First, advantages of companies registered in Australia
There is no need to register funds. Registered companies in Australia, do not need to provide funds, can be registered directly;
The registration procedure is simple, the time is short, and the efficiency is high;
Tax authorities can be free door-to-door advisory services, Trade Bureau to provide all-round free information;
A large portion of the costs of setting up an office in Australia include salaries, advertising costs, office rentals, airline tickets, etc., which can be deducted from the income;
Apply for Australian business visa to facilitate business travel.
II. Registration and Administration of Australian companies
Registered Australian companies must apply to the Australian Securities and Investment Commission (Australian Security & Investment Commission, ASIC). Upon successful application, the registered company will automatically obtain an Australian company number, Australian Company Number, for short, ACN. After obtaining the ACN, you will continue to apply to the Australian Inland Revenue Authority for the Australian Business number Australian Business Number, or ABN, and apply for the Excise GST return before completing all the procedures for the registration of the company.
III. Information required to register Australian company number ACN
There are three names of Australian companies to be registered, two of which are optional;
The company's registered address in Australia, contact telephone number, fax and e-mail address. If the address is leased, the name of the tenant is required to confirm that the tenant agrees to use the address as the registered address of the company;
(B) the personal data of Director, the person in charge of the registration of the company (date of birth, place of birth, current address, contact information including telephone number and e-mail address);
The nature and direction of the company's business in Australia;
Personal data of directors or shareholders of an Australian company (if not a one-person company): year of birth, place of birth, current address, contact number and e-mail address;
(B) personal data of Secretary, Secretary of the Australian company (date of birth, place of birth, current address, contact information including telephone number and e-mail);
The shares of directors or shareholders of an Australian company are distributed in detail, with a default number of 100 shares, and the share price is set at 1 Australian dollar per share.
IV. Materials required to register Australian business number ABN, excise tax GST declaration
Company's Australian company number ACN;
Personal tax number Tax File Number; for head of the company Director and secretary Secretary
(B) personal information on Director and Secretary, secretary of the company's registrar (year of birth, place of birth, current address, contact number and e-mail address);
The nature and direction of the company's business in Australia;
The company's registered address in Australia, contact phone number, fax and e-mail address;
Choose the way to declare GST: monthly, quarterly or annual.
V. time required to register Australian company number ACN and Australian business number ABN
Registered Australian company number ACN:28 working day (ordinary) or 60 minutes (urgent, additional charge);
Australian Business number ABN:30 Business Day
Australian Securities and Investment Commission ASIC contact: http://www.asic.gov.au/ Australian Business Registry Australian Business Register contact: http://www.abr.gov.au/ Australian Inland Revenue Service contact : http://www.ato.gov.au
6. How to register a company and set up its own business
The establishment and operation of any business in Australia is required to be registered with the Business Registration Office (AUSTRALIAN SECURITIES COMMISSION). With the exception of a few, Australian businesses can be divided into three categories.
General business registration;
Pte Ltd. (PTY LTD);
Public Limited (PUBLIC COMPANY).
The process of setting up an ordinary business registration company, commonly known as Infinite Company, is very simple. Applicants first choose a firm name, (Business Name), and then go to the Business Registration Office to collect and fill out a very simple form, and pay a registration fee of $75. If the name you choose does not conflict with any existing firm, the Business Registry can issue a business registration licence within three weeks. If the selected firm has been taken by another person, a different name shall be chosen. This business registration can be sole proprietorship, but also majority shareholders joint stock, suitable for small business use.
A private limited company is subject to a combination of provincial companies. It is set up in a complex manner, requiring accountants, lawyers or agencies to set up companies on behalf of clients. Government fees and agency fees range from A $1500 to A $2000 or more. A private limited company is required to have more than two shareholders and directors, the most distinctive feature of which is the right of "limited debt". The company has its own independent status after its establishment and is not normally associated with the personal assets of the shareholders. Private Limited does not require audit in Australia and is suitable for small and medium-sized organizations. Australian companies are established in this system. Ordinary business registration can also be a branch of a private limited company.
