Set-up Your Company in Australia
With a mixed market economy and low unemployment rate, Australia is one of the ideal locations to expand your business.
However, legal complexity, recent tax reform, and foreign trade barriers pose a challenge for company formation in Australia. NNRoad’s team of experts guides firms through the complex incorporation process, minimizing risks for smooth market entry.
Business entities that you can open in Australia
1) Proprietary Limited Company (Pty Ltd)
A Proprietary Limited Company (Pty Ltd) is the most common business structure in Australia. No more than 50 shareholders permitted, therefore it is limited by shares where members are liable only to the extent of any unpaid amounts on their shares.
There are both, large and small proprietary companies. A proprietary company is considered to be large if it satisfies at least two of the following criteria:
- More than USD$10 million annual revenues
- More than USD$5 million in assets
- On-boarded 50 or more employees
2) Sole Trader
A Sole trader business structure is a sole person trading as the individual legally responsible for all aspects of the business. This includes any debts and losses, which can’t be shared with others. This is the easiest and low-cost business structure when starting a business in Australia.
- The sole trader provides you full control of your assets and business decisions.
- It’s relatively easy to change your business structure if the business grows, or if you wish to break up your business.
3) Branch Office
A Branch Office is a registered legal entity that is treated as a prolongation of the foreign parent company. if you are running a medium to a large-sized business that has specialized operations in international locations, and intend to conduct a wide range of business activities in Australia, a Branch Office make it eligible.
- Branch offices will only be subject to taxes for the earnings derived from their business activities in Australia.
- Branch offices are considered a non-resident entity, which means that the foreign company’s head office will be held liable for any acts of commission or omission committed by the Australian branch office.
4) Representative Office
A Representative Office is a temporary setup that enables foreign companies to research the market or manage company affairs in Australia, however, It won’t allow conducting any profitable business activity.
- Representative offices are limited to carry out some administrative operation as singing contracts, raise invoices, or open letters of credit – either directly, or on behalf of their foreign parent companies.
- Companies are advised to open a representative office if their main objective is to research the Australian business environment before committing any form of investment or if they have considerable non-core activities to be managed in Australia.
PEO/Employer of Record in Australia
Hire employees in Australia while NNRoad handles all employer liabilities.
Employer of Record has become very popular for small to medium size businesses. When you decide to go into business by yourself, an Employer of Record is the best option for such business owners as it will reduce the burden of handling payroll, taxation, statutory benefits, and other related admin tasks.
In Australia, it's known as Contractor Management but it has the same meaning as Employer of Record (EOR) or PEO or Employee Leasing. Employer of Record /PEO services helps you to focus just on your business, staying competitive and profitable in the market.
What are the benefits of using an EOR in Australia?
- Hiring employees legally in Australia
- No Legal entity needed
- Quick entry market solution in Australia
- Dispatching employees in Australia
- Ensure employment, payroll, benefits, and legal compliance in Australia
- Engaging Contractors on behalf of your organization by acting as the employer of record
- Fully compliant engagement for PAYG and Pty Ltd Contractors
Our employment outsourcing solution in Australia includes:
- Local contract signature
- Monthly payroll calculation and delivery
- Individual Income Tax compliance with local Australian authorities
- Statutory benefits administration
- Medical insurance
- Visa application (foreign employees)
- Expenses claim management
- Work cover insurance, if required by the local laws.
Most of the companies in Australia are day by day outsourcing their operation work to lessen their burden as payroll is a time-consuming activity. NNRoad offers a compliant solution for payroll outsourcing by understanding your payroll need and providing cost-effective payroll solutions.
- Registering the necessary company and personnel information for payroll calculation in the payroll software and system.
- Calculation of gross salary, salary deductions (e.g. PAYG tax deduction, superannuation contribution, retirement saving, etc.), and net salary based on information provided by the Company including irregular payments such as incentive/bonus, commission, allowance, severance, retirement payment etc.
- Pro-rata calculation for people who join and final payment calculation for leavers.
- Providing a monthly payroll summary to the Company.
- Payroll Disbursement - Issuing payment invoice to the Company for payroll distribution to employees.
- The calculation, monthly reporting, remittance of taxes to local authorities.
- Year-End Adjustment and Annual Declaration.