Success tips when doing business in Australia
- Australians value an egalitarian society. Our Client should therefore keep in mind that effective management styles in Australia are those that treat everyone equally regardless of their position in the company hierarchy;
- Despite the remoteness of Australia and its small domestic market, Australian companies actively conduct international business and the country is economically successful with a comparatively high standard of living;
- Government agencies play an important role in day to day Australia business operations and companies deal with government agencies on a regular basis;
- Australians value directness and hence, during business presentations, our Client should be straightforward and transparent.
Interesting facts about Australia
Geography and society
- Australia is the world’s sixth largest country, a vast continent covering 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;
- 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 to review the overall richness of a citizen’s life in the country of study;
- Australia is well ranked as the 13th least corrupt country in the world in the 2015 Corruption Perceptions Index (CPI) by Transparency International;
- According to the 2016 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.
- It is not necessary to give your company a name when doing business in Australia. Your entity name can simply be its Australian company number;
- The Australian Securities Exchange (ASX), the 9th largest in the world, was formed in 1987 through the amalgamation of six independent stock exchanges and became a listed company on 13th October 1998;
- Australia is also ranked positively as the 22nd most competitive country for business, in the World Economic Forum’s Global Competitiveness Report 2015, taking into account factors such as infrastructure, macroeconomic stability, health and education, labour market efficiency and technological innovation.
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.