A public limited company is a larger organization with a more complex formation process than a private limited company and a designated minimum number of shareholders. These companies are strictly regulated by the government, and public limited companies are divided into two categories: listed companies and non-listed companies. Because this kind of company belongs to the large organization system, is not suitable for the general merchant. In the area of taxation, institutions established under the ordinary business registration law are private, and profit-making tax will be levied at the individual income rate of the investment shareholders. Limited company has its own independent system, in tax also separate from shareholder individual income. The company's profit-for-profit tax rate is currently 33%, tax-free and will not be an assessment of shareholders' personal income. New immigrants should pay attention to whether their shareholders are Australian residents when organizing their companies. If about 25% of shareholders are overseas residents, the company may be treated as an overseas company, subject to separate procedures for foreign-funded business with the Ministry of Finance. In addition to business registration, many industries also have to apply for business licences. Shop-type businesses require licences from local municipal governments, while import and export businesses have many import limits. In addition, many other industries, such as professional offices, hydropower projects, construction projects, etc., have individual trade unions or other organizations. If you want to start business, you must first obtain a licence. The procedures for applying for a licence vary from trade to trade and cannot be handled uniformly. In the foreign capital policy, Australia encourages foreign investment to enter, but has maintained the foreign capital examination system. The system implements the "Project Declaration" (Notification) and "pre-approval" (Prior Approval). For some sensitive industries and foreign-funded projects with huge amounts of investment. After 1997, the Australian Government further relaxed the procedures for approval of foreign investment. Increased efforts to attract foreign investment, the goal of which is to gradually develop Australia into a global financial centre and "boutique machining center" (Manufacturer of Excellence).
In addition to income tax, there are more tax items attached to business, the most common of which are the following:
- Sales tax (SALES PAX)
- Import duty (IPMORT DUTIES ETC)
- Stamp duty (STAMP DUTY)
- Tax on bank accounts (FID and DEBIT TAX)
- Employee tax (PAYROLL TAX)
Sales tax is a surcharge for goods to be transferred. Tax points are usually used when reselling end-users. The operating tax rate is higher, up to 20% or more. Import duties vary according to goods, up to more than 100%. The number of other taxes is small and has little impact on business. The income tax rate for Australian companies is 30%, not tax-free. Partnerships and investment firms are not required to pay income tax. In addition to the above, there are 1.5% of health insurance, low-income people and people living on pensions can be partially offset by taxes. Having a legal business in Australia allows you to have a legitimate income, and can turn many of your necessary expenses into legal rebates and tax cuts, especially in the home-style business, if your home is both an office address. Then rent electricity, gas and other at least part of the business can be used as a legitimate consumption.
There are two ways to do business in Australia: one is to buy a business, the other is to set up a business of your own.
Buying a business means buying both the original store, the goods, the purchase channels, the lease, and the user community. This is one of the simplest ways to invest in business for new immigrants, but it takes at least ten times the monthly profit to buy a business. The purchase business first looks at its geographical location and user base, and whether there is competition. It is a good idea to build businesses in crowded shopping malls, or in areas where transportation is not very convenient but residents are relatively wealthy. (in addition to shopping in big shopping malls once a week, Australians prefer to buy scattered items in the vicinity of the rest of the time. Even if the price is 50% higher, it doesn't matter. Before buying, it is best to ask the accountant to account for the information provided by the original owner to see if there is a profit. Please consult your counsel and go through the purchase formalities so as not to leave a big sequelae after the purchase. Setting up a business by yourself is much less expensive than buying a business. In Australia you must register your business in Australia if you are not in import, export or big business and have a small amount of revenue and wish to legalize it-without having to register as a limited company. Registered business requires applicants over 18 years of age to live in Australia. Start your own business with the following steps: check the location and user base of the business you want to do, and see if there is competition. Try not to repeat business unless in very densely populated areas. The competition for reduced prices is cumbersome and ineffective. Consult the local government if you are allowed to build the business you want to build at the planned location. Account for the cost of the business built, investment in equipment, investment in goods, at least three months of house pressure, decoration and billboards, if your business requires a license card, it is a large amount of expense, business insurance, etc. If the funds are not enough, whether to find a loan institution. In Australia funds, banks and so on provide business loans. If you need a job, you can also ask an accountant to calculate for you. Registered business and business tax number (ABN), applications for licences (if necessary), registered companies (if necessary), registration of property and trade marks (if necessary). In the import and export business, there are also many differences in the form of natural persons and in the form of legal persons, mainly in that those in the form of legal persons will hold the code of the company. In the customs declaration of imported goods can apply for delay in payment of consumption tax (GST), to wait for the sale of the goods before making up the consumption tax; In the form of natural persons, import goods must be declared in full consumption tax. In Australia, there are fewer cases of import and export operations in the form of natural persons.
