How to go about starting an Electrical Business (PTY LTD) in Queensland

Starting an electrical business in Queensland as a PTY LTD (Proprietary Limited Company) is an exciting venture with excellent growth potential. However, there are essential steps you must follow to ensure your business is set up legally, runs smoothly, and attracts clients. Here’s a step-by-step guide for starting your electrical contracting business in Queensland.

1. Obtain the necessary qualifications and experience before starting an Electrical Business.

Before starting your electrical business, having the right qualifications is crucial. In Queensland, you must be a licenced electrician with sufficient experience (at least  2 years) to apply for an Electrical Contractor Licence. This licence enables you to contract for electrical work and employ other electricians.

To qualify as an electrical contractor, you must:

• Hold a current Unrestricted Electrical Work Licence.
• Complete additional training, such as an Electrical Contractor Course (refer to step no.2) offered by accredited Registered Training Organisations (RTOs), such as AUSINET. This course focuses on business law, electrical safety, and contractor obligations.
• Demonstrate sufficient experience in the electrical industry, typically 2-3 years post-apprenticeship.

Please refer to our blog if you previously held a licence and want to renew your Electrical Work Licence.

2. Obtain an Electrical Contractor Licence

To legally operate as an electrical contractor in Queensland, you must obtain an Electrical Contractor Licence from the Electrical Safety Office (ESO). This licence is required to perform electrical work for payment and ensures your business complies with the Electrical Safety Act 2002.

To get your Electrical Contractor Licence, you’ll need:

• A current Queensland Electrical Work Licence.
• To have completed relevant units in an Electrical Contractor Course focusing on the legislative and business aspects of operating an electrical contracting business. This course includes the QTP course and QBP course, i.e., qualifications for the qualified persons nominated by your business.
• Get the QTP and QBP endorsed on the electrical contractor’s licence, whether distinct or the same person.
• Adequate business insurance, such as public liability and consumer protection insurance (refer to step 3).

3. Secure the right insurance for your Electrical Business.

Insurance is a non-negotiable part of running an electrical business in Queensland. As a PTY LTD, you will need a combination of:

• Public liability insurance that covers injuries and property damage caused by your work.
• Professional indemnity insurance that protects against claims of carelessness or negligence.
• Workers’ compensation insurance, if you employ other electricians.

Working with a business insurance provider can assist you in creating a package that is tailored to your specific electrical business needs.

Section 51 of the Electrical Safety Regulation 2013 enlists the insurance policy requirements, ensuring you comply with them. The insurance must be issued in the business’s legal name, asking for the licence, and contain public and product liability. A minimum indemnity limit of $5,000,000 and consumer protection insurance of $50,000 are required.

4. The application process for an electrical contractor licence in QLD

To apply for an electrical contractor licence, you must:

i) You must complete Form 18: Application for a Queensland Electrical Contractor Licence.

ii) Provide information on the QTP and QBP nominees for the licence.

iii) Provide details of insurance.

iv) Lodge your application along with the applicable fee.

Note: The QTP and QBP can be sole traders, partners, directors, employees, members, or employees for the various business structures available.

Please refer to our blog if you previously held a licence and want to renew your Electrical Contractors Licence.

5. Register your Electrical Business as a PTY LTD

Setting up your electrical business as a PTY LTD provides you with legal protection by separating your personal assets from business liabilities. This step entails registering your firm with the Australian Securities and Investments Commission (ASIC). Here is all of the information you need to provide:

1. Name and contact details of the applicant
2. Address and contact information for the business or group
3. Details about each individual or organisation involved with the electrical business (e.g. partner, director, secretary or shareholder)
4. Tax agent number (if you’d like to use one)
5. ABN reference number (for unfinished applications)
6. Details of business activities
7. Tax file number (optional for ABN)
8. Proof of identity information that includes name, address, and birth date
9. Business structure
10. Business activity details
11. Proposed business name (up to five names per application)
12. Business name transfer number (when purchasing an existing business)
13. Credit card details
14. Current or projected annual turnover
15. BSB & account details for refunds

The cost of registering your business name with the Australian Securities & Investments Commission (ASIC) is $44 for one year or $102 for three years as of 06/09/2024. Refer to the ASIC website for the latest fees.

Read our blog on ‘Transfer your Sole trader electrical business to PTY LTD‘ if you are already registered as a sole trader and intend to transfer to PTY LTD.

6. Create a business plan for your Electrical Business.

A solid business plan is the backbone of your electrical company. Your plan should include:

• A thorough examination of the market, including your target audience.
• What services do you intend to offer? – such as general electrical work, solar installations, or industrial wiring.
• A marketing strategy to reach clients in Queensland.
• Financial planning, including cash flow forecasts and budgets.

By having a detailed business plan, you’ll understand how your business will operate and serve as a roadmap to secure potential financing or investments if needed. To learn more about how to develop a business plan register for the QBP course.

7. Develop an Online Presence

In today’s digital age, having a presence over the internet is crucial. Create a professional website where potential clients can learn about your services, check your qualifications, and quickly contact you. Using SEO strategies, you can rank higher in search engine results, making it easier for locals to find your electrical business.

Consider listing your business on directories like Google My Business and create profiles on social media platforms where you can showcase your work and engage with your audience.

8. Hire Qualified Electricians and Staff

As your business grows, you may need additional electricians and administrative staff. Ensure that anyone you hire is licenced and experienced to maintain the quality and safety of your business’s services.

When hiring, follow Queensland’s workplace laws and ensure you provide adequate training and support for all employees. Having a solid team will contribute to your company’s success and reputation in the long term.

9. Understand Your Legal Obligations

As the director of a PTY LTD electrical business, you ensure that your company complies with Queensland’s electrical safety regulations. This includes:

• Adhering to the Electrical Safety Act of 2002 and its requirements.
• Keeping proper records of all electrical work completed.
• Ensuring that licenced professionals perform all electrical work and meet safety standards.

Regular audits by the Electrical Safety Office ensure compliance with these obligations, so staying informed and compliant is essential for your business’s longevity.

Conclusion

Starting an electrical business (PTY LTD) in Queensland is an exciting and rewarding process, but it requires careful planning and adherence to regulations. You can build a successful and sustainable electrical contracting company by securing the necessary qualifications, registering your business, obtaining an Electrical Contractor Licence, and creating a solid business plan. With the proper training, insurance, and marketing strategies, your electrical business will be well on its way to success. For more detailed training options and advice, explore the resources at AUSINET, a trusted electrical training provider in Australia.

Last updated: 11/07/2025