How to set up company in Australia?
Australia is our home country for our practice. We are registered Public Certified Practicing Accountants, a CPA Practice, Registered Practicing Tax Agent with the Taxation Practice Board and Registered Agent for Australian Securities and Commission Investment.
We provide one stop shop services from Incorporating companies, Preparing financials, Tax returns & services, Payroll services, Business consulting, Applying grants & incentives, to Cashflow management and funding, etc
Why Invest in Australia?
Australia is a stable and low-risk destination for investment, thanks to our resilient economy, dynamic industries and strong trade ties with the world.
Australia offer a business-friendly environment, a smart, enterprising workforce and a lifestyle that’s the envy of the world.
A land of opportunities.
Australia offers a wealth of investment opportunities in resources and energy; the circular economy; defence, advanced manufacturing and space; digital technologies; agribusiness and food; health; and infrastructure
Investing in Australia.
The Australian Government welcomes productive foreign direct investment. It has helped build Australia’s economy and contributes to economic growth, innovation, and prosperity.
To protect Australia’s interests whilst maximising investment flows, certain foreign acquisitions of Australian shares and assets are reviewed by the Australian Foreign Investment Review Board (FIRB).
Most foreign investment proposals are approved. Once approved, foreign investors are generally treated the same as domestic investors under Australia’s laws.
How to set up company in Australia?
Setting up a business in Australia.
There are a number of important considerations for investors when deciding on how to enter the Australian market or when establishing a business in Australia.
Investors will generally need to choose between establishing a new company, registering as a foreign company or acquiring an existing company.
If establishing a new business, a variety of business structures are available, each with their own regulatory and tax considerations. Businesses may also need to establish their identity through a trade mark, online and/or physical presence.
Deciding on a business or company structure.
Australia has a set of common structures that investors can use when establishing a business. The four main types are: sole trader; partnerships; trusts; and companies.
Investors need to consider carefully which structure best suits their business needs. The business structure will determine the licences necessary to operate, as well as tax and legal implications.
We are here to help you to meet your statutory obligation, providing consulting and advice.
Government support programs in Australia.
The Australian Government and state and territory governments provide support to assist investors set up and run a business in Australia.
The form of assistance available will vary by location, industry, and the nature of the business activity.
Did you know Australian state and territory government offer assistance to businesses?
The Australian and state and territory governments provide selected grants to businesses. Grants are available for setting up a business, expanding a business, or for specific activities such as research
Australian R&D tax incentive.
The Australian Government provides incentives for companies engaging in research and development (R&D) in Australia.
The R&D tax incentive provides eligible companies with a tax offset for expenditure on eligible R&D activities undertaken during the year.
R&D activities conducted overseas are eligible under certain circumstances.
The program is jointly administered by AusIndustry (an Australian Government agency) and the Australian Taxation Office (ATO).
Businesses must register R&D activities each year with AusIndustry prior to making a claim toward the tax offset with the ATO.
The research and development (R&D) tax incentive encourages companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities.
It has two core components:
- a refundable tax offset for certain eligible entities whose aggregated turnover is less than $20 million
- a non-refundable tax offset for all other eligible entities
Please note, only a registered tax agent like us can prepare and lodge your tax return and R&D tax application.
Australian taxes.
Most major business taxes, such as income tax, are collected by the Australian Government through the Australian Tax Office (ATO).
In some instances state-based taxes also apply, most commonly for payroll tax. Australia also holds a number of tax treaties with other nations to prevent double taxation of foreign entities operating in Australia.
Australian business taxes.
Taxes in Australia are administered and collected by the Australian Taxation Office (ATO), and in some cases state government revenue offices. Businesses can save money by paying the correct amount on time and taking advantage of any tax concessions that they are entitled to.
The key taxes affecting businesses are Company (income) Tax, Capital Gains Tax (CGT) and the Goods and Services Tax (GST). These taxes are all set by the Australian Government.
Businesses can elect to make tax payments monthly, quarterly or annually.
Company tax.
An Australian resident company is subject to company tax, at a rate set by the Australian Government.
A non-resident company is taxed on its Australian source income at the same rate as a resident company. Taxable income and the tax rate may vary under limited circumstances, such as industry or business structure.
Capital Gains Tax.
Capital Gains Tax (CGT) applies on any capital gain made through the disposal of assets. It is paid as part of income tax.
Foreign entities may be subject to CGT on assets acquired and used in carrying on a business in Australia. Businesses are required to keep records upon acquiring assets that may be subject to CGT in the future.
Small businesses may also be eligible for CGT concessions under certain circumstances.
Goods and Services Tax.
The Goods and Services Tax (GST) is a national, broad-based consumer tax on most goods and services sold or consumed in Australia.
