New measures to be brought in from 1 July 2016, will allow for a smoother application process for registering a new business, with a commitment to reduce the number of business identifiers.

The process for applying for registration as a company under the Corporations Act and applying to be registered in the ABR under the ABN Act will now be linked.

Under the new measures:

  • new companies will be issued with a single numerical identifier, an ABN
  • the company will be registered for ABN purposes at the same time it is registered as a company under the Corporations Act
  • ASIC will no longer issue a company with an ACN
  • new companies will be unable to use the ACN as their name

The measures, as part of an overall commitment to reduce business red tape are welcomed, especially for developers who often incorporate new companies to act as special purpose vehicles for each project.

Next article: Redundant corporate entities?