CLA Consultants Group has assisted our multi-national Clients’ Clients with company registration in Australia. Our professional services include i) Australia company formation services ii) Australia business license registration services iii) Australian nominee director services iv) corporate bank account opening services in Australia v) Australia company statutory accounting and tax services vi) Australia office rental solutions and vii) employee recruitment and visa services.

Choose CLA Consultants for your Australia company setup needs and benefit from our customized services, expertise and exceptional support.

• Our multi-national Clients’ are attracted to the Australian market because it presents many business opportunities including:
  • Australia is the world’s 14th largest economy, where English is the primary business language. The key sectors of the Australian economy are health and education (13.2%), mining (11.5%), finance (8.0%), construction (7.4%) and manufacturing (6.0%). Between 1991 and 2019, the country’s economy expanded steadily without recession; and
  • At present, the most significant growth opportunities in Australia are in sectors such as i) enhancing digital capabilities and ii) investment in new technologies and iii) and iv) healthcare and renewable energy sources and v) investment in commodities producers and support services and vi) cryptocurrency exchanges; and
  • The Australian labour force is highly educated with a strong multicultural background. Approximately 69% of Australia’s working age population has a university degree, diploma or trade qualification; and
  • Australia is blessed with an abundance of mineral and agricultural resources and i) the world’s largest producer of iron ore, gold and uranium and ii) a world leader in mineral and LNG extraction and iii) food production. Consequently, natural resources make up 49% of Australia’s exports; and
  • Most Australian imports include i) machinery such as computers, vehicles, electrical machinery and equipment and ii) mineral fuels including oil and iii) pharmaceuticals and iv) gems and precious metals and v) plastics and vi) furniture; and
  • The country has a well-developed financial sector.
• The Australian Government supplies multiple incentives and grants and exemptions to small companies including:
  • Exemption from an independent statutory annual audit of financial statements; and
  • Export Market Development Grants to cover the costs of i) overseas market research and ii) certain overseas transport expenses and iii) establishment and maintenance of overseas sales representatives and iv) advertisements (such as brochures) for overseas distribution and v) overseas promotions such as trade fairs and exhibitions and vi) costs related to quotations and tenders for overseas export business; and
  • Export insurance and finance to cover commercial and political risks including i) bankruptcy of the buyer and ii) indemnification against non-payment of goods by the buyer and iii) repudiation by the buyer under an enforceable contract; and
  • The Manufacturing in Bond (MiB) program that allows the manufacturing of goods in a Customs-licensed warehouse, using imported components without duty. A firm with MiB approval will be able to import dutiable goods into a licensed warehouse free of goods and services tax and duty. If the goods are later re-exported, either in their original or manufactured form, no goods and services tax or duty is incurred; and
  • A 43.5% refundable tax offset for eligible entities undertaking eligible research and development (R&D) activities; and
  • An exemption from capital gains tax on the sale of non-portfolio shareholdings in a foreign company held by an Australian company, where the foreign company has an active underlying business; and
  • Under the Venture Capital Limited Partnership (VCLP) program, certain foreign VCLP investors are exempt from capital gains on the profits of the VCLP’s eligible venture capital investments; and
  • There is no longer stamp duty on the transfer of shares.
• Australia boasts a well-established transparent legal system for litigation and arbitration, inherited from the British model. Typically, it takes around 402 days to enforce a business contract in Australia, which is significantly shorter than the average in other OECD countries. Business in Australia is conducted in a transparent, well-regulated and politically stable environment. Thus, robustly protecting multi-national Clients’ investments with i) strong IP laws for trademarks and copyright and patents and trade secrets and ii) quality local franchise rules and iii) detailed anti-competitive conduct by rival companies including misuse of market power and iv) strong consumer protection laws including product safety and v) prescriptive laws re packaging, labelling, ingredients, marketing and sale of certain products and vi) strong anti-bribery laws at federal, state and territory levels. Australia is a signatory to the United Nations Convention Against Corruption and the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; and
• Australia has an AAA international credit rating with a well-developed, sophisticated financial market. As an ASX Exempt Foreign Listing, a foreign company can fast list its securities on the ASX and not required to comply with the majority of the ASX Listing Rules. Furthermore, investors with access to the US markets are also able to invest in certain ASX-listed entities by way of American Depositary Receipts; and
• There are simple strategies to legally minimise Australian taxes including:
  • If certain conditions are met, management and service fees paid to an overseas parent company do not suffer Australian withholding tax, while simultaneously allowed as an expense deduction against the Australian subsidiary annual net profits; and
  • An Australian non-resident branch of a foreign company is legally tax exempt of Australian corporation tax if i) sales income is derived from overseas customers and ii) there is no permanent establishment in Australia; and
  • Local income of an Australian tax resident branch suffers 30% corporation tax. No further Australian taxes are paid when branch profits are remitted overseas; and
  • Australia has double tax treaties with more than 45 countries, including the USA and most of Western Europe and Asia; and
  • Australian tax rules provide an exemption for dividends from i) controlled foreign companies and ii) branch profits from operations in foreign jurisdictions.

