Entity Formation & Setup in Australia

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)

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

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

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

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.

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