(1) Ordinary Business Registration;
(2) Private Limited Company (PTY LTD);
(3) Public **** Limited Company (PUBLIC COMPANY).
Ordinary business registration is commonly known as unlimited company, its establishment process is very simple, apply for registration to 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 75 Australian dollars can be, such as you choose the name does not conflict with any existing business, the Business Registration Office for three weeks to the issue of 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 these companies are part of the system of large organizations, they are not suitable for 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%, and dividends paid after the tax drawback are tax-free and do not become an item of 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, you must first obtain a license. 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. After 1997, the Australian government further relaxed the foreign investment approval procedures and increased the number of foreign investment projects. After 1997, the Australian government further relaxed the foreign investment approval procedures, increased efforts to attract foreign investment, its goal is to make Australia gradually develop into a global financial center and "fine processing center" (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
-BANKING ACCOUNTS TRANSACTION TAX (FID AND DEBIT TAX)
-BANKING ACCOUNTS TRANSACTION TAX (FID AND DEBIT TAX)
THE BANKING ACCOUNT TAX (FID AND DEBIT TAX)
The tax is not applicable to all foreign investors. DEBIT TAX)
-PAYROLL TAX
Turnover tax is an additional tax that is extracted at the point of resale. 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 businesses have an income tax rate of 30 percent, with no exemptions. Partnerships and investment companies are not subject to income tax.
The 2005/06 personal tax rates are as follows:
0 - $6,000 0%
$6,001 - $21,600 17% $2,652 on $21,600
$21,601 - $63,000 30% $15,072 on $63,000
Personal tax rates are as follows.
$63,001 - $80,000 42% $80,000 $22,212
$80,000 + 47%
In addition to the above, there is a 1.5% surtax on Medicare, which is 1% if a solo business earns $50,000 or more and doesn't have a Medicare hospital. If a couple earns more than $100,000 and does not have a Medicare hospital, in this case the surtax for a family is 1%.
Low-income earners and people living on pensions can offset some of their taxes.
Owning 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 in the case of a home-based business. If your home is used as an office address, at least part of the rent, utilities and petrol costs can be considered as legitimate business purchases.
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 mall 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 is best to ask an accountant to check the information provided by the original business owner for you before buying to see if there is a profit 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 want 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 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, renovation and billboards, if your business requires a license plate which is a significant cost, business insurance, etc. If you don't have enough money, find a lending institution to help you. 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 the imported goods, and then make up for the payment of the GST when the goods are sold; and in the form of a natural person, you have to pay the GST as it is when declaring the imported goods. In Australia, in the form of natural persons engaged in import and export business is less.
If you register an Australian company to engage in import and export business, you need to go through the following procedures:
1. Register with the Australian Security & Investment Commission. The procedure for registering a business includes choosing a name for the company. The process of registering a business includes choosing a name, setting up articles of association, obtaining the consent of the company's contributors, and lodging a registration form. In the registration form, the business can declare that it will engage in importing and exporting. "Upon receipt of an application for business registration, the Securities and Investments Commission will issue a Certificate of Business Registration and an Australian Company Number, which is a 9-digit number unique to each business. 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 Code.
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 process of import business. The Winner 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, "a needle does not have two heads", and there are disadvantages to setting up a company: the Corporations Law requires all companies to keep a number of accounts and all current accounts, which is time-consuming and troublesome; and you have to pay the Australian Securities Commission (ASC) AUD 460 for setting up a company, and then pay the ASC annually for a year. Australian Securities Commission (ASC), in addition to an annual fee of A$152 for private companies and A$460 for public **** companies, as well as accounting fees; failure to comply with the Corporations Law can result in a fine of up to A$500 at any time; and if a serious mistake is made, such as being accused of cheating or fraudulent conduct as a director of a company, a fine of up to A$50,000 and imprisonment; the use of a company's funds to pay for its business is a very expensive and time-consuming process. If a serious mistake is made, such as being accused of cheating or fraud as a director of a company, you can be fined up to AUD$50,000 and sent to prison. Investing in the name of a company also has tax implications in terms of implementation, as all appreciation below the pass-through rate is included in the company's profit, which is tax-free to the company, but has to be distributed to shareholders in the event of a dividend payment or winding up, and since the company never pays any corporation tax, the exempted appreciation will have to be distributed to the shareholders as income and then income tax will have to be added to the amount of the dividends paid to the shareholders. 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 an easy, simple and obvious way; however, I found that many investors still make this mistake. This method is 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, as the dividend rebate has also dropped from 39% to 33%, and after receiving the dividend, they have to pay the difference between the marginal tax rate on their 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 a couple with high incomes, consider holding shares in a family company. Corporate tax is currently only 30 percent, a far cry from the top personal tax rate of 47 percent. 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 them 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 for GST.
Recently, there are some international students' friends who have bought some small businesses in partnership, such as internet cafes, chain cleaning business, etc. Such a model has small investment and high return, which is more choking than just working.