BUSINESS IN AUSTRALIA
Australia's business environment and business culture combines many progressive elements of entrepreneurship from around the world. For example, British conservatism and etiquette, Scandinavian equality and emphasis on innovation, and American pragmatism and drive for success.
Business immigration to Australia in 2024 is a great opportunity for foreigners to move to a developed dynamic country, where the government is actively increasing trade relations with different regions of the world, the economy shows stable growth, and the standard of living is one of the highest on the planet.
Australia has a predominantly friendly population, wonderful nature, comfortable climate, ideal infrastructure and all the necessary conditions for a prosperous life. Australian universities offer quality education (very expensive), and unemployment does not exceed 5%.
Moving to Australia to open a business or make investments will allow you to obtain permanent residence, and later on to obtain an Australian passport. Effective government programs are aimed not only at professional immigration to Australia, but also at attracting foreign businessmen.
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How to start a business in Australia
Despite the positive aspects and benefits of doing business in Australia, not all entrepreneurs are able to succeed and make a profit in this country. In addition to the huge competition and the need for substantial capital investment, in most cases, foreigners face additional requirements that are very difficult to fulfill. One of them is the preliminary processing of a business visa.
To simplify the mechanism of business immigration to Australia, the country has a special system for checking compliance with the requirements of local migration laws and determining the economic interest in attracting foreign professionals, including businessmen, called – Skill Select. Start preparing your move to Australia to start a business by visiting this resource. You will not be able to obtain a visa without it.
In 2024, the Australian legislation provides for several business immigration programs, each of which has certain conditions for obtaining a visa and a system of points. Basically, they take into account the experience of entrepreneurship, the degree of proficiency in English, age and the amount of investment.
The most affordable option is the Innovation and Investment Program, which allows you to apply for a business visa category 188. The visa consists of 5 sub-categories and each requires an invitation from the Australian regional or federal government.
For each sub-category of the business visa to Australia (188) there are specific requirements for foreigners. Let's highlight the main ones.
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Confirmation of interest of a particular state or the state as a whole in a foreign entrepreneur (Skill Select). The total sum of points is not less than 65.
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Certificate of no criminal record from countries where the candidate has lived for more than one year in the last 10 years.
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Medical certificate showing the absence of serious illnesses.
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A minimum investment amount of 500 thousand Australian dollars. In some cases, at least 5 or 15 million is required.
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Preferred age not more than 55 years old (at the discretion of the authorities).
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No indebtedness to the Australian government.
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Business experience. Typically at least 3-5 years.
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Other conditions depending on the visa sub-category.
For more official information on immigration programs and business visas to Australia, including the 188 visa category, please visit the Australian government portal – homeaffairs.gov.au.
Business registrations in Australia
In the annual report of the agency Doing Business out of 190 countries of the world on the ease of doing business Australia takes the 14th place. A little inferior to the neighboring country – New Zealand, which is on the deserved first place, but still formal procedures for registering a company and starting a business on the Australian territory is quite accessible. Directly on the procedure of creating a business Australia is on the 7th position, on the enforcement of contracts on the 5th, and on obtaining building permits on the 9th.
Stages of company registration in Australia
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Choosing a unique name and legal form of ownership.
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Filing a company registration application (Form 201) with the Securities and Investments Commission (ASIC). At least one of the directors must reside in Australia. The procedure takes one day and costs 463 Australian dollars. The new company is then assigned an (ACN) number and a certificate of incorporation is issued.
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Registration with the tax office. In case of annual turnover over 75 thousand Australian dollars, the company is necessarily issued a special code of 11 digits (ABN) for payment of GST (analog of VAT). The procedure is done within a day online.
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Registration of salaried employees with the social insurance authorities.
Forms of ownership for business in Australia
Competent choice of business structure (form of ownership) for the company is considered one of the most important stages for the launch and subsequent successful implementation of business activities in Australia. It is worth paying special attention to this issue. A foreigner will certainly need the help of specialized consultants, accountants and lawyers. Let us highlight the most popular forms of ownership for business in Australia.
Individual entrepreneur. The simplest and least expensive way to run a small business in Australia. The owner is fully responsible for the company's activities, including losses and other liabilities, with all his property. Minimal accounting and tax reporting requirements.
Company (LLC). Fully independent legal entity in which the owners (shareholders) have limited liability for the company's obligations within the framework of contributions to the authorized capital. More complicated registration procedure, strict requirements for reporting and compliance with tax legislation.
Partnership. A company is created by several (up to 20) individuals or legal entities to conduct joint business activities. The business structure is not considered a full-fledged legal entity, so the partners are liable for the company's obligations with all their property. Signing a partnership agreement is considered a formal, not a mandatory procedure.
In the event of business expansion in Australia or other circumstances arising in the course of doing business, the form of ownership is allowed to change.
Taxes in Australia
Tax optimization is one of the most important components of successful business in any country, especially in countries like Australia. Tax rates in developed countries are often very significant and administrative controls are very strict. The financial year in Australia, unlike many countries, ends on June 30. For more information on Australian specifics of business taxation, please visit the official website of the tax department – ato.gov.au.
Tax rates in Australia
Corporate income tax – 30% basic rate and 25% if annual turnover is less than $50 million.
VAT (GST) – 10% on most goods and services.
Income tax – progressive scale depending on annual income:
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From 0 to A$18,200 – 0
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From A$18,201 to A$45,000 – 19 cents on every A$1 over A$ 18,200
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From A$45,001 to A$120,000 – A$5,092. Plus 32.5 cents on every A$1 of an amount over A$45,000
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From A$120,001 to A$180,000 – A$29,467. Plus 37 cents on every A$1 of an amount over A$120,000
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From A$180,001 and over – A$51,667. Plus 45 cents on each A$1 of the amount over A$180,000
What kind of business to start in Australia
Australia's dynamic economy offers foreign entrepreneurs a wide range of areas to invest in and start a new business. From agriculture to information technology. The main task is to research the market, choose the most suitable region and have an innovative component. Very important are – experience, financial resource and minimal competition. Don't stop only on big cities like Sydney and Melbourne.
In many respects, it is on these factors depends on the answer to the question of what business to open in Australia and whether it is worth the risk. After all, the vast majority of novice businessmen fail in the first 1-2 years after the start, including in such prosperous countries. Make your decision as balanced as possible, look for a scarce and promising niche. Actual areas for small business in Australia are IT services, pet care, healthy food, tourism and sports.
