Setting up a business in Australia
There are a number of important considerations for investors when deciding on how to enter the Australian market or when establishing a business in Australia.
Investors will generally need to choose between establishing a new company, registering as a foreign company or acquiring an existing company.
If establishing a new business, a variety of business structures are available, each with their own regulatory and tax considerations. Businesses may also need to establish their identity through a trademark, online and/or physical presence.
Deciding on a business structure
Australia has a set of common structures that investors can use when establishing a business. The four main types are: sole trader; partnerships; trusts; and companies.
Investors need to consider carefully which structure best suits their business needs. The business structure will determine the licenses necessary to operate, as well as tax and legal implications.
Establishing an Australian company
Australian companies are incorporated businesses that are also distinct legal entities.
Companies in Australia must be registered with the Australian Securities and Investments Commission (ASIC).
Resident nominee director
A proprietary company in Australia must always have at least one director who ordinarily resides in Australia to comply with the Australian Corporations Act 2001 (C’th).
The resident nominee director is typically not engaged in operational day to day management of the company, which is performed by employees. The director is required to perform and is bound by director duties. The resident nominee director signs documents required to be lodged by the company with Australian regulatory authorities, including an annual solvency declaration.
We are highly experienced providing resident nominee director services. Appointing a resident nominee director to your company is a cost-effective solution to meet Australian legal requirements and ensures you still retain effective managerial control of your business. Our appointment fees are fixed and are a cost-effective solution.
Public officer
It is a legal requirement to appoint a public officer. A public officer is the company’s representative to the Australian Tax Office and is responsible for the company’s obligations under the Income Tax Assessment Act 1936 (C’th).
A public officer must be appointed within three months of the entity commencing. We are highly experienced providing public officer services.
Registering as a foreign company
Foreign entities may wish to carry on business in Australia as a foreign company.
As with Australian companies, foreign companies must be registered with ASIC. ASIC is also responsible for the ongoing regulation of foreign companies.
Acquiring an Australian company
An alternative to establishing a new or subsidiary company may be to acquire an existing Australian company.
Companies in Australia are regulated by the Australian Securities and Investment Commission (ASIC). ASIC maintains a register of regulatory and guidance documents relating to the takeover of companies.
Proposals by foreign investors to acquire Australian companies may require submission of a formal proposal. This is subject to approval by the Australian Foreign Investment Review Board (FIRB). FIRB examines proposals and advises the Australian Government on whether those proposals are suitable for approval under the Government’s policy.
Obtaining business premises in Australia
The purchase, lease and development of commercial property in Australia are facilitated by state and territory, and local governments. Approvals, assessments (including environmental assessment) and regulatory requirements will differ between jurisdictions.
Listing on the Australian Stock Exchange (‘ASX’)
Australia has a modern and active stock market, allowing access to the Asia-Pacific region and a time zone providing opportunities for trading on a round-the-clock basis.
The primary stock exchange in Australia is the ASX. Both Australian and international companies may apply for listing on the ASX.
To obtain and maintain an ASX listing, companies need to meet the prescribed requirements set out in the stock exchange listing rules. This includes company disclosure and reporting requirements.
Registering a trademark and domain name
Companies entering Australia will want to protect their rights and prevent others from using their name by registering a trademark and domain name.
