Starting a business is overwhelming because of the numerous processes that one has to go through. However, when these processes are arranged systematically they normally end up being easy to achieve. The three most essential steps that an entrepreneur has to undertake while starting a business include writing a business plan, doing thorough research on the market and looking for capital that will be used to start the business. After accomplishing all these steps, entrepreneurs can begin to set up the business. One of the first step of setting up- the business is registering the business name. However, before doing so, entrepreneurs have to decide on the legal structure of the business that they are going to use. These legal structures include sole proprietorship, partnership, cooperation society and cooperative. Sole proprietorship is where one operates the business while partnership is when one operates the business with one or more people. Corporation on the other hand is when one operate a business as a separate legal entity, while society are businesses that operate in a nonprofit basis. Conclusively cooperative normally entails a business that is democratically controlled by the customers who benefit from the services of the business. This essay outlines the business structure , registration processes and requirement, legal; compliance and employment strategy of a newly formed business.
The legal business structure that is going to be used to operate the business is partnership. This is because in this form of business there should be more than one partner and since in this instance they are three, it is acceptable to the law. Apart from being compliant to the law, it is a fact that two heads are better than one, therefore, it is more likely to perform better than a sole proprietorship. When compared to society, co-operative and cooperation; its starting cost is relatively lower making it cost effective. Similarly, when soliciting for funds, it is easier since more than one person is held accountable. This means that they are more likely to be given a higher borrowing capacity than if they had decided to form the business individually. Apart from having a higher chance of getting adequate capital , an employee who is very competent can be made a partner any time (Seglin, , Coleman, & Amacom, 2002). The partners in this legal structure of operating a business are also allowed to split their income which might adversely reduce the tax burden. Partners are as well allowed to keep their business affairs private which may easily enable them beat their competitors. In addition to all these advantages, there are limited external regulation that normally affects them and they can change the legal structure of the business anytime they feel like.
The main role of travel agency has gradually changes over the past few decades. This has been attributed to the fact that their clients can now simply go online, fill the requirements and book a ticket. This has made the requirements needed to operate a travelling agency to relatively change. In order to start a traveling agency one requires a name for the business, a location or notch where they will operate and how they are going to find their clients. In United states and Canada when one talks about a travel license they simply means complying with the government processes (ahem and paying fees) of registering a travel agency. It normally does not include testing of the agencys agent knowledge or training. It simply entails paying some registration fee, filling some form and being given a traveling agency selling registration number.
However, the license required to operate a travel agency in Australia is relatively different. First when contemplating of starting a travel agency, which falls under the travel and tourism industry there numerous recommendations that has been proposed by AFTA that one is required to comply with in order to have a perfect head start. These considerations include developing a business plan. The business plan should describe the concept that is going to be used to run the business. It should also tell the market segment that the business is going to operate and how it going to be competitively relevant in this segment (Seglin, , Coleman, & Amacom, 2002). Defining the employees skill, stipulating obtainable objective among others are also important sections in the business plan. AFTA has also recommended that when one wants to start a carrier in travel agency they should go for training. A training qualification in travel agency is considered as the best head start. Since one of AFTAs vision is to foster a travel industry with highly qualified staff, they normally require any new applicant to have Certificate in Travel as the minimum entry qualification. After complying with these, the travel agency is normally cleared with the ATAS which is the AFTAs accreditation body . ATAS normally requires new travel agencies to have at least 30% in travel holding position. Therefore, this means that their employees should hold certificate III and at least two year experience. In addition to the qualification the new agency must submit a copy of its business plan and budget projection on the first year. Lastly they are supposed to take an insurance cover for their business before ultimately being given a licensee. This clearly shows that the licensee required to operate a travel agency in Australia is normally more complicated than that of other parts of the world including United states and Canada.
Tax registration (As per the Australian tax office ATO)
Goods and services tax in Australia is normally known as the GST( Goods and Services tax). It is more often than not calculated as 10% of the cost of the good or services sold. Since this applies to most businesses in Australia it is more likely that it will also apply to the New travel agency since it falls under the goods and services industry. If a business is registered to goods and services tax , then the service provider is normally forced to charge some extra cash from their customer which they will pay to the ATO office when the due date reaches. Some of the requirements that shows a business must be registered to GST include if the business has an annual GST turnover of over, $75,000 or if its a nonprofit organization it has a turnover of over $150,000 or if one provides taxi travel in exchange of bus fare. Since the travel agency will also entail hiring taxi for its customers, it is therefore mandatory that it registers for Goods and services taxation( GST).
The business is required to register for GST within 21 days of its operation. In order to register, the company will need an Australian business number (ABN) which is normally given when one registers the business for the first time(Weitzenboeck, E. 2012). This number is very essential, since it is part of the GST system and it is used as the registration number. But in case the business has no ABN then, the business owners can also apply for tax registration using the same sheet that they use in applying the ABN number online. After registration one can go to the ATO business portal and log in so as to complete the registration process. While logging in, one uses their AUSkey. In case an individual does not have a AUSkey, they can get one from the ATO website. If one has already registered for GST they can claim for GST for goods or services that is offered. Also a company that is registered to the travel agency must have a tax invoice which includes the VAT charged for each item.
In Australia, a business name can be registered by the Australian securities and Investment commission (ASIC) connect service. One normally signs up in order to create a username and password. After sighing up one is then required to log in and search for the business name so as to ascertain that it is not being used by a different agency. After that, an individual can now manage the name among others in that account. The most suitable name for this travel agency is Safiri Salama travel agency. This is because, the name has a hidden meaning and is easy for customers to get familiar with. Safiri Salama is a Swahili world that means travel safely. Since most of the partnership company target customers are those traveling to sub-Saharan countries to view the tourism attraction sites, this name is very relevant (Weitzenboeck, E. 2012). Apart from being relevant, it is also easy to familiarize with it. After searching for the name in the national name index for Australia under the category of business name holder organization, there were no results. This simply meant that the business name has not been registered yet and one should go on and own the business name or alternatively reserve the name.
Requirements, restrictions and limitations of registering business name
Before owning a business name it is a requirement that one should conduct a search on the name. Name search will ensure that no one is having a similar name this is done by going to check business name availability engine or commencing registration in the ASIC service connect so that you can be notified. The result normally explains each possible result. However, their some restricted words in the register. This restriction applies to both singular and plural of these words and they include government , Architect, police, Olympic, drug, vertinary among many others(Weitzenboeck, E. 2012). The limitations of applying a business name include that it can be changed by one partner anytime without any charges, the national business index normally to some extent restrict someone from selecting the name they wish and one has to pay for the business name in order to be registered.
Following code and conduct has been considered as a very essential component in the travel and tourism industry . It normally stipulates the value that those in the business hold and what is expected of them. It also touches on many Australian policies that one should be familiar with despite their position in the industry. Despite the fact that the code and conduct might not stipulated all unethica...
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