Initiating startup in Australia

14.12.2022

For fast communication with a consultant

Due to the strong economy, reliable infrastructure, favorable business conditions, and developed financial sector, Australian opportunities for developing the IT sector are truly endless. In this publication, we discuss the basics to smooth launch of a startup in Australia.

Forms of organization of company activities

In Australia, there are four main business structures to consider.

You can register as an individual entrepreneur in Australia. This involves registering as the sole owner of the company, granting you full control and responsibility for the business. You can also hire employees.
Initiating an Australian company means that you can establish a company with limited liability based on contributions, unlimited liability, or limited liability under warranty.
Establish a partnership in Australia, possible with at least two participants (up to 20) working together for profit. You can create General Partnerships or Incorporated Limited Partnerships.
It is preferable for small businesses to fund a trust in Australia. This structure is popular among small enterprises, and the establishment and management depend on the specific arrangements between trust participants.

Australian legislation provides for the possibility of changing the structure of a business as it grows and develops. You can always get more detailed information on creating a company. Contact us to book a regulatory consultation in Australia.

Apply for an Australian Business Number (ABN) and register your business name

In accordance with current legislation, to register an Australian startup project and be able to legally carry out its activities in the country, you must obtain an ABN. This is a unique 11-digit number that acts as a government identifier for a company.

Once you receive this identification number, you will be able to:

register a brand in Australia;
enter into contracts with other organizations on issues such as ordering goods and services or sending invoices;
receive loans and apply for various grants.

Please note

that it is best to decide on your company name before creating a website URL, logo or any other piece of intellectual property. When registering a startup in Australia, many decide to register their brand and patent their logo to prevent copyright infringement.

Register a domain name in Australia

You can only get a .com.au address if you:

reserve the name of the company;
set up a company in Australia; and
get an ABN.

The domain name must be unique. Once you have found a suitable and free URL, you can go to the .au Domain Administration Ltd (.auDA) website to get information about the cost of domain registration in Australia.

Funding for startups in Australia

While there aren't many government-level grants that can help you launch a startup in Australia, you do have the opportunity to take advantage of options available in individual states. For example, if you decide to start a business in Adelaide, you can apply for the Small Business Development Fund program.

By visiting your country's government website, you will find a complete list of types of grants that can partially fund your business.

Selecting a software stack

One of the important stages when launching an Australian startup is choosing software. This will largely depend on the type of business, however virtually every company should use:

CRM for tracking significant customer information;
accounting software;
analytics tool to track business growth metrics.

Taxation of an investment project in Australia

Creating an investment project in Australia involves a thorough understanding of the country's tax system. Australia has a well-developed and complex tax framework, and it's crucial to comprehend its various components to make informed financial decisions for your investment project.

10% value-added tax for most goods and services in Australia.
30% corporate income tax.
The CGT system applies when you sell certain assets, including real estate, shares, and business assets.
The maximum duty rate is 5%.
Australia's states and territories may levy their own taxes.

Navigating the Australian tax system can be complex, and it's advisable to seek professional advice from tax experts or financial consultants who are familiar with the intricacies of the Australian tax regime. Proper tax planning and compliance are essential for the success of your investment project in Australia.

Conclusion

The Commonwealth of Australia is a state that is considered one of the world's economic leaders. A favorable business environment, a stable political situation and a developed infrastructure are the key advantages of the jurisdiction. In addition, the country’s legislative framework is adapted to crypto business. For more information on this topic, you can book a consultation on business regulation in Australia by contacting YB Case. Experienced specialists will advise you and provide support in launching a new Australian startup project.

Tags: Australia