Australia

Australia, or the Commonwealth of Australia, is located in the Southern Hemisphere and occupies the mainland and several nearby islands. It is included in the list of countries with the largest area in the world. Indonesia, New Caledonia, New Zealand, Solomon Islands and Vanuatu make up Australia's neighbours. Australia's population is small, situated mostly in cities on the east coast.
The most widely spoken language in Australia is Australian English. The Australian dollar is established at the national level as the official currency.

Australia is considered to be one of the most developed countries, with a high GDP per capita and a very developed economy. It should not be ignored that the Commonwealth has high indicators in many areas of life, such as a decent quality of social security, health care, education, and its judicial system.
The Commonwealth has an active foreign policy aimed at international integration and cooperation. Australia is a member of international organisations: G20, OECD, WTO, APEC, UN, Commonwealth, ANZUS and the Pacific Islands Forum.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:

  1. Lack of currency controls.
  2. There are no share capital requirements.
  3. A relatively quick incorporation of the company.
  4. There are legal ways of reducing tax rates.
  5. A flexible and simple tax system.

Organisational and legal forms of companies

According to current Australian law it is possible to register your company in the following legal forms:

  1. Unlimited company that has share capital;
  2. A company limited by shares;
  3. A company limited by guarantee;

The most popular form of incorporation is a company limited by shares. There can be no more than 50 participants. According to the founders' wishes, the company can be either private or public. A public company, unlike a private one, has the right to list its shares on the Australian Stock Exchange. The name of such a company must contain the words "Limited" or "Ltd". At least one director who is a resident in Australia is required. It is worth noting that a secretary is not necessary, but desirable. A company cannot exist without a registered office at a real address where corporate documents will be stored.

Features of company incorporation

Based on the analysis of the current legislation regulating the activities of business entities, the following can be highlighted with regards to the specifics of the process of registering your business:

  1. Necessary documents for the incorporation of the company in Australia: completed and signed forms, copies of passports of directors and founders. If the founders are legal entities, the statutory documents of the founding company and the decision on the establishment of the subsidiary, notarised and translated into English, shall be required).
  2. Upon incorporation, each company in the Commonwealth receives a unique business number (ABN).
  3. The company name must reflect its legal status.
  4. The company secretary must be an Australian resident.
  5. At least one of the directors must reside in Australia.

Taxes and fees

The state has the following features for levying taxes and fees

The basic rate of corporate income tax in the Commonwealth is 30%, except for companies that run small businesses with revenues less than A$50 million, which are taxed at a rate of 27.5%.

Companies resident in Australia are subject to income tax on their worldwide income. Generally, non-resident companies are only subject to Australian income tax on income derived from Australian sources.

Dividends are taxed differently depending on whether the shareholder is a resident or non-resident in Australia. If you are not a resident in Australia, a specified amount of dividends paid or credited to you shall not be subject to Australian income tax or withholding tax. The availability of ABN and TFN plays an important role in determining how withholding tax is calculated and how much tax shall be paid. An ABN (Australian Business Number) is a unique number which is used by businesses registered in Australia to identify a company to the Australian Government and also to communicate with the Australian Taxation Office. In simple terms, a TFN is a tax number. This is a personal identification number in the tax and pensions system and is issued by the Australian Taxation Office.

VAT in the Commonwealth of Australia is known as the Goods and services tax (GST). The GST is a 10% tax on most goods, services and other taxable items sold or consumed in Australia. If you run a business or other enterprise and have a Goods and Services Tax turnover of $75,000 or more ($150,000 or more for non-profit organisations), or you provide taxi rides (including pick-up services), you must register as a GST payer.

Companies in the Commonwealth of Australia are required to file an annual return for tax purposes.

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