A trade license is a legal document a company must acquire before starting business activities. This document provides legitimacy to a company and grants it to perform various activities for which the license has been issued. It is proof that the company’s business activities will not be a hazard to anyone. It also shows that the company will not act in any way that would inconvenience anyone.

The business must acquire the company trade license before it commences its operational activities. Ideally, it should be obtained three months before starting a business. The license department issues this document, which is an authorized establishment that permits a company to carry out several activities.

This document also allows an individual not to be personally liable for their business debts. The license separates an individual’s taxes from their business taxes, and they must submit a separate file for the two. It allows the company several tax benefit that a personal tax does not receive. Furthermore, this license allows a business to join several professional groups.

A company must obtain this license before starting its business activities. Without the license, the business will be considered illegal. As a result, it may be subjected to heavy penalties. This license is also beneficial before a company begins its marketing activities. The license will be proof of the business’s lawfulness. Thus, customers, creditors, and investors are likelier to believe in the entity’s authenticity.

An ASIC license authorises you and your representatives to provide financial services to clients.

PowerFx Group is a legally licensed financial services company registered with Australian Securities & Investment Commission.

Our regulatory guides and other regulatory resources on ASIC licensing explain the terms 'financial product' and 'financial service' (as defined in the Corporations Act 2001 and the Corporations Regulations 2001) and any exemptions are explained in our regulatory guides and other regulatory resources on AFS licensing.