Australian Accountants can help guide and assist you through the most efficient means of business expansion into Australia.
Expansion can be a simple as:
Australian Accountants can provide guidance as to which options best suite your circumstances, to achieve your most efficient expansion structure.
Business expansion options can be broken down into two broad categories 1. Light Presence and 2. Full Presence.
Remain a Foreign business, no legal company status within Australia, Registered GST importer (where required).
1a – Ecommerce and Website sales into Australia from international Website, and/or delivery of Goods to Australia customers via a fulfilment or distribution provider, and/or small local representative or sales presence in Australia.
1b – Full time representative or sales office with local employees. All of (1-a) above plus Register as foreign local employer to employ local Australian employees and adhere to all employee and HR compliance requirements.
Cannot Claim – GST offset, open Australian bank account, enter into commercial agreements requiring a local legal entity status (ABN) such as local lease, finance, local contracts, etc.
Attain full registered company status within Australia.
2a- Australian Subsidiary Company: Full Australian legal status to conduct business and engage local employees within Australia. Requires a local resident company director and adherence to laws, registrations, compliance, taxation, duties and reporting requirements.
2b- Branch Office – Registered Foreign Company: This is a far more complex and costly arrangement with onerous reporting requirements. Generally is only of benefit where a complex international financial and tax structure needs to be maintained. This is not a recommended structure for most companies wishing to expand to Australia.
ABN = Australia Business Number (registered)
ASIC = Australian Securities & Investments Commission (company regulator)
ATO = Australian Taxation Office
BAS = Business Activity Statement to calculate GST (generally monthly or quarterly)
CFO = Chief Financial Officer
GST = Goods & Services Tax
HR = Human Resources
Local (local) = Internal Australian commercial exchange (ie Invoice) and Transaction
State = Australian state and territory (QLD, NSW, ACT, VIC, TAS, SA, WA, NT)
Tax(s) = Australian Federal, State & Local Council taxes, fees and rates