How to start a business in Australia
How to start a business in Australia
The Commonwealth of Australia: Do you know how to start a business in Australia (Melbourne, Sydney) as foreigner? Staring a new business or having a presence of your existing business here in Australia is as easy as challenging. This is a land with world class business environment again maintains strict laws and regulations to control the business world. Another challenge is the market size comparing to its sheer geographical size. If you plan a big business then you need to consider markets other than Australians to survive and to thrive.
Before setting up a new company in Korea you need to study and analyse some social, cultural and economic factors the following to decide on your move.
As far as the question of business is concerned, the Australians are very straightforward, so you don’t have to give time to build and develop relationship before doing a business with them. Australians don’t find it hard to say no. That being so their answers will be cleared, straightforward and a deciding one. Australians are born to consider or accept new suggestions and ideas to new ideas. Modesty gets appreciations from Australians; hence no aggression or overacting is preferred. The working environment in Australian work places is collaborative and supportive. The high brasses of the business use to consult with the rank and file before deciding on a matter and decision making processes are slower than standard. You should be trustworthy, confident and honorable to match with environment . Its better not try to rush a decision, because patience is very much appreciated by your part on the other side of the table.
Usual Business hours are 9:00 am to 5:00 pm, Monday to Friday. The ideal time is to visit Australia during the March to November period for business.
In Australia, there exists no such thing as an official language. The national language is de facto English and the general Australian is the standard dialect.
Location of your Business
In terms of costs of living, the Commonwealth of Australia is not at all an easy going part of the world. Accommodating the rental cost is really a big challenge for the new comers, specially for SMEs. While studying the feasibility of your business in the Australian soil you need to think of the high costs of rentals.
Expatistan’s Cost of living index for Oceania & Australia
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During 2016 the demands for office spaces increased to nearly 518,000 square meters. The per square meter rent in Sydney is around 900 dollars, in Perth around 1000 dollars, in Melbourne around 700 dollars, in Brisbane it is around 850 dollars. But among the big top cities, Sydney remains costlier in terms of hike in rental cost. As per JLL Global Office Index 2016 Q4, Sydney is on top of the world cities in rental growth posting a 22.5% rise in rents.
Business Factors: Taxes and Levies
Paying taxes was a primary concern as reported by the Australian Chamber of Commerce and Industry. The corporate houses expressed their grievances over the superannuation levy, which set to rise progressively from 9% of payroll to 12% by 2019-20. It ranked 30th out of 35 OECD countries in terms of the tax-to-GDP ratio compared with the 2015 figures. In the year 2014, the country had a tax-to-GDP ratio of 27.8%, compared with the OECD average of 34.3% in 2015 and 34.2% in 2014. Australia ranked 25th out of 190 nations in the Paying Taxes Index of the World Bank.
Currently in Australia, all companies are subject to pay taxes on their taxable incomes at a federal tax rate of 30%. However, there exists a soft income tax rate for the small businesses having annual turn-over less than AUD 10 million. The rate is 27.5% and shall remain valid until the income year 2023/24.
Dealing with the Construction Permits it takes 112 working days in 11 processes
Getting electrical connection it takes 75 days
The labour costs in Australia have gone up to 99.80 Index Points in the Q2 of 2017 from 99.30 Index Points in the Q1 of 2017. The Compulsory super annotation is payments to Australian workers that are set to rise progressively from 9% of payroll to 12% by 2019-20, would also increase labour costs in Australia and have to absorb by the businesses which may ultimately make them uncompetitive owing to price hike. The minimum wages was $17.70 per hour and weekly $672.70 until June this year. A 3.3% increase was effected from July to have hourly minimum wages $18.29 and weekly $694.90.
For staffing Recruitment agencies are the choice in Australia to commence your search for employees. You need to keep in touch with Department of Productivity and Labour Relations and Department of Occupational Health, Safety and Welfare to get correct and updated information on working hours, holidays, leave, superannuation, and safety.
The options of business forms before you
►Acquiring of an existing holding
►Formation of Company
►Branch or Representative Office [RTO]
Registrations & Licensing
The form of Limited Liability Company either wholly or partially owned is the best vehicle for the overseas investors to run a business. The registration process is simple with a highly efficient one stop online service and this is how to start a business in Australia (Melbourne, Sydney) as foreign investors.
Registration of a Limited Liability Company [LLC]
The ASIC [Australian Securities and Investment Commission http://asic.gov.au] is the company registration authority in Australia. Following reserving your company name, it takes 3 working days in 3 steps to have the company registered. There are processes with fees and without any fees.
- Reserving a company name
- Applying for registration with ASIC Form 201
- Registering for Australian Business Number [ABN] with the Australian Taxation Office [ATO]
Signing up for Worker Compensation Insurance at an insurance company
It cost AUD479 to have your company registered if you do it in person. It would cost you as much as AUD550 [including registration fee] in case you buy service of a consulting firm for the job.
Once a company is registered, the office bearer of the company must ensure that;
- The company’s name to be on display as long as the company conducts business.
- All the company documents must bear the ACN or ABN provided. A company can use their ABN number instead of the ACN on the documents since the ABN includes the ACN as the last 9 digits of the 11 digit number.
- The document of the company must be kept up to date
The data from the ATO [Australian Taxation Office] reveals that the cost of doing business has hiked steadily over the past few years in the Australia. The Businesses in the Australia had to spend AUD47.44 billion on rent alone in the year 2014 as the ATO maintained.
You can visit following web address in Australia to know all sorts of information and formalities concerning an opening of a new business. You have already idea how to start a business in Australia as foreigner from our information.
More information of registering new Pty ltd company in Australia.
Our services: (1) foreign company registration (2) income tax (3) accounting (4) audit (5) business advisory
Find us: Melbourne, Sydney (Australia)