1. No capital is required for registration. In Australia, no capital is required to register a company, you can register directly;
2. Registration procedures are simple, short and efficient;
3. Tax authorities can provide free door-to-door consulting services, the Trade Department to provide a full range of free information;
4. Most of the costs of setting up an office in Australia, including salaries, advertising, office rent, airfare, etc. can be tax-deductible from income;
5. Most of the costs of setting up an office in Australia, including salaries, advertising costs, office rentals, airfare, etc., can be tax deducted from your income;
5. Apply for a business visa to Australia, which is convenient for business and tourism.
Second, the Australian company registration and management organization
Registration of Australian companies must be registered with the Australian Securities & Investment Commission (Australian Security & Investment Commission, referred to as ASIC) to apply. After successful application, the registered company will automatically obtain an Australian Company Number, referred to as ACN. After obtaining the ACN, you have to continue to apply to the Australian Taxation Office for an Australian Business Number, referred to as ABN, as well as apply for a GST declaration before completing all the procedures of company registration. The company's registration process is completed only after applying for a GST declaration.
Three, the registration of Australian company number ACN required information
1. to be registered in Australia company name three (English), of which two for the alternative;
2. the company's registered address in Australia, contact telephone, fax and e-mail, if the address belongs to the rental, you need to provide the name of the renter, to confirm that the renter agreed to the address as the company's registered address;
2. Registered address;
3. Personal details of the registered person in charge of the company, Director (date of birth, place of birth, current address, contact details including telephone number and email address);
4. Nature of the company's proposed business in Australia, direction of the business;
5. Personal details of the directors or shareholders of the company in Australia (if it is not a one-person company).
6. the personal details of the secretary of the Australian company (year, month, place of birth, address, contact details including telephone number and email address);
7. the details of the allocation of shares to the directors or shareholders of the Australian company, with the default number of shares being 100, and the share price being based on the number of shares in the company. The number of shares is 100 and the share price is set at AUD 1 per share.
Four, registered Australian business number ABN, GST declaration required materials
1. company's Australian company number CAN;
2. company responsible for the director and secretary secretary's personal tax file number;
3. company registered responsible for the director and secretary secretary;
3. Director and Secretary's personal information (date of birth, place of birth, current address, contact information including telephone number and email address);
4. nature of the company's proposed business in Australia, direction of business;
5. the company's registered office address in Australia, telephone number, fax number and email address;
6. the choice of filing the GST return The way of GST filing: monthly, quarterly or annual.
How long does it take to register Australian Company Number ACN and Australian Business Number ABN
1. Registration of Australian Company Number CAN - 28 working days (normal) or 60 minutes (expedited with extra expediting fee)
2. Australian Business Number ABN - 30 working days
Australian Securities and Investment Commission (ASIC) ASIC contact: http://www.asic.gov.au/
Australian Business Register contact: http://www.abr.gov.au/
Australian Taxation Office contact: http ://www.ato.gov.au/
Fifth, how to register a company to establish your business
To establish and operate any business in Australia, it is necessary to register with the Business Register (AUSTRALIAN SECURITIES COMMISSION). With a few exceptions, business organizations in Australia can be divided into three main categories.
(1) Ordinary Business Registration;
(2) Private Limited Company (PTY LTD);
(3) Public Company Limited (PUBLIC COMPANY).
Ordinary business registration is commonly known as unlimited company, its establishment process is very simple, the applicant should first choose a business name (Business Name), and then go to the Business Registration Office to get and fill out a very simple form, and pay the registration fee of AUD 75 can be, if you choose the name does not conflict with any existing business, the Business Registration Office for three weeks to issue a business registration license. If your chosen name is already used by someone else, you will have to choose another name. This type of business registration can be used by sole proprietors or majority shareholders and is suitable for small businesses.
Private limited companies must be incorporated in accordance with provincial company laws. The formation of a private limited company is very complex and requires the services of an accountant, a lawyer or an organization that specializes in incorporation of companies on behalf of clients, with government fees and agent fees ranging from A$1,500 to more than A$2,000. A private limited company must have at least two shareholders and directors. The most important feature of a private limited company is the right of "limited liability", which gives the company its own independent identity after incorporation and has no connection with the personal assets of the shareholders under normal circumstances. Private limited companies are not subject to audit in Australia and are suitable for small and medium sized organizations. All Australian companies are formed under this system. A general business registration can also be a branch of a private limited company.