If a registered Australian company is engaged in import and export business, the following procedures are required:
Registered with the Australian Securities and Investment Commission, (Australian Security & Investment Commission). The procedures for a registered enterprise include selecting the name of the company, establishing the articles of association, obtaining the consent of the financier of the company, and submitting the registration form. In the registration form, the enterprise may declare that it will engage in import and export business. Upon receipt of an application for registration of an enterprise, the Securities and Investments Commission will issue a certificate of registration and a company code, (Australian Company Number), which is a 9-digit code for each enterprise. When a registered company is registered, the registrant does not need to submit a certificate of qualification, and the registered capital may be A $1.
Tax registration with Australia Inland Revenue Department and business code (Australian Business Number), this number is double digits before "Company Code".
Enterprises can register at customs and obtain master code (Owner Code). With this code, an enterprise may apply for a late payment of the goods and Services tax (GST). In the course of its import business The owner code is not required to be applied for.
The Australian Customs has no conditions, restrictions and qualification requirements for enterprises that wish to engage in import and export business. As the so-called "needle does not have two benefits", the establishment of a company also has shortcomings: the company law (Corporations Law) requires all companies to maintain the number of accounts and all current accounts after the establishment of the company, which is quite time-consuming; The company is charged an annual fee of A $460 to Australian Securities Commissioner (Australian Securities Commission), a private company to A $152, and a public company to A $460, as well as accounting fees; If you fail to comply with the company law, you may be punished at any time, usually A $500; if you make a serious mistake, if you are accused of fraud or fraud as a director of the company, you will be liable to a fine of up to A $50000 and imprisonment; Investment in the name of a company also has a tax problem in terms of enforcement. All the value added below the open account rate is included in the profits of the company. In the case of a company, the value added is tax-free, but the company has to be distributed to shareholders when it comes to bonus shares or winding-up. But since the company has never paid any corporate tax, the tax-free value-added is to be paid to shareholders, plus income tax. On the contrary, if a company suffers from a loss, the loss may not be assigned to shareholders to reduce the private tax, which can only be accumulated in the company and offset by the future income of the company.
Of course, there are many ways to avoid taxes reasonably. For example:
If your spouse has no job or low income, consider buying stocks in his or her name. This is an easy, simple, obvious approach; but I find that there are many investors who make this mistake. This is even more useful after this year, as corporate tax rates are now down from 39% to 30%; This is bad for high-income investors who hold FRANKED DIVIDEND, as dividend rebates have also fallen from 39 percent to 33 percent, and the difference between the marginal tax rate on personal income and the company tax will have to be paid after the dividend is received. For example, if a non-earning spouse holds shares, she receives A $4000 a year in dividends and sells some of her shares, with a capital profit of A $15000. Calculate this taxpayer to pay a capital tax of A $962, or just 6.4% profit. If the shares were held by her high-paying spouse, the taxes could be almost half the profits.
For both couples with high incomes, consider holding shares in a family company. Corporate taxes currently stand at only 30%, a big difference from the personal top tax rate of 47%. Leaving profits (30% corporate tax paid) in the company and distributing them with dividends when one of the revenues is low can save a lot of tax. Many people think trust (TRUST) will be better than the company, but for high-income couples, the company will be more practical, simpler and easier to operate. And the trust must distribute the profit to the individual every year, the activity of controlling the time of profit distribution is not high. The investment company can also be used as a loan, and all the interest paid by the company can be used for tax deduction.
In addition, operators of limited companies are generally required to submit quarterly BAS (Business activities report), pay GST VAT. Please arrange GST. regularly and on time with your accountant
Recently, some foreign students have partnered to buy some small businesses, such as Internet cafes, chain cleaning business, etc., such a model of investment is small, high returns, than simple work is better.
