Australia has always been an enticing market for business growth. Australia’s market entry is a significant factor for international entrepreneurs. When choosing to open a business in Australia, there are several steps you must take.
There are different legal structures you may choose when opening a business. The main business structures are:
- Sole trader: one person running a business.
- Partnership: an association of individuals or organizations running a joint venture (not as a company).
- Company: legal entity separate from its owners.
- trust: an agency which holds property or revenue for their trustees.
Fortunately, there is no set business structure in place. As the business expands, investors can adjust the company’s structure whenever they want.
Company Number of Australia (“ABN”)
ABN is a unique number by which other companies or the Australian Government can recognize the company. It also requires a firm to register a.au or.net.au domain name. Registration is quick and can be done online or through an accountant.
Company and intellectual property name
Business owners must register their business name with The Australian Securities and Investments Board (ASIC). This process can be made easier with Accountants Parramatta. By hiring an accountant, they can take care of everything from applying your ABN to registering your business name, and everything in between. Before registering your business name, head online to the ASIC website to check the availability of the business name you want. Businesses should also regard the security of their trademarks and domain names.
Different licenses may be necessary to operate, depending on the company’s type, location, and industry. The Australian Government’s business website is a useful tools aspiring business owners can use to help find what license and permits are applicable to their business and how to obtain them.
The payment of taxes is a matter of course, and life would be much simpler for a company to have a transparent system from the very start.
Both sole traders and companies in Australia give the Australian Tax Office (ATO) a specific Tax File Number (TFN) which is an obligatory condition. Only sole traders and owners who work under their names may use their taxation TFNs. Companies will require different tax obligations and will have to lodge their own tax returns.
There are different taxes to be charged according to the organisation, as in many other countries some examples include:
Goods and services tax (GST)
In various cases, GST is payable. The most significant will be when a corporation has a turnover of $75,000 or more in the Goods and services sectors. Or if you are a corporation importing digital services or products worth less than $1,000 each individually and you receive over $75,000 a year.
Gain Tax Fringes (“FBT”)
The company provides its workers with certain forms of marginal benefits, such as vehicles, expenses such as schooling or health care; the company has to sign up for FBT first.
One of the advantages of doing business in Australia is the many funds and grants, among the Australian Government’s comprehensive support. This depends again on where and when the organization is based. In Adelaide, for example, start-ups may be eligible for a Small Business Development Fund of $20,000. New companies need to pay attention to the resources and grants they may earn, potentially instrumental.
A Business Talent Visa may also be available if you:
Whole or in part-owns a multinational enterprise with a net company and personal assets amounting to $1.5 million with yearly revenue of at least $3 million and a high-value corporate concept with a minimum of $1 million in venture capital financing in Australia.