Public limited companies are larger organizations that are more complex to form than private limited companies and have a specified minimum number of shareholders. The government regulates this type of company very strictly. Public **** limited companies are divided into two categories: listed and unlisted companies. Because this type of company is part of the system of large organizations, it is not suitable for use in general business.
In terms of taxation, organizations established under the General Business Registration Act are private organizations and will be taxed according to the personal income tax rate of the investing shareholders.
Limited companies have their own system and are taxed separately from the personal income of shareholders. The current profits tax rate for companies is 33%. Dividends paid out after the tax drawback are tax-free and do not form part of the shareholders' personal income for tax assessment purposes.
When organizing a company, newcomers should be aware of whether the shareholders are Australian residents. If around 25% of the shareholders are overseas residents, the company may be treated as an overseas company and will have to go through a separate foreign business registration process with the Treasury. In addition to business registration, many businesses are required to obtain a business license. Shop-type businesses are required to obtain a license from the local municipal government, while import and export businesses are subject to a number of import quotas. In addition, many other businesses, such as professional offices, plumbing, electrical work, construction work, etc., are regulated by individual trade unions or other organizations. In order to start a business, a license must be obtained. The difficulty of applying for a license and the conditions required vary from industry to industry and cannot be handled uniformly. In terms of foreign investment policy, Australia encourages the entry of foreign investment, but has maintained a foreign investment review system. The system implements "Notification" and "Prior Approval" for some sensitive industries and foreign investment projects with huge amount of investment. 97 years later, the Australian government further relaxed the approval procedures for foreign investment and increased efforts to attract foreign investment, with the goal of developing Australia into a global financial center and a "Manufacturer of Excellence" (MEP). The goal is to develop Australia into a global financial center and a "Manufacturer of Excellence".)
Besides income tax, there are a number of tax items attached to business, the most common of which are as follows:
-SALES PAX
-IMPORT TAX (IPMORT DUTIES ETC)
-STAMP DUTY
-BANK ACCOUNT TRANSACTION TAX (FID and DEBIT TAX)
-BANK ACCOUNT TAX (FID and DEBIT TAX)
BANK ACCOUNT TAX (FID and DEBIT TAX)
BANK ACCOUNT TAX (FID) DEBIT TAX)
- PAYROLL TAX
Turnover tax is an additional tax extracted when goods change hands. The point of extraction is usually at the point of resale to the end user. The rate of sales tax is high and can be more than 20%. Import tax varies from shipment to shipment and can be as high as 100 percent or more. Other taxes are small in number and have little impact on business.
Australian companies have an income tax rate of 30 percent, with no exemptions. Partnerships and investment companies are not subject to income tax. In addition to the above, there is a 1.5% Medicare tax credit, which is partially offset for low income earners and people living on superannuation.
Having a legitimate business in Australia not only gives you a legitimate income, but also allows you to make many of your necessary expenses into legitimate refundable and tax deductible purchases, especially for a home-based business, where at least part of the rent, utilities and petrol costs can be considered as legitimate business purchases if your home is used as an office address.
There are two ways to do business in Australia: buying a business or setting up your own.
Buying a business means buying the business owner's store, goods, stock, lease, and customer base. This is one of the easiest ways for newcomers to invest in a business, but buying a business costs at least ten times the monthly profit. The first thing to look at when buying a business is its location and user base, and whether or not there is any competition. It's a good idea to locate your business in a high-traffic shopping center, or in an area that is not easily accessible but has relatively affluent residents (locals prefer to shop close to their home for odds and ends, even if they are 50% more expensive, except for once a week when they go shopping in the big malls). It's a good idea to ask an accountant to check the information provided by the original business owner for you before you buy to see if the profit is suitable. Ask an attorney to reference ideas for you and go through the purchase process so that you don't leave a big puddle of fallout after purchasing the business.
Building a business on your own is far less expensive than buying one. If you are not an importer/exporter or a big business owner in Australia, and have some modest income that you wish to legalize, you must register an Australian business - not as a limited company. To register a business you need to be at least 18 years old and living in Australia. The steps to starting your own business are generally as follows: examine the location and user base of the business you want to start, and whether there is any competition. Do your best not to start a duplicate business unless it is in a particularly densely populated area. Reduced competition is exhausting and unproductive. Check with the local government to see if they will allow you to build your business in your planned location. Calculate the cost of building the business, investment in equipment, investment in goods, at least three months' deposit on the house, decoration and billboards, if your business requires a license plate this is a significant cost, business insurance, etc. If you do not have enough money, find a lending institution. If you don't have enough money, do you find a lending institution. In Australia, business loans are provided by funds and banks. You can also hire an accountant to do the math for you if you need it. Registering your business and business tax number (ABN), applying for a license (if required), registering your company (if required), registering your trade mark (if required).
