Setting up a business in Australia as a foreigner is something that can be done easily as long as you know the process, and you know what you have to do.
At Nobel Thomas, our team of Melbourne accountants has helped numerous foreign business owners across various industries set up shop.
Here are some important steps to consider, depending on the type of business that you are starting.
Every foreign national who wishes to start a business in Australia should have one of these two types of visas:
• Business Innovation and Investment visa
• Business Talent Visa
More information about these visas can be found on the Australian Business Website.
Once you have a visa, the next steps are a logical sequence that includes:
• Registering your company’s name in Australia
• Applying for permits and licenses
To register your company we recommend utilizing the services of an experienced accountant for this purpose like our team of Melbourne accountants. But before you register the company you will need to obtain different business licenses and permits. Depending on the type of business, there are many different licenses that you’ll have to get. To find out what permits and licenses your business will need it’s best to speak with a lawyer who specialises in your businesses’ niche.
Once you’ve decided to go ahead, the next step is to decide on a business structure. Do you want to set up a totally new business, or take over an existing one? Or would you prefer registering as a foreign business?
Choosing a business structure for yourself means deciding whether you want to be a sole proprietor, company, partnership or a trust. Your business structure will decide things like your level of control, your taxable income, and your personal liability.. As a sole proprietor, you alone will be responsible for taking care of all the legal aspects of your business, as well as its daily running.
If you choose a company business structure, it will have a separate legal existence. To diversify risk you can decide to be a company or partnership and bring in more people to share the responsibility, or become a trust that has its own property and income for the advantage of a third-party. Whatever you decide the business structure to be, make sure you decide before registering your business as its structure will decide what paperwork needs to be filed. We, at Nobel Thomas, can help determine the best business structure and help you through the entire process.
Being an online business, a franchise or an independent contractor is another major decision that has to be made. Every business type has its own set of legal and regulatory requirements so this needs to be decided at the earliest based on what suits your industry the most.
You have to have an ABN if you want to start your own business in Australia. An ABN is a unique 11 digit number that identifies your business. The ABN is needed to identify your business to other businesses for ordering and sending invoices, lodging taxes and claiming BAS refunds. An Australian Business Number and your business name can be registered independently, but it is easier to apply for both together.
You need to have a business plan ready mainly because people are going to ask you how you plan to succeed. When you go looking for funding the investors will want to have a look at your business plan in order to judge the viability of investing in your business. For a foreigner starting a business in Australia, you may have to work extra hard in building a concrete business plan to overcome potential biases.
You can’t start a business with just good intentions. You need to have strong financial backing which will get you through the initial hurdles. With a sound investor, you can swim through the initial growth stage.
You can find grants, funding and support programs from the Australian government that has introduced them to help your business grow. If they don’t meet your requirements you can look for banks and private investors who would be willing to give you a chance.
Failing to pay the right taxes at the right time can get you into legal trouble. To avoid that you have to know all the taxes that you will be bound by law to pay. A good tax accountant whose area of expertise is business law or company law will be the right person to guide you. Registering for the right taxes and paying them on time will save you from potential legal problems that nobody wants to deal with.
In order to legally run your business in Australia, you should ensure the following documents are in place:
• Certificate of Incorporation
• Operating Agreement
• Business Plan
• Insurance Policy
• Non Disclosure agreement
• Business License
• Contract Documents
All businesses need basic licenses and permits. Here are the most common ones, that maybe mandatory for your business:
• The advertising/sign permit
• A health department permit
• The fire department permit
Navigating through all these requirements along with the critical considerations to take into account can be daunting, especially on a foreign land. Our team of expert Melbourne accountants at Nobel Thomas can help you set up your business and have it up and running in no time. Get in touch with us today.
Highly recommended. Mert is personable and trustworthy, experienced with entrepreneurs.
I’ve decided to make Nobel Thomas my regular accountant as I am now setting up a trust for my business. I would definitely recommend them to anyone looking for a quality inner city accountant.
The team at Nobel Thomas offer consistent and timely advice for both my personal and business accounting needs. Could not recommend them more highly!
I have been with Mert and the team at Nobel Thomas for a few years now and have never been anything less than impressed with their prompt and high quality service and professionalism.