There is vast potential in the Australian market for Chinese companies looking to set up a company in Australia. Starting a business in Australia is a multistep procedure whose aim is to abide by the laws and understand the intricacies of the Australian environment.
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Why Choose Australia?
This makes any foreign business that plans to enter the Chinese market to consider Australia one of their ideal locations. It has a favorable policy for business, good politics and Chinese economic connection. Secondly, setting up business in Australia gives you access to its free trade agreements with other APAC countries which include China through the trans-pacific partnership agreement.
Types of Companies to Register
It is vital to know the various types of companies that can be registered before setting up a company in Australia. The most common types are:
- Proprietary Limited Company (Pty Ltd): This is the most common form of business entity in Australia. They are companies with limited shareholder’s liability. Moreover, they need at least one shareholder and a director.
- Public Company (Ltd): A public company can sell shares to people while a Pty Ltd company enjoys much lesser regulations.
- Branch Office: This refers to foreign companies already existing in Australia. Operates through a parent company and lacks its own legal personality.
Learn more about the business structure here Understanding the Meaning of Pty Ltd for Businesses in Australia
The Registration Process
Setting up a company in australia, you will need to follow these steps:
- Choose a business name: First and foremost, it is important to come up with an original and appropriate business name that will make it stand out. ASICs website can help do this.
- Select a company structure: Choose the category of a business entity most suitable for your case.
- Appoint a director and shareholder: There should be a minimum of one director responsible for management as well as at least one shareholder having ownership shares.
- Register your company: Once you have filled in all documents required, simply register your entity with ASIC.
- Obtain necessary licenses and permits: In Australia, it depends on your business activities, and you will require more licenses and permits to be issued by the government.
To learn more, read Checklist for Company Registration in Australia
Legal Requirements
However, setting up a company in Australia is not just about paying some fees but it meets other legal requirements as well. These include:
- Registered Office: All official correspondences should be made in the registered office you will have had in Australia.
- Company Constitution: The rules that guide a company are contained in the company constitution.
- Taxation: As a registered company in Australia, you will be bound by Australian income tax laws. You might want to get an ABN and register under GST. Read more Understanding Australian Tax Brackets.
Conclusion
The process of setting up a company in Australia is not difficult if you have the right information and consultancy. Australia is an excellent site for establishment of a China business because it has immense advantages that will make access into the Chinese market easy. With this guide, you have everything you need to open a business in Australia and start trading with China. Contact FastLane Group for a free consultation session.
