Australian Company Setup for Philippine Residents: Complete Guide

Are you a Filipino entrepreneur looking to expand your business horizons? Have you considered establishing your firm in Australia? With its robust economy, stable political climate, and business-friendly environment, Australia has become an attractive destination for many Filipino entrepreneurs. Setting up an Australian company can open doors to new markets, access to capital, and potential tax advantages.

However, navigating the Australian business landscape can be complex, especially for those based overseas. This thorough guide aims to streamline the procedure of setting up an Australian company for Philippine residents. We’ll cover everything from selecting the best legal entity to understanding the tax implications.

Why Choose Australia for Your Business?

Australia offers a compelling proposition for Filipino entrepreneurs. Here are some key reasons why:

• • Robust Economy: With a high GDP per person, Australia boasts a stable, diverse economy.

• • Business-Friendly Environment: The Australian government offers a framework that is conducive to business, including expedited registration procedures and subsidies and incentives.

• • Access to International Markets: Australia is ideally situated to strategically expand its reach into the Asian and Pacific markets due to its geographic location.

• • High Quality of Life: Australia is an attractive country to live and work, routinely scoring highly in international quality of life indices.

• • Skilled Workforce: Australia has a workforce with a high level of education and skill that is available to talent in a variety of industries.

Key Legal Requirements for Australian Company Setup for Philippine Residents

While Philippine residents can establish a company in Australia, there are specific legal requirements to adhere to:

• • Company Structure: You must choose a suitable business structure, such as a Proprietary Limited Company (Pty Ltd).

• • Registered Office: The firm should have a registered office address within Australia.

• • Director and Shareholder: At least one director must be an Australian resident, but shareholders can be foreign nationals.

• • Company Name: The selected company name needs to be available for registration and adhere to Australian naming standards.

• • Australian Business Number (ABN): You’ll need to obtain an ABN for tax and government registration purposes.

How to Select the Appropriate Business Form for Australian Company Setup for Philippine Residents?

Selecting the best legal entity is critical for the success of your company. The most common structures in Australia are:

1. Sole Trader

A sole trader is a straightforward and economical business form in which one individual owns and administers the company. However, limited liability protection is not offered by this arrangement.

2. Partnership

A partnership is a structure wherein two or more people divide the company’s assets and responsibilities. Although setting up this organization is not too difficult, a precise partnership agreement is needed.

3. Company

A business is an independent legal body that offers its investors limited liability protection. Although this structure is more complicated and requires more money for setup and compliance, it has benefits in terms of credibility and future expansion.

4. Trust

An arrangement wherein a trustee maintains assets for the benefit of beneficiaries is called a trust. This structure can provide tax advantages but requires careful planning and legal advice.

Factors to Consider

When choosing a business structure, consider the following factors:

• • Liability Protection: Decide how much personal responsibility you are ready to take on.

• • Taxes: Take into account how each structure will affect your taxes.

• • Control and Management: Make a decision about the business’s management and control.

• • Compliance Costs: Determine how much it will cost to establish and keep the structure.

• • Future Growth: Consider the potential for development and investment.

Steps for  Australian Company Registration for Philippine Residents

Choose a Business Name 

In accordance with Australian naming guidelines, pick a distinctive, readily available company name.

Appoint a Director

A minimum of one Australian resident has to be appointed as the director.

Determine Shareholder Structure 

Decide on the shareholders and their shareholding percentages.

Obtain Necessary Paperwork

Assemble the necessary paperwork, such as passports, proof of address, and director and shareholder identity.

Register with ASIC

Submit the application and required fees to the Australian Securities and Investments Commission (ASIC).

Obtain an ABN 

Apply for an Australian Business Number from the Australian Taxation Office (ATO).

Establish a Corporate Bank Account

Establish a corporate bank account in Australia.

Essential Documents for Company Registration in Australia for Philippine Residents

Here are the key documents you will need to register your company in Australia:

• • Company Constitution: A document outlining the rules for managing the company.

• • Director and Shareholder Details: Details such as names, addresses, and identity documents concerning the company’s directors and stockholders.

• • Proof of Address: A document verifying the registered office address of the company in Australia.

• • Application Forms: Completed forms for registering the company and applying for an ABN and TFN.

• • Share Certificates: Certificates given to shareholders attesting to their shareholding in the business.

• • Partnership Agreement (if applicable): A document outlining the terms of the partnership, if you are setting up a partnership.

Cost of  Australian Company Registration for Filipino Citizens

The price of incorporating a business in Australia can change based on your company’s needs and the structure of your enterprise. Here are a few of the primary expenses to think about:

• • Government fees for company registration

• • ASIC fees

• • Legal and accounting fees (if using professional services)

• • Continuous compliance expenses (such as tax filings and annual returns)

Based on the selected business framework, setup difficulty, and additional services needed, the precise pricing may change.

Tax Implications for Philippine Residents with an Australian Company

As a Philippine resident with an Australian company, you will need to comply with Australian tax laws. Here are some key tax implications:

• • Income Tax: You will be subject to Australian income tax on your earnings from the Australian company.

• • Capital Gains Tax: If you sell any assets in Australia, you might have to pay capital gains tax.

• • Tax Filing Requirements: You must file tax returns with the ATO annually.

Conclusion

Filipino citizens wishing to grow their business abroad have a plethora of options when establishing a company in Australia. You can effectively create your company in Australia by being informed of the legal requirements, choosing the appropriate business structure, and carefully completing the registration process. The expenses and tax ramifications are significant factors to take into account, but you can successfully manage these difficulties with careful preparation and expert guidance.

At OnDemand International, we specialize in helping entrepreneurs with business registration in Australia and provide comprehensive support for all your business-related needs. Contact us today to take advantage of Australia’s growing economy and start your business journey.