Alex Nguyen Huy Anh
September 25, 2017
Australia is a country surrounded by the Indian and Pacific oceans. The country is famous for its friendliness, beautiful sceneries, and abundant natural resources. According to World Bank’s Doing Business Report 2017, Australia ranks as the 7th easiest place to start a business in. Incorporating an Australia company is a great way to gain access to 28 million consumers in Australia and New Zealand, and opens up opportunities in the Asia-Pacific region.
Incorporating a business in Australia is relatively simple and straightforward with minimum legal requirements.
International investors and directors are not required to travel to Australia if they have a filing agent on-site assisting with the paperwork. Registration typically takes 1-2 weeks if properly planned.
First, the company needs to conduct a name search with the Australian Business Register (ABR) to ensure that its preferred name is available.
Thereafter, a complete incorporation application will be submitted to the Australian Securities and Investments Commission (ASIC) to secure a certificate of incorporation and registration number (ACN).
Once the company is legally incorporated, another application needs to be submitted to the Australian Tax Office (ATO) to register for tax, and apply for an Australian Business Number (ABN) and a Tax Filing Number (TFN). If company’s turnover is over AU$ 75,000, it will be required to register for GST with the ATO as well.
A complete application package to incorporate a company in Australia usually consists of the following items:
- Notarized passport copies and proofs of address of all directors and shareholders;
- Signed shareholder application for shares and consent forms;
- Signed director consent forms;
- Signed office agreement (if applicable);
Taxation and reporting requirements
The statutory corporation tax rate in Australia is 30%. Small businesses with annual turnover of below AUD 10 million enjoy a reduced tax rate of 27.5%. Annual tax returns are filed by 15 January for small businesses and by 28th February for other companies.
A resident company in Australia is subject to taxation on its worldwide income. However, Australia has tax treaties with 45 countries, which can help to reduce the company tax liabilities on its global income.
GST in Australia stands at 10%, and companies required to do GST filing quarterly if their annual turnover is below AUD 20 million.
Every year, the ASIC will issue an Annual Company Statements to every Australian companies. The company needs to review the company statement, pay an annual review fee and submit Form 484 if there are discrepancies.