Foreign investors are widely considered a major contributor to Australia’s economy. The country is open to foreign direct investments and has a creative and highly educated workforce. It also helps that its economy is ranked 14th in the world with a GDP of almost $2 trillion. So, if you’re considering starting a company overseas, you might want to consider Australia’s business landscape.
As a foreigner, there are compliance and legal requirements that you need to navigate before you can establish your business. This is where resident director services in Australia would prove helpful. Their knowledge of the local industry and business landscape will pave the way for a smoother journey. What do you need to know as a foreign investor in the Land Down Under?
- Get a work visa
The Department of Home Affairs oversees the application of visas in the country. Before you can initiate any business process, you must first obtain a work visa. Your eligibility will depend on several factors. One of these is that you need to be nominated by a state or territory government to lodge an application. You can choose between two primary visa categories: Business Innovation and Investment (Provisional) visa and Business Talent visa. The former is for individuals with existing business skills, while the latter is for those who received an invitation to apply or through nomination.
- Decide a business structure
There are several business structures in Australia. These are sole trader, company, partnership, trust, cooperative, indigenous corporation, and joint venture. It’s important to choose a business structure before anything else, as this will dictate other requirements you need to comply with, such as the licenses, tax, and personal liability. Business structures vary in terms of costs, setup complexity, tax and legal obligations, ownership, responsibility for business decisions and debts or losses, the need for a separate bank account, and extra administration and reporting. Consider your company’s needs in choosing a structure.
- Pick a business name
You need a business name that you must register with the Australian Securities & Investments Commission (ASIC) so you can legally operate a company. Make sure to pick a business name that isn’t registered yet or doesn’t violate any trademarks or copyright laws. To check for availability, use a business name check tool or visit the ASIC’s registry.
- Have a legal business address
Unless you operate as a sole trader, you must have a registered office address within Australia and not a PO box. This will be tagged as the registered address where all official communication from the ASIC will be sent. You will also need an address for your principal place of business where operations are mainly carried out. It will also serve as a point of contact for suppliers, clients, and other third parties. You can’t use a post office address as your business address.
- Register your business
As previously mentioned, all businesses must be registered with ASIC. The process can be completed online through the Australian Government’s Business Registration Service (BRS). You must be ready with the business name, registered office address, the company secretary’s contact details, and information on your partners/directors and shareholders upon registration. Yes, a company in Australia must have directors and shareholders. Depending on whether it’s a public or proprietary company, there must be at least one to three directors living in Australia with a valid Director Identification Number (Director ID). You should also have at least one shareholder of any nationality.
You’ll also be required to nominate a local agent whether an individual or an Australian company to accept services and notices on your company’s behalf. This is necessary to better manage risks and issues that may arise. Once registration is complete, you’ll receive an Australian Company Number (ACN) from ASIC, which you will use to apply for an Australian Business Number (ABN). After you register with the ABN, you will receive a certificate of registration.
- Get a tax file number (TFN)
You can register for a TFN either online or at the Australian post office. This is necessary for tax filing purposes. A sole proprietor only needs one TFN to file business returns, but other business structures would need a distinct number registered specifically for the business. In this case, the application is processed along with the ABN.
- Enrol for ABN
An Australian Business Number is an 11-digit identifier that indicates your eligibility to operate in the country. It also differentiates you from the government and community. You’ll need to supply proof of identity, TFN, and an outline of your intended business activities during the application. The ABN you obtain will be used in dealing with taxes and other business activities, such as invoicing and GST credit claims.
- Enrol your business name
Business name registration can happen at the same time as when you’re applying for the ABN or after receiving it. You can apply for both using the BRS. The platform also consolidates many business and tax registrations, providing convenience when starting a business.
After your business name is registered, you’ll then register for goods and services tax, open a local bank account, and start your application with local licenses and permits. Given all these things you need to accomplish, working with an experienced and Australian-based Resident Director will simplify the process and ensure compliance. So start your business the right way with help from Accline Australia, your trusted provider of a complete suite of corporate and advisory services in Asia-Pacific.