In this guide, we provide you with 6 reasons to register company in Australia and the steps to do the same.
Why should you set up a company in Australia?
- Political and economic environment:
- Australia has a stable political and economic environment which can be seen from its scores on various indexes and rankings including the following:
- Australia has a ranking of 11th out of 180 countries in 2020 as per the Transparency International’s Corruption Perception Index. This implies that there is relatively low corruption in the country.
- According to the World Bank’s Doing Business Report of 2020, Australia has a ranking of 14th out of 189 countries in terms of ease of doing business.
- Australia was ranked as the 18th most competitive economy in the world as per the Global Competitiveness Report by the World Economic Forum.
- Additionally, Australia is the 3rd freest economy in the world as per the 2021 Index of Economic Freedom by the Heritage Organization.
- Besides the above, Australia also has a well-established political system along with a strong legal system. This ensures that any problems arising for the business are settled without any problems.
- Stable Economic growth:
- Australia has a relatively stable growth rate. After the impact of the Covid-19 pandemic, the government has undertaken various measures to bring back the economy to the pre-pandemic level.
- Australia holds a record of having uninterrupted and stable economic growth for over a period of 2 decades.
- Infrastructure and Workforce:
- The Australian government has actively invested in the development of Australia leading to the development of its transportation and communication infrastructure.
- The government has also recently initiated a 10-year infrastructure program that will not only lead to economic growth but also provide jobs. This project will subsequently be beneficial to the businesses that can take advantage of the improved infrastructures available in Australia.
- With a population of approximately 26 million and a high literacy rate, businesses can take advantage of the large and highly skilled labour force. In fact, Australia’s quality of information is known to be of high quality.
- Strategic Location and connectivity:
- Surrounded by the Indian Ocean and the Pacific Ocean, businesses can take advantage of Australia’s strategic location.
- Not only will businesses have access to the Asian-Pacific region but also to American and European markets with whom the government has established strong relations.
- With its established and growing transportation infrastructure with over 60 seaports, 600 airports, and sound road systems, Australia is well-connected to the world.
- Diplomatic Relationships:
- The Australian government has established strong bilateral relations with various countries including the United States of America, India, China, Japan, and more.
- The government has also established an extensive network of treaties including Free Trade Agreements and Double Taxation Avoidance Treaties.
- Besides this, Australia is a member of various organisations including ASEAN, World Trade Organisation (WTO), OECD, and more.
- Business-friendly policies:
- The Australian government has passed various policies which are beneficial to businesses including allowing foreign individuals to have complete ownership of their business, ensuring fewer compliance requirements and more.
- The government actively regulates and licenses cryptocurrency and other FinTech products and services.
- The government also provides small and medium businesses with various incentives and benefits to encourage the establishment and continuation of the businesses.
How to set up business in Australia?
Step 1: Choose a suitable business structure:
- There are different types of businesses available in Australia including the following:
- Sole Proprietorship
- Limited Liability Company
- Holding Company
- Branch office
- Representative Office
- Tetra Consultants will first understand your business activities, requirements, and long-term business goals before recommending a suitable business entity for you.
- We will then advise you on the requirements you will be required to meet.
Step 2: Register the business with the Australian Business Registration System (BRS):
- You must first register your business with the Business Registration Service to obtain the Australian Business Number (ABN) or Australian Company Number (CAN), which depends on your choice of business structure.
- Tetra Consultants will register the business on your behalf.
Step 3: Reserve your preferred business name:
- You can reserve your preferred business name in the previous step when applying for the Australian BRS or you can apply to the Australian Securities and Investments Commission (ASIC)’s business name registers to do the same.
Step 4: Review Application and Make Payment:
- You must prepare any documents you may require and submit the application with the authorities. Tetra Consultants will advise you on the documents you will need to prepare.
- You must also pay the required government fees.
Step 5: Register for Tax:
- After the registration process is completed, Tetra Consultants will register the business for tax with the Australian Taxation Office to receive the Business Tax File Number.
- We will also register the business for any additional taxes required including the Goods and Services Tax, pay as you go (PAYG) Withholding Tax, and more.
Step 6: Register for Business License:
- In order to conduct certain business activities in certain locations, you will be required to obtain a Business License.
- For more information on licenses and permits your business may require, you can refer to the Australian Business License and Information Service.
Step 7: Open a corporate bank account:
- Tetra Consultants will leverage our extensive banking network to open a corporate bank account for your business.
Step 8: Staying compliant with government regulations:
- Once the incorporation process is completed, Tetra Consultants will continue to ensure that your business is compliant with the government policies.
- There is no need to submit annual reports for your business. However, you must make timely tax payments.
The registration process is completed within a period of five days, which is relatively quicker than in other countries. You will not be required to travel to Australia through this entire process.
We, at Tetra Consultants, understand that the process to register company in Australia may be cumbersome and would therefore like to offer you our services. Our comprehensive service package includes the following:
- Planning and strategizing with our clients
- Completing the incorporation process
- Opening a bank account
- Ensuring business’ compliance with the government policies.
Contact us now to know more about why you should register your business in Australia and how to do the same. Our dedicated team of experts will revert to you within the next 24 hours.