Australia is a very fascinating country to start a business as a foreigner, due to its very stable economy and immigration policies. Aside from the country’s historical ties to the UK, and rich and diversified culture, Australia also has a flexible immigration policy for foreigners. This open immigration policy has contributed to how foreigners can potentially relocate to Australia and start a business.
However, before you can start a business in Australia, you must first obtain the appropriate visa. There are lots of opportunities in Australia for you to explore that will result in a profitable business. Furthermore, there are some factors you need to take into consideration before planning to relocate to Australia and start a business.
Remember that small business financing can be a bit tough but will be easy if you’re equipped with detailed knowledge on how to go about it. Can a foreigner open a business in Australia? Keep reading! In this article, we’ll take you through the requirements to relocate to Australia to start a business and the steps to open a business there. Let’s get started!
Can Foreigners Open a Business in Australia?
Definitely! Foreigners are at liberty to relocate to Australia and start a business. However, note that there are specific visa regulations that control what foreigners can do when it comes to opening a business in Australia. If you want to apply for dual citizenship, also note that this comes with some financial implications.
Generally, it’s best that you have one Director of the company that is a resident of Australia. You’ll also need to have a physical address for the company in Australia and not just a postal box for the registration. Another likely route for foreigners to open a business in Australia depends on how much capital is available for the business owner, through venture capital or established business history.
Furthermore, based on the available capital and previous business history abroad, obtaining a business visa may be simpler or more difficult. For instance, obtaining the Business Talent 132 Subclass Visa will require you to have proof of substantial capital or venture capital. Usually, the interests must exceed AUD 1 million for venture capital and a substantial established history as considered suitable by the particular Australian state.
Meanwhile, you can also go through the permanent visa route and then start a business from nothing. Even though both pathways are demanding, yet satisfying in the long run.
Requirements to Start a Business in Australia
If you want to relocate to Australia and start a business, there are certain requirements you must observe. Scroll down!
1. The Proper Visa
Firstly, you must research the appropriate visa type that’s perfect for your business. In Australia, there are numerous types of business visas available for individuals to consider. Meanwhile, your success rate will depend on whether you find the right visa for your particular circumstances.
However, the most popular business visas in Australia are two, the Business Innovation and Investment Visa and the Business Talent Visa. If you want to apply for the Business Innovation and Investment Visa, you’ll either have to be sponsored by a state government or have adequate assets to afford the minimum threshold for the investor visa.
Furthermore, the Business Innovation and Investment Visa is issued to individuals who already have a substantial amount of capital to make an existing business or start-up turn into a lucrative venture that will benefit Australia. On the other hand, the Business Talent Visa focuses on you owning part of a company that is already overseas and has at least AUD 1.5 million. Or can access substantial venture capital of more than AUD 1 million.
2. Proper Registration with Government Entities
It is very easy and quite simple to electronically register your company while in Australia. Meanwhile, there are some steps that you must follow on the website. The most essential step is to deeply search if the name of your company is available.
This is because the first thing that occurs when attempting to register a legal entity within Australia is name registration. After you have chosen a name for your company and applied for it, you’ll have to decide what kind of business you want to incorporate. Furthermore, it will help you figure out how to structure the partners and other members of your company.
At this point, you’ll be able to register your company either with a private service provider or directly with the ASIC to obtain your ACN/ABN number. The private service provider will help you handle all of the administrative duties. Interestingly, you can register a company by yourself without hiring the service of an expensive firm, due to the ease of the system in Australia.
Steps to Start a Business in Australia
1. Assess the entity type: Majorly, there are four structures to businesses in Australia. The first is a sole trader; is an individual who is solely in charge of all the affairs of the company. Secondly is the company, which is a legal entity that essentially becomes its legal personality and is entirely separate from its shareholders.
Thirdly we have a partnership, which is a group of individuals who wish to run a business together but do not own a company together. Lastly is a trust, which holds the property or income to the benefit of others.
2. Identify the business type you want: Choosing the type of business is one category, however, you must take into consideration if you would like to start a franchise or an online business. A family business, home-based business, independent contractor, or import/exporter.
Meanwhile, each of these business categories has different tax implications you must consider in conjunction with the selection of the entity type itself.
3. Apply for an Australian Business Number (ABN): The Australian government needs to review your business so it can be verified. In essence, they must ensure that the business you are trying to apply for meets ABN criteria. These criteria include: whether you are truly running your business, paying your insurance, sourcing your clients, and other things.
4. Register your website name: You do not need a website to register a business in Australia, but it’s greatly recommended by the Australian government so that customers will take your business seriously. This explains why the checklist is heavily included in opening a business entity in Australia.
5. Register for the necessary taxes.
6. Acquire your business premises by buying or leasing.
7. Arrange business insurance.
8. Research on how to sell products and services.
The Benefits of Running Your Business in Australia
Australia is a great country that creates favorable conditions for foreigners to start a new business or relocate an existing business from abroad. The country also has a magnificent corporate registration system, as well as the convenience of online registration options. Furthermore, the process of registering a corporate business in Australia is so fast, effortless, and highly efficient.
In Australia, you can complete the online registration for a legal entity in less than ten minutes. Also, your new business will be successfully registered in less than a week. The process of getting through corporate registration and bringing a business into Australia is transparent and free.
Benefits of a Small Business in Australia vs. Other Countries
Below are some of the benefits of running a business in Australia when compared to other countries. Read on!
1. Efficiency: Australia has one of the most quick corporate registrations in the world. Furthermore, business registration is available online and that’s a major benefit that individuals should consider when deciding to relocate to Australia and start a business.
You can also register a legal business in Australia in less than 15 minutes. As well as get an almost instant decision if your application does not have any major errors. This is one of the reasons business owners see Australia as an attractive choice for business.
2. Transparency: When it comes to transparency, not many countries can compete with Australia. There is not a great deal of red tape and corruption to navigate when trying to incorporate in Australia, which is very important to foreigners every day. Meanwhile, this transparency will keep being valuable as the country opens its commercial doors to more and more foreign businesses.
3. Foreign Rights: When it comes to transparency, not many countries can compete with Australia. There is not a great deal of red tape and corruption to navigate when trying to incorporate in Australia, which is very important to foreigners every day. Meanwhile, this transparency will keep being valuable as the country opens its commercial doors to more and more foreign businesses.
Australia is a welcoming and friendly country that attracts both immigration and foreign direct investment. The Australian government is pleased with the prospect of foreigners who want to relocate to Australia and start a business. Meanwhile, your major focus is to find the proper business visa for your particular circumstances.
If you can achieve this, what you will find is that you will have a very smooth process of incorporating your company and establishing your bank account both from within and outside of Australia. All the best!