Success tips when doing business in Australia
- Australians value an egalitarian society. Effective management styles are those that treat everyone equally regardless of their position in the company hierarchy;
- Despite the remoteness of Australia, conducting international business is common for Australian companies. Healy Consultants recommends Clients consistently use and sign contracts of service when doing business in Australia to provide protection if disputes arise;
- Government agencies play an important role, like all countries. All businesses deal with government agencies on a regular basis. This is where foreigners pursuing business registration should exercise restraint and be patient as much as possible as government authorities would always have the final say in any matter;
- Australians are relaxed people until it comes to business. Then they become mistrustful.
Interesting facts about Australia
- Australia is the world’s sixth largest country, a vast continent covering a distance of approximately 3,700 kilometers from its most northerly point to its most southerly point and is almost 4,000 kilometers wide from east to west. Australia is comprised of six states and two territories. China is Australia’s largest trading partner;
- It is not necessary to give your company a name. Your entity name can simply be its Australian company number;
- The Australian Stock Exchange (ASX) was formed in 1987 through the amalgamation of six independent stock exchanges and became a listed company on 13 October 1998. On 25 July 2006, the Australian Stock Exchange Limited merged with Sydney Futures Exchange (SFE) Corporation Limited, making the combined entity the 9th largest listed exchange in the world. The exchange is an ideal venue for trading both Australian securities and foreign issues, and is one of the stock exchanges considered by multinational firms looking to conduct IPOs;
- Australia is well ranked as the 11th least corrupt country in the world in the 2014 Corruption Perceptions Index (CPI) by Transparency International;
- According to the 2012 Quality of Living Survey by Mercer Human Resources, Australia offers a high standard of living, with 4 cities in the top 5 within Asia Pacific;
- As evidence of this, in the World Bank’s Doing Business 2014 Survey, Australia ranks 10th. For the key factor of starting a business, Australia is ranked as the 7th easiest jurisdiction;
- Australia is also ranked positively as the 22nd most competitive country for business, in the World Economic Forum’s Global Competitiveness Report 2014 – 2015, taking into account factors such as infrastructure, macroeconomic stability, health and education, labour market efficiency, technological readiness and innovation;
- Australia benefits from a relatively high GDP, a reputable education system and high life expectancy rates. As support for this, Australia is currently ranked as having the second highest Human Development Index (HDI) in the world. the HDI is an annual report undertaken by the United Nations.
Frequently asked questions
Can an Australia 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 Australia 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 an Australia business?Australia resident company 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 business is deemed to be Australia resident company 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 for an Australia business?It is easy to open an international corporate bank account.
Are there any non-tax incentives available to investors planning to set up in Australia?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 Australia business need to prepare and submit annual accounts?An Australia company must submit annual accounts, tax return and undergo an audit.
How many directors must an Australian company have?Only one director is required. Corporate directors are allowed.
Does an Australian company need a resident director?To comply with Australian corporations law, at least one company director must be resident in Australia.
Are there any minimum capital requirements to set up an Australian company?There are no minimum capital requirements.
What is the minimum number of shareholders required?There is a public register of shareholders, directors and beneficial owners of every Australian company.