Are you an aspiring entrepreneur in India dreaming of starting a business in Australia? With Australia’s robust economy, multicultural society, and favorable business environment, it’s no wonder that many Indian entrepreneurs are eyeing the Land Down Under as their next business venture destination. From the bustling cities like Sydney and Melbourne to the serene landscapes of Perth and Brisbane, Australia offers a plethora of opportunities across various industries.
In this comprehensive guide, we’ll delve into the intricacies of establishing a business in Australia from India. From understanding the legal requirements and navigating the visa process to exploring potential market niches and overcoming cultural differences, we’ll cover everything you need to know to kickstart your entrepreneurial journey in Australia.
How to Start a Business in Australia from India?
- The first step is doing market research and preparing a business plan. Conduct thorough market research to understand the industry, target audience and competitions. Afterwards, prepare a business plan in which you have to mention your objectives, strategies and financial projections.
- The second step is to choose a business structure according to your business niche. There are different types of business structure in Australia such as Sole trader, Partnership, Proprietary company and Trust. Proprietary company (Pty Ltd) is the famous business structure chosen by the entrepreneurs due to lots of its benefits.
- The third step is to choose a business model for your business. Once you have selected your preferred business structure, you need to choose a business model.
- The fourth step is to choose and verify your business name. Make sure your desired name is unique and not already used. You can verify your business name by checking in the database of Australian Securities & Investments Commission (ASIC).
- The fifth step is choosing a registered office address for your business. After choosing your business model, you need a registered office address where the Australian Securities and Investments Commission (ASIC) will send your business documents. Registered office address will be treated as a principal location of your business.
- The sixth step is choosing a local nominee director. To register your business in Australia, you need a local nominee director who also needs to provide written consent to register the business and list their name.
- The seventh step is to register your business with the ASIC. After choosing the business structure for your business, the next step is to register your business with the ASIC. You can do it online. After registration, you will receive an Australian company number (ACN) and registration documents.
- The eight step is to apply for an Australian business number (ABN). An Australian business number is an 11-digit number unique to your business as an identifier. ABN used to track the business-related activities in Australia.
- The ninth step is to get a tax file number for your business. If you operate your business as sole trader, partnership, proprietary company or trust, you need a tax file number for your business
- The tenth step is GST registration. If your business’s turnover is more than $75,000, you need to register for goods and services tax within 21 days. Most businesses can register for GST once they have an ABN.
- The eleventh step is opening a corporate bank account. You need to open a separate corporate bank account for your business. To open your bank account, you’ll need your ABN, business name registration, and identification documents.
- The final step is to obtain a required permit and business licenses for your business. According to your business activity, you need a required business license to operate your business legally.
Immigration Ways for Starting a Business in Australia from India
- Business Innovation and Investment visa (subclass 188): This visa allows experienced business owners and investors to migrate to Australia. It has several streams, including the Business Innovation stream for entrepreneurs and the Investor stream for investors.
- Skilled Independent visa (subclass 189): While not specifically for business owners, this visa allows skilled professionals to migrate to Australia. If you have a proven background in owning or managing a business, you may be eligible.
- Temporary Skill Shortage visa (subclass 482): This visa allows businesses to sponsor skilled workers from overseas. If you have a business idea and can find an Australian business to sponsor you, this could be an option.
- Entrepreneur visa (subclass 188E): This is a new visa being introduced by Australia. It will allow entrepreneurs to migrate to Australia to develop and commercialize innovative ideas.
Benefits of Forming a Company in Australia from India
- Limited liability: Registering as a company offers shareholders limited liability, meaning they are only accountable for the firm’s debts to the extent of their investment.
- Tax concessions: Companies in Australia are eligible for a range of tax concessions, including a lower corporate tax rate and access to tax offsets.
- Credibility: Having a registered company can enhance the credibility of a business, making it more attractive to customers, suppliers, and investors.
- Flexibility: Companies can be structured in a variety of ways, offering flexibility for different types of business models and ownership structures.
- Access to capital: Registered companies can access capital through equity and debt financing, which can be beneficial for growth and expansion.
- Ease of ownership transfer: Shares of companies can be bought and sold more easily than ownership in other business structures, making transferring ownership of a business more efficient.
Cost to Establish a Company in Australia from India
The costs to form a company in Australia can vary depending on the type of company and the services required, but generally range from AUD 500 to AUD 1,500.
Here are some of the key costs involved:
Government Fees
- Registering a proprietary company (Pty Ltd) costs around AUD 500 to AUD 600
- Registering a public company costs around AUD 600
- Reserving a company name costs AUD 59
Legal and Professional Fees
- Legal fees for setting up a company can range from AUD 500 to AUD 1,000
- Accounting and tax advisory fees may also be required
Other Costs
- Obtaining an Australian Business Number (ABN) and Goods and Services Tax (GST) registration, if required, costs around AUD 50
- Costs for securing a business name, if different from the company name
It’s important to note that these are approximate costs and may vary depending on your specific requirements and the service providers you choose. It’s advisable to consult with experts from OnDemand International to get a more accurate estimate based on your business needs.