Setting up your Business to Flourish in Australia
Australia offers an attractive proposition as a centre for international business and investment. It is a key player in the Asia-Pacific region, boasting a competitive economy, stable government, highly skilled and multi-lingual workforce and numerous free trade agreements.
Part of running a global business is the challenge of maintaining sustainable operations and growth in an unknown business environment, which comes with its own set of unique rules and compliance obligations. Setting your business up to succeed in Australia requires success across a number of key areas, listed below.
ESTABLISHING YOUR BUSINESS IN AUSTRALIA
There are a variety of business structures used in Australia. Each type of structure offers different advantages and limitations depending on the size and scale of the intended business operations.
The most commonly used structures include:
- Sole traders or practitioners
There are various other structures through which business may be carried on, including certain widely held trusts and limited liability partnerships, however such structures are complex and specialist advice is recommended to ensure the objectives of the transition.
The appropriate structure for your business will depend on your individual strategic goals as well as the current business environment in Australia.
NAVIGATING THE TAX SYSTEM
Australians are subject to various taxes, levies, duties and excises primarily via the Federal Government and State or Territory Governments. Federal Government taxes encompasses GST, FBT and various excise duties, while State and Territory Governments impose stamp duty, payroll tax and land tax.
Tax rates vary for each state, so it is important to understand the specific rules for each jurisdiction in which you operate.
Australia’s tax system is complex and varies greatly for different types of entities and structures conducting business in Australia. Specialist advice is needed to guide overseas businesses to ensure compliance and maximise profitability.
It’s important to remember that launching a successful business in a foreign country is about much more than the initial set-up obligations.
Having an experienced team of trusted advisors join your front line is invaluable in helping your business thrive in the Australian market. Without a local expert to guide you, it is easy to get lost in the compliance and commercial obstacles required to launch your business in Australia.
ESV’s Doing Business in Australia Guide provides an overview of the essential considerations to help you set up your business to flourish in Australia.
For further information, please contact us or speak to your ESV engagement partner on 02 9283 1666.