“Establishing a business in Australia”
Introduction
The demand for bakery products is growing in Australia as people are getting more knowledgeable about health benefits of eating protein enriched bread varieties. Since there is a bakery skill shortage in Australia(Apprenticepower 2012) and our client is specialized in making bread, cakes, tarts, biscuits and cookies he intends on starting the bakery business is Australia. The purpose of this paper is to help the prospective businessman to understand the challenges and opportunities of entering the bakery industry so that appropriate business decisions could be made. This report focuses on providing a guide to the potential bakery businessman in terms of starting a bakery in Australia. Important matters covered in this report are choosing the appropriate business structure for establishing a bakery, vital bakery business registrations and few important specifics of entering into the bakery business.

Matters for consideration
Business Structures
Starting or buying a bakery involves many indispensable steps. The foremost priority when starting a bakery business is choosing the business structure keeping in mind the needs and the budget of the business. There are four main types of business structures used by small-medium sized business in Australia (ATO & ATC 2012).
• Sole-traders
• Partnerships
• Trusts
• Companies
The appropriate types of business structures for the bakery business would be sole proprietorship and partnership. Both these structures are the simplest ways to structure the bakery business. Sole Trading is the simplest business structure, a sole trader is a single person operating a business under his/her own name. The advantage of this structure is that it is easy and low costs are required to set up. On the contrary the disadvantage is that the individual is personally responsible for all business liabilities. A partnership is formed when two or more people go into business together. They may operate under their own names or with a registered business name. Partnerships may provide access to more capital, and share the responsibilities between the partners. Partnerships are also relatively inexpensive to establish. However, a partnership agreement should be prepared with the input of all partners and the advice of a solicitor before the business commences. An important disadvantage of a partnership is the unlimited liability of each partner for all financial obligations incurred by the business. This liability extends to debts incurred by another partner without other partners’ knowledge or consent (ATO 2012).
The structure chosen for the bakery business should fit and compliment it completely because an inappropriate choice of business structure can prove to create losses for the investing individual. In deciding which business structure to choose the business individual should be mindful of the factors such as taxation, nature and size of business and financial requirements. Final decision in choosing the most appropriate kind of business structure for the bakery business should be made after talking to a solicitor dealing in foreign investments in Australia (ATC 2012).
Business Registrations
Business name registration is the second important issue for any business. The individual carrying on a business under other than individual’s own name must register that name under the Business Names Registration Act 2011 in that particular state or territory in which the business trades. Registering a business name in one State generally costs about $150 for 3 years. The Australian Securities & Investments Commission (ASIC) operates a National Names Index which is a record of all the company, business and association names in Australia. In order to avoid later disappointments the free Index site should be referred to ensure the proposed business does not already exist and also the name does not contravene any Trade mark. Registering a business name essential as it is more about consumer protection than it is about protection for the business (ASIC 2012).
In addition, any business intending to do trade must register for an Australian Business Number (ABN) and Tax File number (TFN) for taxation purposes. Since the ABN is unique for every business it will play an important role in the dealings with other entities and government agencies. The ABN could be obtained via applying through Australian Tax Office (ATO). It can be obtained in about 30 minutes. If the bakery business turnover is over $75,000 or more it must also register for Goods and Services Tax (GST) (ATO 2012).
Bakery industry specifics
Another matter is getting into the bakery industry. Before starting the bakery business one needs to understand how the bakery industry works in Australia. To achieve this businessman needs to consider planning and legal needs of the bakery business. Though there are minimal barriers to enter the bakery industry certain vital points should be considered. Firstly high start-up costs are involved to buy or establish a bakery, if a franchise bakery model is joined that would require meeting franchise costs such as paying royalty fees and advertising tariffs. Secondly the bakery businessman would require obtaining Food Business Licence from the State(s) local council where the business is intended to operate (Queensland Government 2010). Lawfully, one must ensure to apply for and receive accurate licences (Wozniak 2009). A few legislations that may apply to the bakery business are as follows:
• A New Tax System (ABN) Act 1999
• Australian Meat and Live-stock Industry Act 1997
• Food Act 2006
• Health Regulation 1996
• Trading (Allowable Hours) Act 1990 (Queensland Government 2010).
Finally, attention should be paid to apply for the business visa to Australia. Australia’s business skills program system allows business migrants to obtain a provisional visa for four years. To be eligible for a provisional visa for bakery business the pre-requisites are having a successful bakery business or investment career and an authentic commitment to engage in business activities in Australia (Queensland Government 2010).

Recommendations
To meet the challenges and opportunities of entering the bakery industry and achieving a competitive edge the paper advises that:
• The investor should be clear about the type of bakery and the target market.
• Business registration name must be obtained for business purposes.
• Special financial meeting regarding the structure of the bakery business should be conducted with a solicitor to discuss the business proposal.
• Food business licences ought to be obtained from the local council of the State(s) the bakery intends to operate in.
• The businessman may specialise in health foods and bake a range of products to meet certain diets (e.g. vegan, gluten-free, dairy free) to gain a competitive advantage.