Australia is a land full of fulfilled dreams. The continent is bursting at the seams with job and employment opportunities or land to set up your own business. Accommodation, catering, transportation, IT, education, agriculture, production, manufacturing etc. — Australia is home to various working sectors. Its endless array of opportunities makes it the perfect place to grow your company. If you plan to start your business journey here, this guide has everything you need to know to register a company in Australia.
Why Australia?
Registering for a business in Australia is one of the smartest decisions you can make. Running a company in Australia comes with various benefits, such as:
Reduce Legal Liability
According to Australia’s business structure, unlike working as a sole trader, registering a company allows you to reduce legal liability by associating with a legal organisation that is not affiliated with you. A sole trader is responsible for all business decisions and aspects, but you do not have to worry about being solely accountable by registering your company.
Income Tax
Australia is an ideal place to start a new business. Depending on the revenue generated, companies eligible for a base rate entity must pay 25% tax. For other companies, the payable tax is 30%. Additionally, with the Double Taxation Avoidance Agreement (DTAA), trading with certain countries would exempt companies from double taxation.
Diverse Business Opportunities
Being the largest country in Oceania, Australia offers an opportunity-filled environment for various business dealings. Even though construction, manufacturing, science, and minings are some of Australia’s top and rapidly rising sectors, other sectors like education, agriculture, arts, and transportation are also bustling with opportunities.
Factors to Consider
There are certain factors to keep in mind when registering a company in Australia, such as:
The Type of Company
Different companies have different registration procedures depending on the business, its needs and requirements, and the revenue it can potentially generate. Conduct thorough research on your business proposal’s tax rates and liabilities before registering your company.
Naming Your Company
When naming your company during registration, run a name availability check to ensure it is neither similar or identical to an existing business. Since some authorities and institutions are nationally and globally relevant, you cannot have certain words (like any Royal Family-related name) in your company without official approval from a government minister. In addition to prohibited words, check if the name you have in mind is trademarked or not. Trademarked names or characters can land you in hot water.
Save the Spot
Sometimes, registering a company might take some time, even if you have a unique name. In such cases, you should hold your spot by registering your company’s name first. Reserving a position for your name ensures no other company can use it when registering their name. However, make sure the place where you register your company allows you to re-reserve the name if you exceed the waiting period.
Proper Documents
Ensure you have the proper documents and papers that prove your identification, residential card, and business certificate and legally allow you to run a company in Australia. Having current fines, past misdemeanour cases, or trademark lawsuits might affect your chances of setting up your business.
Wrapping Up
Australia is an exciting place to start a company. To register a company in Australia, ensure you have the legal documents that allow you to own a business. In addition, make sure the name you choose does not have any prohibited words in it and is not currently used.
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