When determining who is the principal contractor and therefore requiring a Contractor’s Licence, the first question that you need to ask is, when I invoice for a job, where does the money go?  Are the proceeds from the invoice going to:

  • your own personal bank account,

  • a company (Pty Ltd) bank account;  

  • or a joint account (partnership)?


All have consequences when it comes to licensing and ensuring that the correct contracting entity is licensed.

All have consequences when it comes to licensing and ensuring that the correct contracting entity is licensed.  Working through the licensing requirements and to make sure that you are covered and not at risk of being in breach can be confusing and expensive.  If you do not have the correct licences in place you are at risk of being investigated and fined for unlicensed contracting.

Each State and Territory has its own specific contractor requirements, including:

  • ASIC information about the Directors of the Company,

  • Financial information about the contracting entity whether it be as a sole trader, partnership or company,

  • Fitness and proprietary of a person about previous business dealings; and

  • Criminal convictions or previous building work breaches.


Just because you have your own personal licence does not mean that you are in the clear.  Careful analysis of how you are carrying out your business needs to be considered. Similarly, who you are carrying out business with and whether or not there is a direct impact on your businesses’ ability to get licensed in the building and construction industry.

License2Build can help you navigate through all of the requirements.  We will ensure that you are advised appropriately to make an informed decision about the correct licences for your own personal business structure.

License2Build will organise and prepare all of the necessary documentation including liaising with your accountant or solicitor to cover all of your bases.  In our next blog we will discuss “What is a Company”

Call License2Build now to discuss your business licensing requirements.