• It is difficult for an Australian small company to be profitable. Australia is a tax punitive country, with little cash flow left after payment of i) corporation tax of 30% and ii) personal income tax of 47% and iii) withholding tax of 30% on overseas remittances and iv) fringe benefits taxes of 47% and v) GST of 10% and vi) high payroll costs. Furthermore, Australian companies and individuals are taxed on worldwide income. Consequently, the 2023 World Competitiveness Yearbook poorly ranked Australia at 61 out of 63 countries for entrepreneurship;
• During the company incorporation process, multi-national Clients’ face some logistical challenges including:
  • All directors of an Australian business must secure a DIN number from the Australian ABRS. It can take up to 3 months to secure this number. Fortunately, CLA Consultants Group has a legal workaround solution to minimize a delay to the company incorporation process;
  • In accordance with Section 201A of the Australia Corporations Act 2001, every Australian Company must appoint at least one director who is ordinarily resident in Australia. Most of our Clients request CLA Consultants Group to provide a nominee professional, passive resident director;
  • Securing an Australian Business Number (ABN) can take 6 weeks;
  • Before multi-currency corporate bank account approval, there is a 75% probability that Australian banks will request a face-to-face meeting with one director or the bank signatory;
  • The requirements around business regulatory licensing varies from Australian state to state. CLA Consultants Group will help our Client carefully check licensing requirements in each State; and
  • Many large Australian banks are reluctant to onboard small businesses. For example, one Australian bank requests businesses to have a minimum annual turnover of A$50 million. With our historical business relationships with Australian banks, CLA Consultants Group will timely secure multi-currency corporate bank account approvals;
• Monthly and quarterly Government reporting is administratively heavy, requiring an average of 23 hours per month. Consequently, it is necessary to appoint independent lawyers and accountants that can be expensive. Statutory reporting obligations include i) quarterly advance corporation tax payments and ii) monthly GST payments and iii) Austrac reports for overseas transactions exceeding A$ 10,000 and iv) payroll reporting. Furthermore, each of Australia’s states and territories imposes their own form of taxes including stamp duty, payroll tax and land tax;
• International trading to and from Australia is difficult because i) of its remote geographical location and distance from other countries and ii) high transport and logistical costs and iii) inefficient customs clearance procedures. This is why the World Bank poorly ranks Australia at 106 out of 250, for trading across borders;
• While doing business in Australia, multi-national Clients’ encounter multiple annual challenges including:
  • To solve banking problems, Australian banks require bank signatories to ring, but bankers only accept calls during Australian business hours! impractical and unhelpful for our European and USA Clients’;
  • Similar to the USA and Canada, our Clients’ need to be familiar with i) federal law and ii) State laws and iii) territory laws and iv) local council laws; and
  • Labour relations are highly regulated and favor employees;
  • Because of stringent environmental protection regulations at federal and state and territory and local council level; our Clients’ may need an environmental licence or permit for their business activity.
• Employing Staff in Australian is difficult because:
  • Staff productivity is low because Australian employees i) must not be required to work beyond a maximum of 38 hours per week and ii) enjoy a minimum of 20 days of paid annual leave per year and 10 days of paid leave per year and iii) additional long service leave legislation in each state and territory and iv) up to 24 months of unpaid leave upon the birth of a child and v) 8 public holidays per year. Consequently, the 2022 World Competitiveness Yearbook poorly ranked Australia at 41 out of 63 countries for workplace productivity; and
  • Australian employees are expensive because i) employers must contribute 11% to their superannuation fund and ii) employers must purchase workers’ compensation insurance and iii) employees enjoy generous redundancy severance payments and iv) employers must pay fringe benefits tax for non-monetary remuneration and v) employers must comply with aggressive work health and safety laws and vi) pay high payroll taxes and vii) employment laws differ between state and territories and viii) the strong presence of trade unions and ix) aggressive anti-discrimination legislation.
  • Multi-national Clients’ will likely require Australian Government approval i) before they can conduct business in the sectors of mining and agribusiness and media and telecommunications and transport and ii) before the purchase land and commercial property;