Setting up business in a new country can be overwhelming. There is much to consider.
Over the years, we have assisted a number of companies and individuals with their inbound business needs. Below is a checklist that we often run through with our foreign clients that are expanding to Australia.
AUSTRALIAN INBOUND BUSINESS CHECKLIST
BUSINESS SET-UP
- What is the most suitable Australian business structure?
- Does the business require an Australian Registered Office?
- Does it attend to Australian Securities and Investment
Commission (ASIC) requirements? - Does it require an acting resident Company Director and/or Public Officer?
- Does the business require a local agent?
- Does it have an adviser in place to assist with all compliance, lodgement and audit obligations, including possible exemptions?
BUSINESS REGISTRATIONS
- Is the business registered with the Australian Taxation Office for Income Tax, Australian Business Number, Goods and Services Tax (GST) and Pay As You Go (PAYG)?
- Is the business registered with State authorities?
- Has an application been submitted for substituted accounting period and income tax year to align with the Holding Company?
BANKING REQUIREMENTS
- Does the business require assistance with the set up of Australian banking and financing facilities?
- Does the business require an acting Australian-based joint signatory of the bank account?
CORPORATE SECRETARIAL REQUIREMENTS
Has the business considered:
- Preparation and lodgement of annual Company Statement
- Preparation of annual resolutions
- Updating and maintaining of corporate register
MONTHLY ACCOUNTING/ TAXATION MATTERS
Has the business considered the following monthly obligations:
- Bookkeeping requirements
- Financial statements for head office
- Taxation compliance
PAYROLL REQUIREMENTS
Has the business:
- Arranged tax effective salary packages?
- Completed employee declaration forms and applications for income tax and superannuation?
- Processed employee payroll, tax obligations, superannuation, employee insurance and annual declarations and notifications?
- Attended to payment of wages and employee on-costs, as required?
- Communicated with employees and Head Office Human Resources in relation to payroll queries and compliance issues?
ANNUAL ACCOUNTING/ TAXATION MATTERS
Does the business require:
- Preparation of Financial Annual Reports
- Preparation of annual income tax return
- Australian and international taxation advice, including transfer pricing, Country-by-Country and thin capitalisation issues
ANNUAL AUDIT/ GROUP REPORTING
Does the business require:
- Annual audit of local statutory financial statements and/or Group reporting package
- Group reporting to Head office auditors
WEALTH MANAGEMENT
- Do the business owners require assistance with application to Foreign Investment Review Board (FIRB)?
Australia is a wonderful place to establish a business. However, it is important to partner with an adviser who understands the requirements and can help you navigate the compliance process for the local market.
Further detailed information about the Australian business climate, taxation and other investment factors, download HLB Mann Judd’s Doing Business in Australia booklet.