Benefits and problems

Benefits and problems of registering a company in Australia

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  • Benefits and problems

    Benefits of Australia company registration

      Australia business registration advantage
    1. Our Clients will find it exceptionally easy to setup their businesses in Australia because:

      • An Australian company can be registered within 1 week, by 1 director and 1 shareholder of any nationality. Furthermore, there is no requirement for minimum paid up share capital;
      • Australia hosts a large number of reputable local and international banks. Healy Consultants has excellent relationships with these banks, which will enable our Clients to open bank accounts without travel to the country;
      • As a result of the above, the World Bank ranked Australia as the 11th best jurisdiction for “Starting a Business” in their annual Doing Business survey.

    2. An Australian company affords Clients certain advantages including:
      • Australia promotes free trade and has concluded trade agreements with multiple countries including New Zealand, Thailand, Singapore, and the US;
      • Investors can obtain government incentives through Australian Trade Commission (Austrade), which 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;
      • Our Clients registering an Australian company will benefit from a reduced tax rate of 28.5% (compared to the previous corporate tax rate of 30%) for companies that have an aggregated annual turnover of less than AU$2 million;
      • Our Clients’ return on investment will be boosted by the exchange rate of the Australian dollar. The AU$ is a safe currency, which should appreciate by over 10% against the USD by 2016, according to the IMF. Our Clients’ Australian assets will henceforth i) gain value overtime and ii) be sold with an appreciable markup;
      • Dividends and capital gains received from both Australian and global subsidiaries are subject to a reduced corporate tax rate of up to 15% if i) the shares have been held for 1 year and ii) represent over 10% of the subsidiary’s share capital.

    Problems with Australia company registration

    1. In accordance with Section 201A of the Australia Corporations Act 2001, every Australian Company shall have at least one director who is ordinarily resident in Australia. Most of our Clients request Healy Consultants to provide the resident director. If required, Healy Consultants’ resident director service fee amounts to AU$5,910 per annum;
    2. Domestic and international income suffers corporation tax at 28.5%. 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 AU$100,000, an audit exemption will be granted;
    3. A public register of shareholders and directors is publicly available. Although this limits privacy, it enhances commercial transparency in Australia.
  • Best uses for an Australian company

    1. Healy Consultants recommends our Clients to choose Australian as their base for Asia Pacific operations because:
      • An Australian company is the perfect corporate vehicle for stating a new business as it enjoys excellent reputation with Clients, suppliers, investors, and venture capitalists;
      • Our Clients who wish to promote their business to stakeholders in New Zealand and the Pacific Islands can take advantage of Australia’s proximity to these countries. This is made easier since an Australian company’s resident director can also satisfy New Zealand’s resident director requirement;
      • Our Clients will find it easy to operate in Australia since the country i) is English speaking ii) has a well-educated labour force and iii) has a well-developed financial sector;
      • Lastly, the World Bank ranked Australia as the 13th best jurisdiction in the world in the annual “Doing Business” survey.

Contact us

For additional information on our company registration services in Australia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen
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