Australia has become a very attractive locale to start a business for foreigners. One of the primary reasons for this is that Australia has English their official language. Australia also has a very stable economy based on its historic ties to the United Kingdom. In addition to Australia’s rich history, Australia also has a very open immigration policy, which is precisely why there are so many distinct ethic groups that reside in Australia today. This open mindedness also applies to how foreigners can potentially have the ability to start their own business entities within Australia and/or obtain a work visa easily. When deciding whether relocating to Australia to start your own company is the ideal fit for you, it is wise that you take into account the relevant discussion below:
What is Required to Move Your Business to Australia
- The Proper Visa: It is important that you figure out what visa is ideal for your particular situation. Australia has many different business visas available for individuals to consider. Your success with your application is going to depend on whether you find the right visa for your particular circumstances. In Australia, the two most prominent business visas are the Business Innovation & Investment Visa and the Business Talent Visa. For the Business Innovation & Investment Visa, you are either going to need to be sponsored by a state government body or you are going to have sufficient assets to afford the minimum threshold for the investor visa. The Business Innovation & Investment Visa is reserved for those who already have a substantial amount of capital or backing to make an existing business or start up turn into a large entity that will be a major asset to Australia. In terms of the Business Talent Visa, the threshold is to own part of a company that is already overseas and have at least AUD $ 1.5 million or have access to substantial venture capital funding that is over AUD $ 1 million.
- Proper Registration with Government Entities: Within Australia, it is quite simple to register your company electronically. The website that you will need to access is has a series of steps that you should consider. The most important step is to search whether the name of your company is available. The reason for this is that the name registration is the first step that will occur when you are attempting to register a legal entity within Australia. Upon deciding the name of your company and applying for that name, you will have to decide what kind of entity that you are looking to incorporate. In doing so, you will figure out how to structure the partners and other voting members of your entity. At this stage, you will be able to register your company either with a private service provider that handles all of the administrative duties for you or directly with the ASIC to obtain your ACN/ABN number. Given the ease of the system in Australia it is absolutely possible to register a company on your own without hiring an expensive firm to do so.
Benefits of a Small Australian Business vs. Other Countries
- Efficiency: Australia truly does have one of the most rapid corporate registrations in the world. The fact that the registration is available via internet is a major benefit that individuals should consider when deciding where to register their entity. In terms of time frame, it is possible to register a legal entity in Australia within ten minutes and have an almost instant decision if your application does not have any major errors. This sort of efficiency is what makes Australia such an appealing choice for many foreigners.
- Transparency: In terms of transparency, few countries can compete with Australia. There is not a great deal of red tape and corruption to navigate when trying to incorporate in Australia, which becomes more valuable to foreigners every day. This transparency will continue to be something that will be quite valuable as Australia opens its commercial doors to more and more foreign entities.
- Foreign Rights: There are not many places in the world that are so open to foreigners having rights or even a majority ownership share. Australia sees the value of foreign commerce increasing the profits in their country. This is why foreign companies that have the potential to create many jobs and generate impressive revenues are welcomed in Australia with open arms. This, combined with the high level of English in Australia makes many options for foreign entities to not only do well there, but to also benefit Australian citizens in the process.
Hurdles to Be Aware of Related to Initial Financials in Australia
- Potential Issues with Banking: Australia is one of the simpler places to establish a bank account as foreign citizens. The reason for this is that foreign citizens can even begin the process of both their visas and bank account applications from their home country, which makes the initial transition to residing in Australia quite simplified in comparison to other jurisdictions. This is something that prospective foreign business owners should absolutely take into account because they will have a far more efficient way to setup the initial payment structure of their company.
- Moving Capital to Australia: Depending on where your home country is, there may be complications with moving money to Australia. Some methods are more cost effective than others. This is why it is essential to properly research which entities have the best currency exchange rates for getting your capital available to you before you land on Australian soil. For business owners, since you will be moving large sums of capital, be sure to not sustain a financial loss on over paying banks for bad currency conversion rates combined with excessive money wire charges.
- Obtaining Requisite Funding: Depending on the nature of the company that you are starting, you are going to have to think of viable ways to obtain sufficient working capital. In Australia, there are ways to obtain financing. That said, these methods require a very established financial history. In order to be eligible for these opportunities, it is going to take a very established relationship. However, venture capital is something that absolutely is possible when trying to obtain the proper funding. In Australia, be open to venture capital as it could be the threshold you need to be eligible for the Business Innovation & Investment Visa.
Solutions to Financial Setbacks in Australia
In terms of getting the proper capital to Australia, it is highly recommended to use a money transfer company to effectively transfer your assets from your home country to Australia. What this option will provide you is the opportunity to save a substantial amount of capital on mere currency conversions that will be scheduled on the precise date to get you the best possible rate. Traditionally, banking institutions have exchange rates that can cause you to lose thousands of dollars on transfers that are larger amounts of capital. Using a money transfer company is a wise strategy because not only will you save on the very exchange rate itself, but you will also have the opportunity to save on the actual fees that are charged to you for the service of the transaction. The combination of these savings is something that will be a great investment to your company that you are trying to establish within Australia.
Final Remarks on the Subject
Australia is a country that perpetually attracts both immigration and foreign direct investment. As a whole, the Australian government is elated at the prospect of foreigners attempting to start their own business entities within Australia. The key is to find the proper business visa for your particular circumstances. If you are able to achieve this, what you will find is that you will have a very smooth process of incorporating your company and establishing your bank account both from within and outside of Australia. If you are already fluent in English, then you will have the opportunity to dive right into the business society that exists within Australia. Thus, be sure that you absolutely consider taking your company to Australia. What you will realize is that there is a great deal of opportunity in Australia for you to explore that will prove to be a very lucrative investment for you in the long term.