| With a global reputation for "thinking outside the box" | | | | businesses are required to provide annual and audited |
| and being an OECD member, incorporating a business | | | | financial statements, and there is a public registry |
| in Australia can be beneficial both in terms of business | | | | that states all directors, shareholders and beneficial |
| efficiency and reputation. Being one of the easiest | | | | owners of Australian companies. However, whilst |
| places to do business worldwide, with a population of | | | | some businesses may perceive this to be a hassle, it |
| over 21 million, Australia is an attractive market in | | | | ensures reliability and security for investors as well as |
| which to undertake company incorporation for a | | | | entrepreneurs in business-to-business transactions. |
| variety of reasons. With significant levels of foreign | | | | The Australia Corporations Act of 2001 is the main |
| direct investment (FDI), it is interesting to look into | | | | source of legal regulation that governs businesses |
| the many incentives that attract entrepreneurs to | | | | and their operation within Australia. International |
| Australia. | | | | business is facilitated by various Free Trade |
| Location | | | | Agreements Australia has made with key economies |
| As Asia Pacific proves to be a key region for future | | | | like Singapore, New Zealand, the United States, |
| business, with two thirds of the global middle class | | | | Thailand and Chile. Furthermore, Australia has an |
| expected to come from Asia within the next few | | | | excellent reputation for the protection of intellectual |
| years, Australia is strategically located to take | | | | property rights, with laws that favour entrepreneurs |
| advantage of these prospects. Indeed, Asia has the | | | | and the development of their specific trademarks |
| most dynamic growth potential in the world, and | | | | and copyrights. |
| Australia can easily undertake business with dominant | | | | In terms of tax, Australia is ranked as being within |
| nations like China and India, which provide a major | | | | the 10 lowest tax nations of OECD members. The |
| source of income. Australia also benefits from various | | | | tax year runs from 1st July to 30th June the |
| advantages as a result of its time zone, which allows | | | | following year and Australian companies are taxable |
| Australian businesses to accommodate to the | | | | on all worldwide income, at a rate of 30%, except |
| working days of both European, American and Asian | | | | where the income is taxed overseas by another |
| companies. Indeed, the start of the Australian | | | | jurisdiction. Furthermore, Australia has signed a |
| working day comes around the end of the European | | | | number of double tax treaties that protect individuals |
| and US working day, and the start of the major | | | | and businesses from being taxed twice for the same |
| Asian markets working day comes before the end of | | | | income. Non-resident companies are taxed only on |
| the Australian working day. These natural time | | | | locally sourced income and on the profits gained from |
| differences give Australia an important business | | | | the disposal of assets. Although a 30% corporate tax |
| advantage over other countries. Similarly, Australia's | | | | rate may seem high to some entrepreneurs, it is |
| opposing seasons with other areas in the world give | | | | comparitively low in the context that Australia is a |
| it strategic benefits in agricultural and food industries. | | | | developed and leading jurisdiction as well as an OECD |
| Transport | | | | member. In this way, although being subject to |
| Australia provides an effective and advanced range | | | | corporate tax, the company is not perceived as a |
| of transportation options for businesses and people. | | | | tax haven and with strategic tax planning, can legally |
| Sea-freight is both reliable and convenient, as there | | | | minimize taxes. |
| are regular services between Australia and key | | | | All Australian companies with income exceeding |
| business centres across Asia and other international | | | | $50,000 are required to pay goods and services tax |
| markets. Indeed, over 10 shipping companies provide | | | | (GST), or else they cannot issue their annual tax |
| direct services to China, and as a result, freight | | | | invoices. The general taxation and legal system in |
| services provide competitive rates. Similarly, air freight | | | | Australia provides an effective infratructure to |
| offers many efficient options to businesses, and | | | | encourage business and ensure reliability and stability |
| minimizes transit time. | | | | in the economy. Australia is perceived as the equal |
| Domestically, the road, air and rail transport systems | | | | eighth least corrupt nation in the world, by |
| are cost-efficient and dependable. Australia's domestic | | | | Transparency International in their Corruption |
| air transport services have been rated within the | | | | Perception Index 2009, which is positive support for |
| best in the Asia-Pacific region, and general | | | | Australia incorporation. |
| transportation will be further advanced with the | | | | Current Business |
| government's investment into a trans-continental | | | | With its economy ranking as the 3rd freest |
| railway that is in the process of being built. | | | | worldwide, and the nation being the 9th easiest place |
| Overall, the transport infrastructure from Australia to | | | | to do business worldwide, it is evident why Australia |
| key nations around the world is an integral and | | | | remains a stable location for investment and a |
| effective system that allows Australian businesses to | | | | growing economy, despite the global recession. Within |
