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Australia company registration

Healy Consultants Group PLC
26 February, 2014

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. Having China as the largest trading partner, Australia is a great jurisdiction to start your business.

There are many advantages to Australia company setup, including:

1.    An Australian company in the form of a limited liability company can be incorporated within one week, with a minimum of one shareholder and one director of any nationality. The minimum paid up share capital is US$1 and our Client will not need to travel to complete the company registration engagement;

2.    Australia company formation is simple and fast. It requires a minimum of one director and one shareholder. Company registration of a limited liability company (LLC) allows 100% foreign ownership and it has no minimum capital requirements;

3.    Company registration of an offshore company can conduct business throughout Australia without needing to register in individual states and territories;

4.    Company registration in Australia promotes free trade and has concluded trade agreements with multiple countries including New Zealand, Thailand, Singapore, and the US;

5.    Because of the excellent image provided by Australia company formation, Australia business setup is a suitable corporate vehicle to promote to Clients, suppliers, investors, and venture capitalists;

6.    An Australia company formation of an LLC enjoys the benefits of 44 international double taxation treaties, thus minimizing withholding tax;

7.    Investors starting business in Australia can obtain government incentives, for example through Austrade, which is the Australian government’s trade and investment development agency. Austrade helps international companies source goods and services from Australia. Austrade also identifies potential Australia investment projects and strategic alliance partners for those intending to pursue company registration.

Investors starting businesses in Australia should consider the following accounting and tax regulations:

1.    Australian companies are taxed at a flat company tax rate of 30% for both domestic and international income streams. In contrast, individuals are taxed at the normal marginal rates of tax – with the top tax rate being 46.5%;

2.    Audited financial statements and a corporate tax return must be submitted annually to the Australian Taxation Office following Australia business setup. It is usually possible to obtain an audit exemption if turnover is less than $100,000;

3.    Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. Registration for GST is compulsory for companies who turn over more than $75,000 per annum. Once registered for GST, a company can charge GST on the products and services it provides and also claim back GST against expenses made for the business;

4.    Following Australia business setup, a company public officer must be appointed. A public officer is a company’s representative to the ATO and is responsible for the company complying with the Australia Tax Acts. The public officer must be an Australian resident and does not need to be a director of the company. Usually, our Clients appoint Healy Consultants as the public officer as part of the Australia business setup services;

5.    If fully franked dividends (that is, dividends derived from profits on which Australian corporate tax has been paid) are paid by an Australian subsidiary to its foreign parent, no dividend withholding tax is payable. To the extent that dividends are unfranked, dividend withholding tax of 30 per cent (or as reduced under the relevant double tax treaty) is payable on the gross unfranked amount;

6.    If an Australian company pays royalties to a foreign resident, the royalties will be subject to royalty withholding tax at the rate of 30 per cent (or as reduced under the relevant double tax treaty) and may give rise to transfer pricing issues;

Australia is also ranked positively as the 20th most competitive country for business, in the World Economic Forum’s Global Competitiveness Report 2011-2012, taking into account factors such as infrastructure, macroeconomic stability, health and education, labour market efficiency, technological readiness and innovation. Therefore, the country continues to be a favorite destination for investors around the world. 

About the Author

Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com


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