In terms of import and export business, there are also many differences between engaging in import and export business in the form of a natural person and in the form of a legal person, mainly in that: in the form of a legal person, who will be holding a company code, you can apply for a deferred payment of GST when declaring imported goods, and then pay the GST after the goods are sold; and in the form of a natural person, you have to pay the GST as it is when declaring imported goods. In Australia, there are fewer cases of import and export business in the form of natural persons.
If you register an Australian company to engage in import and export business, you need to go through the following procedures:
1. Register your business with the Australian Security & Investment Commission. The process of registering a business includes choosing a name, establishing articles of association, obtaining the consent of the company's contributors, and submitting a registration form. In the registration form, the company may declare that it will engage in the business of importing and exporting. The Securities and Investment Commission (SIC) will issue a Certificate of Incorporation and an Australian Company Number (ACN), which is a 9-digit number unique to each business, upon receipt of an application for business registration. When registering a company, the registrant does not need to submit proof of qualifications and the registered capital can be as little as one Australian dollar.
2. Register with the Australian Taxation Office and obtain an Australian Business Number, which is a two-digit number in front of the Company Number.
3, the enterprise can be registered in the Customs and Excise Department, to obtain the owner code (Owner Code). With this code, companies can apply for a delay in the payment of Goods and Services Tax (GST) in the course of import business. The Owner Code is not mandatory.
4. Australian Customs has no restrictions or qualification requirements for companies wishing to engage in import and export business. As the saying goes, "there is no such thing as a needle with two heads", there are also disadvantages to setting up a company: the Corporations Law stipulates that all companies have to keep a number of accounts and all current accounts after they are set up, which is quite time-consuming and troublesome; setting up a company requires you to pay AUD$460 to the Australian Securities Commission (Australian Securities Commission), and in addition, you have to pay an annual fee, and a private company has to pay an annual fee of AUD$150 for each year of operation. There is an annual fee of A$152 for a private company and A$460 for a public **** company, as well as accounting fees; if you do not comply with the Companies Act, you may be fined at any time, usually A$500; if you make a serious mistake, such as being accused of cheating or fraud as a director of a company, you can be fined up to A$50,000 and sent to prison; investing in the name of the company also has tax implications on its execution, with all the appreciation in value under the pass-through rate included in the company's profit. All the value added below the pass-through rate is included in the company's profit, which is tax free for the company, but it will be distributed to the shareholders in the event of dividend payment or winding up, but since the company has never paid any corporation tax, the tax free value added will be distributed to the shareholders as income and then income tax will be added. On the other hand, if the company incurs a loss, the loss cannot be distributed to the shareholders to minimize the private tax, but can only be accumulated in the company and offset against the future income of the company.
Of course, there are many ways to avoid tax. For example:
1. If your spouse is unemployed or has a low income, consider buying shares in his/her name. This is a very easy, simple and obvious way; however, I found that many investors still make this mistake. This method will be even more useful after this year, as the corporate tax rate has now dropped from 39% to 30%; this is detrimental to high income investors who hold FRANKED DIVIDEND shares, as the dividend rebate has also dropped from 39% to 33%, and after receiving the dividend, they will have to pay the difference between the marginal tax rate on personal income and the corporate tax rate. For example, if a spouse with no income holds shares, she receives A$4,000 a year in dividends and sells a portion of her shares, making a capital profit of A$15,000. Calculating this, the taxpayer would only have to pay A$962 in capital tax, or just 6.4% of the profit. If the shares had been held by her high-earning spouse, the tax could have been almost half the profit.
2. For two couples with high incomes, consider holding shares in a family company. Corporate tax is currently only 30%, a far cry from the top rate of 47% for individuals. You can save a lot of tax by keeping the profits (after paying 30% corporate tax) in the company and distributing them as dividends when one of the couples has a low income. Many people think that a trust is better than a corporation, but for high-income couples, a corporation is more practical, simpler, and easier to operate. However, for high-income couples, a company is more practical and simpler to operate. Moreover, a trust must distribute profits to individuals each year, so there is little control over the timing of the distribution of profits. Investment companies can also be used for borrowing, and all interest paid by the company is tax-deductible.
In addition, those running limited companies are generally required to submit quarterly BAS (Business Activity Statements) and pay GST VAT. Please make regular and punctual arrangements with your accountant to pay GST.