If you are running a business in Australia, then you would have definitely heard of the terms ABN and ACN. These are registrations that have to be done with the Australian government to run specific businesses. ABN and ACN are different and have different purposes.
In this guide, we will see what ABN and ACN are all about, if and how you can register your business for it and the main differences between these two. Let’s first start with the basics of what ABN and ACN are.
What Is ABN?
Australian Business Number (ABN) is a compulsory registration for all businesses in Australia. It is a unique 11-digit number given to each of the individual businesses by the Australian Business Register (ABR).
What Is ACN?
Australian Company Number (ACN) is different from ABN. Unlike ABN, not all businesses need to have an ACN. ACN is a 9-digit unique identification number issued by the Australian Securities and Investments Commission (ASIC). The ASIC uses this ACN to monitor the companies, regulate the management and deal with unscrupulous activities.
ACN is only needed if your business is managed by a board of directors who are different from the owners or the shareholders. Anyone can use the ACN to monitor the activities of the company.
Like ABN, ACN should also be present in all documents issued by the company which include receipts, invoices, letterheads, notices, bills, orders and other similar documents. A company can have both ABN and ACN if it’s running business activities. If not, the company can only register for ABN initially and once they plan to start the business activities, then it will need an ACN.
Source: https://www.logicsofts.com.au/difference-between-abn-and-acn.html/