| prosper both nationally and internationally thanks to | | | | the Australian economy, finance and insurance is the |
| streamlined and flexible trade services. | | | | fourth largest sector. Australia boasts an extremely |
| Culture | | | | developed financial market, and the fastest growing |
| Australia's history implies the diversity of its people | | | | foreign exchange market in the Asia Pacific Region as |
| today, with Australian residents originating from over | | | | well as a major financial services centre with assets |
| 200 different countries worldwide. Consequently, | | | | valued at over A$4.3 trillion. Australia acts as a |
| about 25% of the Australian workers are bilingual, | | | | regional leader in investment management and has |
| speaking a language other than English. Furthermore, | | | | one of the most important capital markets in Asia. |
| with about 1.5million Australians speaking an Asian | | | | Supporting this, the World Economic Forum's |
| language at home (Australian Bureau of Statistics - | | | | Competitiveness Report judges Australia to have the |
| 2006), Australia's readiness to take full advantage of | | | | 4th soundest banking system worldwide with the 3rd |
| Asia's business opportunities is clear. Entrepreneurs | | | | most effective regulation of securities exchanges |
| benefit from having access to a multicultural and | | | | worldwide. |
| multilingual workforce, which allows better | | | | Company Incorporation |
| incorporation with major world markets beyond | | | | As previously stated, incorporating a company in |
| Australia's own domestic market. | | | | Australia requires one resident-director, a |
| Beyond having a multicultural and multilingual | | | | resident-secretary and a minimum of one shareholder. |
| workforce, Australia's education system is recognized | | | | Complete foreign ownership is legally authorized which |
| as being within the top ten in the world, and provides | | | | makes Australia an attractive location for offshore |
| for a highly skilled workforce in many fields such as | | | | business. Generally, entrepreneurs who incorporate a |
| engineering, finance and IT (IMD World | | | | company in Australia do this with the aid of a |
| Competitiveness Yearbook). Australians' commitment | | | | specialized professional services firm, which ensures |
| to education and innovation is reinforced with | | | | compliance with the law and knowledge of important |
| Australia holding the 3rd highest human development | | | | tax procedures, as well as the provision of a resident |
| index (HDI) in the world, an index developed by | | | | director and secretary in certain circumstances. |
| economist Mahbub ul Haq and based on three | | | | There are no capital requirements to incorporate a |
| elements of life expectancy, knowledge / education | | | | company in Australia, and with the competitive office |
| and standard of living. | | | | rental prices in the major Australian cities being lower |
| As a whole, the Australian workforce provides a | | | | than in other major business cities like London and |
| highly effective and competitive source of intelligence | | | | Hong Kong, entrepreneurs see Australia as a |
| for all business operations. Entrepreneurs who | | | | cost-efficient place to do business with access to |
| incorporate in Australia will have little to complain | | | | international markets. |
| about in terms of workforce; immigration policies | | | | Living |
| make it relatively easy to hire from overseas and | | | | Australia is globally known for having a low cost of |
| expatriate. | | | | living in comparison to other major business centres, |
| In Australia there is a general pro-business culture, | | | | which explains Mercer Human Resources ranking five |
| which is supported by many government initiatives | | | | of Australia's main cities in the top 50 worldwide for |
| and grants offered to businesses. For example, in the | | | | its Quality of Living Survey (2009). Entrepreneurs, |
| aim of developing export markets, there is a 50% | | | | who decide to live in Australia, as well as their |
| reimbursement of all overseas promotion expenses | | | | families, will benefit from the advanced infrastructure, |
| made by small and medium enterprises in Australia. | | | | transport and telecommunications. Furthermore, |
| There are also significant benefits given to companies | | | | Australia is recognized for its unique environment and |
| to encourage investment into their research and | | | | enjoyable climate, which is neither too hot nor too |
| development departments. | | | | cold. Housing, healthcare and education are of high |
| Policy and Taxes | | | | quality and affordable. |
| Given Australia's evident pro-business culture, the | | | | In conclusion, Australia provides an excellent, |
| government has strategically incorporated a | | | | cost-efficient business environment that is |
| business-friendly infrastructure of laws that | | | | pro-entrepreneurship. Considering Australia's position |
| encourage entrepreneurship and investment. | | | | as a developed nation with an extremely low |
| In terms of starting a business in Australia, despite | | | | corruption index and a respectable tax system, |
| the requirement to have a resident director and | | | | Australia is an ideal place for most entrepreneurs to |
| secretary, it is relatively fast and easy to incorporate | | | | incorporate their business. Entrepreneurs take |
| a company. Entrepreneurs can rest assured that they | | | | advantage of the many advanced facilities Australia |
| are within a stable economy that has important legal | | | | offers, whilst benefitting from a stable and respected |
| measures implemented to support this. As a result, | | | | jurisdiction for their business to prosper globally. |