Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Australia are as mentioned below:

• Private Proprietary Company (Limited Liability Company)
• Australian Trading Trust
• Limited Liability Partnership
• Public Limited Company
• Branch
• Representative Office

Time Frame for Incorporation of Company in Australia varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for the process of Company formation in Australia to be completed is 2-5 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Australia:

• Registration of businesses in Australia is simplified and direct thus will only take a week.
• Investors can enjoy the benefits of the different trade agreements that the county has entered with other nations.
• The Australian Trade Commissions (Austrade) provides government incentives to investors which aides international companies in sourcing goods and services in the country, as well as in identifying potential Australia investment projects and strategic business partners.
• The uninterrupted growth of the country and its stand of being one of the most developed country provide a safe environment for investors to conduct business and trade.
• Australia support research and development projects and innovations thus providing a suitable location in the Asia Pacific region for research and development investors.

Tax Registration and Filing

Australian domestic corporations are taxed on their worldwide income, including income earned by their foreign branches. Below are some crucial points in relation to taxation rates in Australia:

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Australia has double tax treaty agreements with the following countries: Argentina, Austria, Belgium, Canada, Chile, China, Czech Republic, Denmark, Fiji, Finland, France, Germany, Greece, Hungary, India, Indonesia, Ireland, Italy, Japan, Kiribati, South Korea, Malaysia, Malta, Mexico, Netherlands, Norway, Papua New Guinea, Philippines, Poland, Romania, Russia, Slovak Republic, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Kingdom, U.S.A. and Vietnam.

Trademark registration

Trademark registration in Australia is done through the Australian Government Agency.  The application process includes a formal examination to determine any earlier trademarks of conflict, an examination of distinctiveness and generally ensure the trademark complies with the Trade Marks Act 1995. A certificate of registration shall remain in force for 10 years and can be renewed for another 10 years. It takes approximately 3-4 months from first filing to registration

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Australia for your business. For assistance or advise in the matter of the trademark registration in Australia or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Australia:

• Companies must keep minutes book that records of the following:
• proceedings and resolutions of company’s members or directors’ meetings
• resolutions passed by members or directors without a meeting
• if the company is a proprietary company with only 1 director – the making of declarations of the director
• The minutes must be signed by the chairman of the meeting.
• The minutes must be kept at the registered office or the principal place of business or another place in this jurisdiction approved by ASIC.
• Any director or secretary of the company must consent in writing for the appointment of such position as well as shareholders.

Accounting Services

Accounting practices in the Australia are set by International Financial Reporting Standards (IFRS).  The Australian Accounting Standards Board is responsible for developing, issuing and maintaining accounting standards for entities in the public and private sector in the country.

YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Australia Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

Large proprietary companies must prepare annual financial reports and a directors’ report, have the financial report audited and send both reports to shareholders. They must also lodge the annual financial reports with ASIC unless exempted.  Branch and representative offices are also required to have audited financials.

YourGlobalPro professionals provide you auditing services as required by your business in Australia.

Banking

Opening an account in a bank is quite easy in Australia. The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.

The major banks in Australia are National Australian Bank, Commonwealth Bank, Australia and New Zealand Banking Group and Westpac. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Australia.

Legal and Compliance

In Australia, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Australia legal and compliance requirement to be followed by incorporated entities:

• Limited liability companies can be formed with 1 shareholder and 1 director. Non-resident investors must appoint 1 director living in Australia.
• Trading trust companies must register with the Australia Companies Registrar and tax authority in order for the trust to function as an alternative of a trading company.
• Trust companies must appoint an Australian resident as a trustee or as a public officer in cases wherein all trustees are living outside the country.
• Limited liability partnerships must have general partners whose liabilities extend up to their personal assets and a limited partner whose liability only extend to their contribution. At least 1 general partner must be residing in Australia.
• Public limited companies are required to have at least 3 directors, 2 of which must be residents.
• Branches must appoint a local agent that accept services and notices on behalf of the foreign company. The branch must also have a registered address in Australia.
• Representative offices in Australia must not engage in activities that will amount to carrying business.

YourGlobalPro professionals can assist you with Australia Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Australia:

• A offer of employment may not be in writing however it is recommended to have a written offer.
• There is no limit of the length of the labor contract.
• Employers must pay a premium of 50% of hourly pay for overtime work
• Maximum working days is 6 days per week.
• Paid annual leave regardless of tenure is 20 days.
• Maternity leave is mandated by law for female employees. Minimum length of maternity is 126 days.
• The maximum length of probationary period is 6 months.
• Employers must provide a worker compensation insurance.
• Visitor visa has three categories allowing individuals to visit the country for tourism, family visit and business visitor activities.
• An individual wishing to enter Australia for employment reasons may apply for a short stay activity visa, long stay activity visa or temporary work visa.
• Individuals who need to enter Australia to perform short-term, highly specialized work that is not ongoing, participate in an event at the invitation of an Australian organization or assist in a national emergency can apply for a subclass 400 visa. The subclass 400 visa can be granted for a period of up to six months.
• Long stay visa or subclass 401 allows individuals to enter Australia to participate in a reciprocal staff exchange program, participate in a high-level sports competition, be a full-time religious worker or work full time in the household of certain foreign senior executives. The length of stay is 2 years.
• Temporary work visa or subclass 457 visa is required for individuals wanting to work in Australia. This visa is valid up to 4 years.

Country Statistics