, every company must obtain an ACN because ASIC requires company identification. Conversely, sole traders, partnerships, and certain trusts generally operate without one.
These entities may instead need an ABN for tax obligations. Therefore, the answer depends on whether your business is registered as a company.
Managing Your Business Identifiers
After registration, businesses should maintain accurate ACN and ABN records consistently. The company’s ACN identifies the corporation, while the company’s ABN supports taxation activities. Additionally, businesses must display their ABNs correctly on relevant documents.
Whenever details change, update records promptly through official government channels. Businesses that cease trading may also need to cancel their ABN. Accordingly, accurate identifiers support compliance and reduce administrative complications.
How to Display Your ABN Correctly?
Businesses should display their ABNs on invoices, websites, and selected commercial documents. Additionally, displaying the ABN helps customers verify registration details more easily. An ABN must appear accurately because incorrect information may create administrative issues.
Many businesses also include ABN on invoices for taxation and recordkeeping purposes. Therefore, review official guidance before publishing business identification details.
When to Cancel Your ABN:
You should cancel your ABN when business activities permanently cease. Additionally, businesses should update records if ownership or structure changes significantly. Afterwards, notify relevant authorities through the Australian Business Register process. Businesses should not continue using identifiers once registration obligations end. Therefore, review eligibility requirements before deciding whether to cancel your ABN.
Keeping ACN and ABN Details Up to Date:
Businesses should regularly review ACN and ABN details for accuracy. Whenever company information changes, update records through the appropriate government platform. Additionally, maintaining current information supports compliance and business communications. Registered companies should review ASIC records, while other entities monitor ABN information. Consequently, accurate records help authorities and customers verify business identification efficiently.
Conclusion
What is an ACN? It is a unique identifier issued by the Australian Securities and Investments Commission. Every company registered with ASIC receives one for identification purposes. However, not every business needs it because requirements depend on the structure. For example, sole traders may need an ABN if they conduct business activities.
An ABN is an 11-digit number used for taxation and commercial transactions. Therefore, business owners should determine whether they need an ABN or an ACN. Before registering, review official guidance and confirm eligibility requirements carefully. Which business structure are you planning to use for your enterprise in Australia?