Most businesses are required to register for GST with the Australian Taxation Office. Businesses which have paid for business supplies inclusive of GST are entitled to claim an equivalent input tax credit. Certain businesses may also be eligible for GST concessions.
Payroll Tax.
Payroll tax is a state tax on the wages you pay to employees.
It is calculated on the amount of wages paid per month and must be paid if total Australian wages exceed the exemption threshold in the relevant state or territory.
The payroll tax exemption threshold and the payroll tax rate varies between states and territories
How to set up and register a company in Australia?
There are 7 Steps to set up and register a company in Australia
Step 1 – Is a company right for you?
Step 2 – Choosing a company name
Step 3 – How will your company operate?
Step 4 – Understand your obligations as a company officeholder
Step 5 – Get consent from officeholders, members and occupiers
Step 6 – Registering your company
Step 7 – After your company is registered…
Step 1 – Is a company right for you?
You need to decide if a company suits your needs or if you should use a different business structure.
If you are not sure, we can offer advice to you.
A company is its own legal entity and lets you conduct business throughout Australia. You can also make use of other privileges, such as corporate tax rates or limited liability.
Registering a company is different to registering a business name.
Step 2 – Choosing a company name
There are a few things you should consider when choosing a company name.
A company’s name cannot be identical to an existing name
You can only use a name that is not identical to an existing company or business name.
Did you know you can use certain characters in a company’s name?
The following characters are accepted:
0-9 $ space : A-Z % . ; a-z * , ” ” @ & ? ‘ # = ! / \ _ – | () {}
Check existing trademarks or names
Before registering a name we need to check if a company with a similar trademark or name may already taken place.
A company’s name must show its legal status
A company must show the liability of its members and status in its name. For example:
if a company’s members’ liability is limited to the amount unpaid on their shares, the name must end with ‘Proprietary Limited’
if the members’ liability is unlimited, the company name must end with ‘Proprietary’.
Step 3 – How will your company operate?
Before registering, you will need to decide how your company will be governed. Your company can be governed by:
- replaceable rules
- its own constitution, or
- a combination of both.
- Replaceable rules
Replaceable rules
Replaceable rules are in the Corporations Act and are a basic set of rules for managing your company. If a company doesn’t want to have a constitution, they can use the replaceable rules instead.
Using replaceable rules means your company does not need a written constitution. This means you don’t have the expense of keeping it updated as the law changes.
Constitution
A company can also have a written constitution instead of using replaceable rules. Companies must keep a copy of their constitution with their company’s records.
Special rules for sole director/member proprietary companies
If a proprietary company has just one officeholder, they don’t need to follow replaceable rules or have a constitution.
If another director/member is appointed, then replaceable rules automatically apply to the company.
This can be changed to a constitution at a later date.
Share structure.
A proprietary company must have no more than 50 non-employee shareholders and be either:
- limited by shares, or
- be an unlimited company that has share capital.
A proprietary company must not conduct any activity that requires disclosure to investors. They may only offer shares to members of the company or employees/subsidiaries of the company.
Step 4 – Understand your obligations as an officeholder.
If you’re an officeholder of a company, you must follow the requirements in the Corporations Act. This includes meeting your legal obligations , which includes:
- ensuring company details are kept up to date
- maintaining company records and details on the register
- paying the appropriate lodgement fees and annual review fees as required.
Officeholders are ultimately responsible for a company’s adherence to the Corporations Act.
We are using Cloud based services to store and host your documents. Cloud storage works by storing data on remote servers, where it can be maintained, managed, backed up and accessed remotely.
Despite its accessibility, data stored via the cloud is extremely safe and secure.
Step 5 – Get consent from officeholders, members and occupiers.
You must get written consent from the people that will fill these roles:
- Director (must be over 18)
- Secretary (must be over 18)
- Member (every company must have at least one member).
At least one director and secretary of a proprietary company must ordinarily reside in Australia.
If you don’t have one, we can be your local resident director.
At least two directors of a public company must ordinarily reside in Australia.
Get the consent of the owner of your registered office address.
If your registered office does not belong to the company (e.g. it’s your accountant’s office), you must get their written permission to use the address.
If you don’t have a local Australian address, we can offer you one with –
- Dedicated receptionist to greet phone callers in your company name and transfer according to your instructions
- Secretaries on demand to run office errands eg. banking, printing
- Mail management forwarded anywhere
- Use the address for your company registration, business cards &/or mailing address
Step 6 – Registering your company.
We can help you to register your company.
This makes sure your business gets taxed at the right rate, avoids penalties and protects your brand and ideas.
We are here to help you to meet your statutory obligation, providing consulting and advice.
Our Chartered Service and promise to you as our client.
Step 7 – After your company is registered…
You need to set up your accounting and financial records with us. We are using a few smart cloud based software to do the heavy lifting stuffs like live bank feed, online invoicing, file online management, payroll services – Single Touch Payroll, etc.