Changing your client's business structure
If your client changes their business structure, they may need to cancel their existing Australian business number (ABN) and apply for a new one.
Before changing a business structure, it’s important to consider any impact this may have on their business and clients. A new business structure may change their tax obligations and other business registrations.
Where a new ABN has been granted, you must ensure all invoices and business documents are updated with the new ABN.
Examples of when your client need to cancel their ABN include if their business goes from a:
- individual/sole trader to a partnership
- partnership to a company
- individual/sole trader to a company
- company/incorporated/unincorporated entity to a trust
Keeping the same ABN after a change in business structure
There are some circumstances where an entity can keep the same ABN after a change in business structure, including if the entity goes from an:
- Australian private company to Australian public company (and vice versa)
- Australian private or public company to Other incorporated entity under the Corporations (Aboriginal and Torres Strait Islander) Act 2006
- incorporated association, registered under state or territory law, to Australian public company (limited by guarantee).
Entity type changes cannot be actioned online or via the Change of registration details form. You will need to contact the Australian Taxation Office (ATO) to have the entity type reviewed.
Correcting the entity type
In very limited circumstances, the Registrar will consider correcting an ABN record where an administrative error was made at the time of registration. For example, if an incorrect entity type was selected when applying for an ABN, the record would be corrected. Other changes may include correcting the entity from an:
- Australian private company to Australian public company (and vice versa)
- other unincorporated entity to other incorporated entity.
If your client has made a mistake with their entity type when applying for their ABN, they can contact the ATO. They will need to provide evidence of their entity registration, such as state or territory documents showing incorporation. We will review the request to establish if a correction is appropriate.
For more information, see Business structures - key tax obligations.