Australia business set up takes several forms, although the limited liability company is the preferred corporate entity for the majority of foreign investors and local Australian entrepreneurs. The following is an overview of the different business entities available in Australia:

In accordance with the Australian Corporations Act 2001, each company must fulfill the following Australia business setup requirements:

i) appoint at least one local resident director - thereafter, an unlimited number of local and international directors may be appointed. However, only individual directors are allowed - corporate directors are not allowed;

ii) appoint at least one shareholder. Both local and international, corporate and individual shareholders are allowed;

iii) appoint a local, resident company secretary and registered office. Only individual company secretaries are allowed, although a company director can also act as the secretary;

iv) have a minimum share capital of A$1;

v) obtain an Australian Company Number (ACN). Issued by ASIC, the ACN is a unique 9-digit number which must be included on all correspondence and invoices issued by the company;

vi) submit audited financial statements  and annual corporate tax return to the  Australian Taxation Office (ATO) and ASIC.  

Some investors set up an Australia Branch Office as part of their plans. Also established via ASIC, an Australian Branch Office retains the legal identity of its foreign parent. The Australian branch adopts the same name as its parent, and is required to file audited financial statements annually with ASIC. The Branch Office is required to maintain a registered office in Australia. An Australian Branch Office is taxed as a limited liability company in Australia. The government fee to register a branch of a foreign company is A$400.

Although not a popular form of Australia business setup for international entrepreneurs, a Sole Trader is nevertheless the most simple, flexible and cost-effective entity in Australia. A Sole Trader has a single owner, who can be either an individual or a company of any nationality. The entity needs not be registered at ASIC, and has no legal status. The sole trader is personally liable for all business debts. The sole trader is not required to be Australia resident. The sole trader is liable to personal income tax, but not corporation tax. This entity is attractive because of the low set up costs (A$70) and minimal accounting and tax reporting obligations.

For more information on Australia business set up, email email@healyconsultants.com or call us in Sydney at +61 280 147 568

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