Business Entities in Australia

Question: Describe about the business entities in Australia. Answer: Introduction Business entities are required to adhere to the rules and regulations related to business right from the incorporation of the company until its liquidation. Business laws are applicable to business entities and it largely depends on the structure of the business entity. In Australia, such business entities have to follow the laws stipulated by the Commonwealth as well as the State. There are instances where local and other authoritative bodies play a pivotal role in implementing rules and regulations forming a part of the legislative structure. In the present business environment, proper management and compliance exert a great amount of influence on the manner in which business entities undertake their business activities ("Food safety standards (Australia only)", 2016). Compliance can be said to be the adherence of business entities to the laws applicable to them. Corporate governance and ethics have become an integral part of business management and sustainability. Compliance is a n extensive concept and it requires an organisation to perform various related tasks. The first step in the process of compliance is identifying the applicable legislations. In the given case in hand, a family runs a restaurant business by the name of the Great Catch. This study is directed towards exploring the various types of laws that this business is required to comply with along with other industry participants. Any food related business is a part of the food and beverage industry. The first thing that comes to everybodys mind is food safety and security. As per the given scenario, the restaurant business is situated in Sydney, which is the capital of New South Wales. Thus, the food and safety regulations applicable in the state will have to be complied by the business. Along with state legislations, the Food Safety Standard applicable to the whole of Australia will also be of significance ("Safe Food Australia", 2016). The legislative compliance related to the industry will be discussed in the later portion of the study. The first part of this study will be discussing about the registration requirements of the business. Every business is required to get itself registered under the relevant authority. Business name is registered under the provisions of the Australian Securities and Investment Commission Act 2001 (ASIC) ("Registering a business name | ASIC - Australian Securities and Investme nts Commission", 2016). The ASIC stipulates that when a business is carried on in Australia, such a business be required to be registered for the purpose of compliance. Business registration can be done online from the portal of the ASIC. This registration process is related to registering the name of the business. ASIC also stipulates that entities be required to get their business name registered when such business is not carried on in the name of the owner. The next step of compliance requires business entities to get an Australian Business Number (ABN) ("Apply for an ABN | Australian Business Register", 2016). This requirement is related to tax liabilities of an organisation. Business organisations are required to file their tax return with the Australian Taxation Office (ATO). ABN is required while filing such tax return with the ATO. Application for an ABN can be done from the portal of the Australian Business Register (ABR) online ("Australian Business Register", 2016). Tax F iling Number (TFN) is another important element that is required while filing a tax return. Similar to ABN, application for acquiring a TFN can be made from the portal of the ABR ("Tax file number | Australian Taxation Office", 2016). The restaurant business involves selling of goods and services and thus, it is required to get the business registered under the Goods and Service Tax (GST) regime. GST is an important element of tax that is related to a business organisation ("Registering for GST | Australian Taxation Office", 2016). A business organisation has to get itself registered under the GST if it has a turnover of $75000 or more in an income year. The seafood restaurant business can get itself registered under the GST at the time of obtaining the ABN or it may get itself registered at a later stage when it is expected to reach or cross the stipulated turnover threshold. Another important aspect of compliance is intellectual property rights. A business organisation has intangible assets along with its physical tangible assets. Intellectual properties are such intangible assets that are very valuable and important to organisations. Intellectual properties include trademark, patents, designs and other secret p rocesses that a business exclusively develops. IP Laws Amendment Act 2015 governs intellectual properties. IP Australia is the governing authority that is responsible for registering intellectual properties and matters related to such intellectual properties ("IP Laws Amendment Act 2015 | IP Australia", 2016). The business will have to register its brand name and trade mark under the provisions of the Trade Marks Act 1995. In case the business develops any exclusive recipe, a patent for such recipe can be applied and registered. Intellectual properties are very important and sensitive. Infringement of intellectual property rights may result in paying hefty penalties by the infringing party or parties. Therefore, care should be taken while registering names, designs, trademarks and brand names. It should not be similar to any property that has been registered previously by someone else ("IP legislation | IP Australia", 2016). This part of the essay will deal with the compliance of legislations that are applicable to the food and beverage industry. As mentioned earlier, the business is required to comply with the provisions of the Food Safety Standards. The standards state that restaurant business is a food business that undertakes or deals with food that are offered for sale. The standards are required to be followed by any entity that offers any kind of food for sale in Australia. This is obligatory for businesses engaged in the food and beverage industry ("Standard 3.2.2 Food Safety Practices and General Requirements", 2016). The primary objective of the standards is to ensure that the food that is offered for sale is edible and safe. In essence, people or businesses selling foods are required to follow certain protocols while preparing and swerving food items. The stipulated protocols include hygiene obligations that an entity producing, processing and selling food items. The standards are classified under five heads namely Interpretation and Application, Food safety Programs, Food safety Practices and General Requirements, Food Premises and Equipment and Food Safety Programs for Food Service to Vulnerable People. Entities engaged in the food and beverage industry are required to adhere to these standards in strict sense while undertaking their business activity of selling food. Apart from the standards floated by the Commonwealth, entities engaged in the industry are required to comply with other legislations. One such example is the Australia New Zealand Food Service Code. This is popularly known as FSANZ. State legislations include the Food Act 2013 and Food regulations of the NSW state. These legislations relate to food safety and security and govern the type of food sold including restaurants. Some other legislation is also applicable to the restaurant business. These legislations govern the manner in which the business activities are undertaken by the business entity. Such legislations include the Trade Practices Act 1974, Australian Consumer Law and Fair Trading Act 1987. The Trade Practices Act and the Fair Trading Act related to competitive practices of an organisation or entity. Pricing of goods and services shall be competitive to the industry. Entities are prohibited from engaging in activities that hamper healthy competition in the industry. The refore, the provisions of these legislations are to be complied with in strict sense. Australian Consumer Law deals with the rights of customers and obligations of the seller. This legislation promotes fair-trading and protects the rights of the consumers. Conclusion It can be seen from the above detailed discussion that a business entity has to comply with various types of legislation in the course of its life while undertaking its specific business activities. Some of these legislations are general and has to be followed and complied with by every business entity. On the other hand, some legislations are to be followed by entities to ensure fair trading activities are undertaken by them along with protecting the rights of the consumers. However, entities engaged in the food and beverage industry are required to follow the Food Standards stipulated by the Commonwealth of Australia. The state of NSW also stipulates some legislative provisions that are applicable to businesses engaged in the food and beverage industry. Therefore, it can be noticed that there exists a complete framework for the seafood restaurant business that it has to comply with in order to facilitate smooth functioning of the business. 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