Advantages of Australia company registration
- An Australian company in the form of a limited liability company (LLC) can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. The minimum paid up share capital is US$1 and our Client will not need to travel to complete the business registration engagement;
- In accordance with Section 201A of the Australia Corporations Act 2001, every Australia Company shall have at least one director who is ordinarily resident in Australian. Most of our Clients request Healy Consultants to be the resident director. If required, Healy Consultants resident director service fee amounts to AUS$4,950 per annum. When appointing a nominee Healy Consultants collects a refundable deposit of AU$1,500 per nominee;
- Business registration in Australia is simple and fast. It requires a minimum of one director and one shareholder. Business registration of a limited liability company (LLC) allows 100% foreign ownership and it has no minimum capital requirements;
- Offshore company can conduct business throughout Australia without needing to register in individual states and territories;
- Australia promotes free trade and has concluded trade agreements with multiple countries including New Zealand, Thailand, Singapore, and the US;
- Because of the excellent image, Australia business is a suitable corporate vehicle to promote to Clients, suppliers, investors, and venture capitalists;
- An Australian Limited Liability Company (LLC) enjoys the benefits of 44 international double taxation treaties, thus minimising withholding tax;
- Investors can obtain government incentives, for example through Austrade, which is the Australian government’s trade and investment development agency. Austrade helps international companies source goods and services from Australia. Austrade also identifies potential Australia investment projects and strategic alliance partners for those intending to pursue business registration.
Disadvantages of Australia company registration
- In accordance with the Australia Corporations Act 2001, business registration requires at least one director who is ordinarily resident in Australia. As part of our services, Healy Consultants can act as the nominee Australia-resident director;
- Domestic and international income suffers corporation tax at 30%. Furthermore, every company is required to submit annual audited financial statements and a corporate tax return to the Australian Taxation Office (ATO). If the company’s sales revenue is less than AUD100,000, an audit exemption will be granted;
- A public register of shareholders and directors is publicly available. Although this limits privacy, it enhances commercial transparency in Australia.
Why invest in Australia?
- Australia Deloitte – Economic Outlook of Australia
- Australia Deloitte – Taxation and Investment Guides
- Australia Deloitte – Australia Highlights 2013
- Australia KPMG – Doing Business in Australia
- Australia PwC – Doing Business in Australia
- 2013-14 Worldwide Corporate Tax Guide – Australia
- PWC – Australia Tax Summary
The following are some of the most frequently asked questions about business registration in Australia:
Can an Australian company conduct international business?
A properly structured Australia private limited company is an excellent corporate vehicle through which business in Australia, and internationally, can be conducted.
What makes Australia a good base for international companies?
An Australian company projects an excellent image to your customers, suppliers and potential investors. Australia also permits 100% foreign ownership. In addition, Australia is considered one of the easiest places in the world to do business.
What are the tax incentives associated with incorporating a company in Australia?
If income and capital gains have already been taxed in a foreign jurisdiction, then exemptions are available.
What are the negative tax implications of setting up an Australian company?
Australia-resident companies must pay income and capital gains tax on worldwide-sourced income. The Australia corporate tax rate is 30%.
What is the definition of an Australia resident company?
A company is deemed to be Australia resident if it has been formed in Australia; if the company’s central management and administration is in Australia, even if it was formed in another jurisdiction; and if the company conducts business in Australia and its voting control is in the hands of resident Australian shareholders, even though it was incorporated in another jurisdiction or its central management is in another jurisdiction.
Do non-resident companies enjoy and tax benefits?
Non-resident companies are taxed only on Australian-sourced income and capital gains on the disposal of certain taxable Australian assets if acquired on or after 20 September 1985. (Capital gains on assets acquired before that date by non-resident entities are usually received free of Capital Gains Tax).
How easy is it to open a corporate bank account?
It is easy to open an international corporate bank account to support an Australian company.
Are there any non-tax incentives available to investors?
The Australian government provides incentives on a case-by-case basis. Incentives include assistance in training, research & development (R&D) and export market development; streamlined immigration procedures; assistance with obtaining information for site selection and introductions to relevant government agencies and professional service providers.
What are the criteria to be eligible for incentives?
According to the government-run agency InvestAustralia, the Federal government provides incentives if it considers that a project offers significant economic benefits to the country.
Does an Australian company need to prepare and submit annual accounts?
An Australian company must submit annual accounts, tax return and undergo an audit.
How many directors must an Australia company have?
Only one director is required. Corporate directors are allowed.
Does an Australia company need a resident director?
To comply with Australian company law, at least one company director must be resident in Australia.
Are there any minimum capital requirements?
There are no minimum capital requirements.
Are Australia company structure details made available to the public?
There is a public register of shareholders, directors and beneficial owners of every Australian company.
For additional information on Australia company formation, you can email us at firstname.lastname@example.org or phone us in Australia at (+61) 2 8014 7568. Address: Lvl 9 St Martins Tower, 31 Market Street, Sydney 2000.