Why Moving Your Business to Australia is a Wise Decision
Australia is a country that has been attracting a great deal of international attention in the past several years. One of the primary reasons for this is the wealth of employment opportunities that are available to both immigrants and locals alike. Employment opportunities aside, there is an enormous potential for business owners to have a great deal of success by relocating their business operations to Australia. That said, it is important for business owners, depending on what industry they are in, to make an accurate assessment as to whether Australia is the proper fit for the best possible results for their company. Consider the following ten reasons when trying to ascertain whether moving your business to Australia is the ideal choice to take your business venture to the next level:
10 Reasons You Should Move Your Business to Australia
1 | Efficiency
All in all, Australia is a very efficient country in comparison to other markets to relocate one’s business too. It merely does not have the intense paperwork that is required to establish business and to make those businesses be successful. One such example is that one can establish a company in Australia online and in less than a week. In terms of getting up and running in Australia, the process is quite simplified for those that would like to establish themselves there. Should there be an issue with the company registration or a confusion with the applicant, Australia also has the proper offices setup to maintain a rapid response time to resolve those issues. Additionally, there are very efficient borrower-lender markplaces to help you secure financing even as a relatively new business. The overall efficiency within Australia makes it an ideal place to relocate a business.
2| Strong Economy
Australia really does have a very impressive economy. The economy within Australia is quite stable and well known around the globe. Many companies have decided to relocate their operations to Australia due to the stability and wealth of opportunities that are there. This is also true for employment opportunities given that Australia has a strong and well-educated workforce. That said, there are certain industries that the Australian government recruits and provides visas actively for due to a shortage of skilled workers. In either case, what is important to understand is that Australia has a very strong economy that continues to flourish due to the strong foreign direct investment and government efficiency.
3 | Visa Options
The Australian government offers a wide variety of visa options to individuals that would like to move their businesses to Australia. This is something that the Australian government actively encourages due to the economic benefits that it provides to the country. For the majority of visa options to relocate a business to Australia, it is possible to begin the application process from abroad, which makes the overall process quite smooth given the stress of moving an entire corporate entity to a new jurisdiction. In terms of relocating an existing business to Australia or starting an entirely new business in Australia, it is best to utilize the Business Innovation and Investment Visa.
4 | Taxation Benefits
Australia does provide taxation benefits to employers that move their business ventures there. The general rule of thumb is that foreigners that have residence in Australia are taxed on the income that they make within Australia. This same concept is true for a company. If a company originates in Australia, then it is an Australian company. If a company is a foreign company that has relocated to Australia, then it is still considered a business in residence and taxed. Even though the taxation levels are alarming, it is important to understand that the Australian government has established many tax treaties with countries around the globe. These tax treaties are also relevant for businesses that have relocated to Australia and could serve as a protectionist measure for double taxation. Businesses that manipulate the taxation treaties to their favor will have a great economic return by relocating to Australia without the risk of double taxation.
5 | English as an Official Language of Commerce
Another major benefit of moving your business to Australia is related to the national language there. English is one of the most widely used languages in the globe. For this reason, having a presence in Australia with local English-speaking employees is a great way to increase the versatility of your company. This is particularly true if the home office of your company is located in a country that does not speak English primarily.
6 | The “one person” Company Option
Australia does have some unique provisions when it comes to how many individuals are required to setup a company. In some jurisdictions, there are more than one director required; however, in Australia it is possible for there to be an individual that is the sole owner of a company, yet still have the same protections of the corporate veil when it comes to creditors trying to access personal assets. Should you be the sole owner of your entity in another jurisdiction and you are trying to relocate your operations elsewhere, it is absolutely possible that you will be able to have a great deal of protection by moving your business to Australia.
7 | Bookkeeping
An important aspect of moving your business to Australia is figuring out how to comply with the bookkeeping requirements that are imposed by the Australian government. The essence behind these regulations is that the government is trying to create a healthy corporate economy that thrives on transparency. The body that controls these regulations is the Australian Standard Business Reporting. The records that you keep must either be on paper or electronic. Be sure to take the time to consider which option is the absolute best for you. Complying with this regulation is something that will be essential in order for your business to avoid legal implications and excessive fines from the Australian government.
8 | Ease of Finding Workers
Australia does have an advantage for business owners in that the immigration policy is more open to both permanent residents and temporary expats working for domestic employers. It is important that the employer verify the immigration status of the prospective employee to ensure that they are complying with all government regulations to decrease potential liability. One of the issues that an Australian business owner is going to have to face is regarding whether they are hiring an independent contractor or a full-time employee. The reason that this distinction is vital is because the full-time employee will have a higher rate that has to be paid towards their superannuation, which is the Australian government’s retirement program.
9 | Venture Capital Opportunities
For a company that is in its startup years, moving to Australia early on with one to two years of commercial history is not a bad move. Australia has a wealth of venture capital opportunities that are not necessarily closed to foreign entities that started outside of Australia and then subsequently relocated there. This is particularly the case if your entity is ripe for growth. You will not only potentially qualify for investment visas; however, you will also be able to jump into the next echelon of financing, which will provide the opportunity for your business to prosper.
10 | Government Grants for Specified Industries
The Australian government is truly a unique species when it comes to their receptivity to include both foreign persons and entities. This is why there are so many potential government grants that are available for companies to take advantage of in order to get to the next level. The way that a company can be successful with this regardless of whether it has foreign roots or foreign ownership is to investigate grants that are related to their particular industry of specification. This is often the case when the industry is something that the Australian government is desperately trying to develop. Many times, these government grants go unused, which is why it is a wise move to investigate them and ascertain whether your company can potentially benefit from them if they are beginning to relocate to Australia.
Final Remarks on the Subject
Australia has a very unique niche in the global economy. Historically, the country was quite isolated with the exception of its close neighbor New Zealand. This, combined with the former British connection forced Australia to grow a very self-sufficient and productive economy. Due to the evolution of English being one of the most important languages in global commerce, Australia’s national language became its strength in terms of attracting foreign direct investment. Subsequently, the government’s open-minded nature to foreign direct investment and immigration put Australia in a position to build fabulous infrastructure and a powerful economy. For foreign individuals that are attempting to relocate their business entities there, it is absolutely a strategic move that is worth considering. The efficiency of the overall process and the long term fiscal benefits that are possible make Australia a great place to move the satellite of a business or the entire operation there for the potential long-term profitability that is available to business owners both domestic and foreign.