Australia is a more than prolific destination to start a new company, or even as the right place to expand an existing one. This country has established itself as one of the most stable for business on the entire planet, helped by great political stability, a state respectful of private property and with low levels of corruption, and of course, as one of the freest economies in the entire planet (3rd in the Heritage Foundation's Index of Economic Freedom 2021).

The global situation caused by the Covid-19 outbreak has led to a re-evaluation of the most business-friendly destinations, as not all countries have been able to cope with the crisis in the best possible way. However, Australia is among the countries that have done the best in terms of control, to the point of recording entire months with a fairly low number of cases. This speaks about its organizational capacity, as well as its potential to serve as a major business center once its economy is 100% reactivated.

Why Should you Consider Starting a Company in Australia?

There are several advantages and reasons you should think about regarding Australia when the time comes to make your next investment. As we already said, this country has one of the freest economies worldwide and it is fully committed to development and success. With that being said, we’d like to tell you some of the advantages of having a company in Australia:

-Great and talented workforce

-Wide access to several markets, mainly with Asia and its fast-growing economies.

-Australia is a safe, stable place where you can concentrate on your business’ growth.

-Access to a wide range of government programs and grants.

-There are several visa programs you can apply for if you start a business in Australia.

-Affluent inner market. Australia's high functioning and strong domestic performance allow for a wide range of businesses and sectors in which to invest.

-Low rates of corruption. Australia has one of the cleanest business infrastructures on the planet, thanks to an enormous government effort to create the most conducive and competitive environment possible.

Sectors to Invest in Australia

Australia has an unwavering commitment to merit and success. For many years now, this country has directed its efforts to create an economic infrastructure that works beyond meeting expectations and constantly seeks new goals. This pursuit of success, in addition to opening doors to great talent from various parts of the world, has also allowed the sixth-largest country on the planet to be a world powerhouse in several economic sectors.

If you are an investor with great ambitions, can bring great benefits to Australia, and wish to establish a company or business in this country, these are the sectors to which you should pay the most attention:

-Food Products

-Education

-Tourism

-Financial Services

-Natural Resources

As if this were not enough, Australia is also among the main promoters and investors of sustainable and environmentally friendly technologies, a sector that is already beginning to show great advances and important rewards for those in this niche.

Australia has achieved sustained growth of its economy, which has strengthened its business sector, allowing higher profits and important advances in its different dependencies. 

Contact us and our experts will help you to discover in which of these sectors you can have the greatest success. Our team has the knowledge and tools to provide you with the best guidance in this new stage.

Tax Policies for Companies in Australia

In our “Australia’s Freedom Rating” article, we talked to you about the taxes that companies are subject to while doing business in Australia. This country also has double taxation agreements with over 40 countries.

Despite Australia doesn’t offer any tax exemptions, there are several benefits for businesses. The Corporate Income Tax rate is set at 30% in Australia, but it counts with reductions to 26% for small businesses (aka, those below the aggregated turnover threshold of AUD 50 million).

Capital Gain Tax (30%) and Goods and Services Tax (10%) are the other main taxes you should pay attention to if you want to start a business or a company in Australia. Remember, this information has already been explained in our other article and it’s available for you (Click here)

Starting a Company in Australia

No matter what type of company you are starting, you will need to register its name in the state or Australian territory where the business will operate. 

Each type of business has its requirements and documentation to fulfill, but in general, you will need to get an Australian Business Number and the Tax File Number. Both documents are entitled by the Australian Taxation Office. After that, you’ll have to decide which type of business you’ll have. As we said before, our team of experts will help you with this. 

Once you have the type of business, you’ll need to register its name and the commercial brand and make sure to get any type of licenses you’ll possibly need. Again, our experts won’t let you down and help you with anything you may need.

Types of Companies in Australia

A) Private Limited Liability Company:

In Australia, these are usually “Proprietary Companies” (Pty), a business structure with at least one shareholder and one director who must reside in Australia. This company must be registered with the Australian Securities and Investment Commission (ASIC). There is no minimum share capital. 

If the company is controlled by foreign entities, it must provide some documents to the ASIC, which include:

-The register application, with its prescribed fee

-The Company Name

-Class and type of the company

-Detail description of the director and their secretaries

-The registered and principal business office details;

-Share structures, alongside the share members’ details.

B) Public Limited Liability Company:

This company is a “Ltd” that has more than 50 shareholders that are not employees. Unlike the Private PTY, the shares of this type of company are available to the public because they are listed on the financial market. Australian law requires this company to have at least 3 directors and one secretary (2 of the directors and 1 secretary must reside in Australia)

The documents that must be provided to the ASIC are these:

-The register application.

-The company’s name.

-A copy of the company’s constitution.

-Type of the company.

-The registered and principal business office details.

-Details of the Directors and the secretaries.

-Detail description of the share structure and its members

C) Partnership:

Unlike the two other types we have explained, the partnership doesn’t have a limited liability nor a “legal personality” either. There are some rules to follow for a partnership to exist:

-There must be a valid agreement between the parties.

-Intentions of carrying out a business.

-Ownership in common.

-The intent of making profits.

This is a structure made by 2 or more people who distribute the incomes and losses between themselves. In Australia, there are 3 types of partnerships: General Partnership, Limited Partnership, and Incorporated Limited Partnership. It is easy to set up and doesn’t have enormous expenses, but you still must apply for an Australian Business Number. Another key fact is that the partnership doesn’t pay income taxes. These are paid by the partners based on the amount of the respective share of the net benefit they have received from the partnership.

D) Branch and Representative Office:

This company doesn’t count with a legal personality but is recognized by Australian law. This type is mostly used by companies registered abroad interested in the pursuit of activity as a “foreign company” in Australia.

As any other type of company, branch and representative offices must be registered with ASIC, with these documents:

Certified copy of registration or current certificate.

-Certified copy of the Company’s constitution.

-Memorandum of appointment of a local agent.

-Notices of any charges over any Australian property.

-The company must pay the appropriate fee.

Starting a new company in Australia is a great idea if you are looking to establish yourself in an environment open to foreign investment and respect for private property. On the world's largest island, you will undoubtedly find a wide variety of sectors in which to invest, to generate great profits. 

Australia is in a constant search for growth and success, so if you have that to offer, you will have many opportunities.

Contact us today to start the process of setting up your company in Australia. Our experts will be with you throughout the process. Don't miss this opportunity.

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