Starting a business in Australia as a foreigner - tips and instructions

Nowadays, in an open world, it hasn’t been difficult to start a business in another country. Starting a business in Australia as a foreigner is an example. 

In fact, the Australian government always facilitates foreigners to start businesses in Australia and help contribute to their economy. If you plan to have a great business idea, now it’s the suitable time to go ahead. 

This article will enlighten you on how to start a business in Australia as a foreigner with tips and instructions.

Some useful tips for starting a business in Australia

Australia is a perfect environment for business with a highly-skilled intellectual workforce of academic qualifications. 

This led to a considerable demand for business owners who start to launch their start-ups in the Australian marketplace.

Starting a business in Australia as a foreigner - tips and instructions

If you’re seriously thinking of doing a business in Australia, there are some questions to get you started:

Research several types of businesses you want to start and identify which will be suitable for you. This can be compulsory to set and achieve your business targets in Australia.

How much money do you expect to make? Which activities can give you the most success?

Who will be your target market? Spend a lot of time searching and considering your potential customers. (Where do they live? What is their income or cost of living? And do they have special demands or preferences?...). Also, determine your business’ vision by researching the potential market and estimating costs.

Understand your responsibilities and rights as a business owner in Australia.

Make a detailed marketing plan and identify the suitable channels to draw potential customers.

How to start a business in Australia as a foreigner?

If you are a foreign citizen and have an Australian visa, you have rights to do the business. Here are some steps you can take for starting a business in Australia as a foreigner.

Consider the legal and regulatory issues

It’s important to consider the legal and regulatory issues involved in starting and running your business in Australia. 

In greater detail, you should consider:

where your business infrastructures will be located in Australia;

how you can protect your intellectual property; and how you can get the necessary licenses.

It’s wise to seek legal advice with the regulatory steps to speed up the process. 

You should also consider your legal obligations with regard to:

How much tax you need to pay; or in case you employ workers; your business can ensure the health and safety for them.

Your business can meet the reporting and disclosure requirements by ASIC (Australian Securities and Investment Commission); you will follow the privacy of your employees and confidential business information; comply with consumer law.

Also, your obligations will rely on the type of business in Australia. There is no one-size-fits-all approach, so it’s cautious to master all legal steps involved before getting into a business in Australia. 

Choose an appropriate business structure

The most popular kinds of businesses in Australia are sole trader, company, and partnership. You can choose one of them to start your business.

A sole trader is a simple and common type of business in Australia and you can do it by yourself. All the assets and liabilities in the business are owned by you.

A company is a legal entity registered with ASIC. Of course, this kind of company has its own property, employees and finances. A company can offer their profits to its shareholders or keep growing the business.

A partnership is quite similar to a company, but it often has only 2 members: a promoter bringing in the money and an owner responsible for operating the business. The partnership agreement must be filed with ASIC, and each partner is in charge of maintaining accounting records and paying tax on partnership’s profits.

3 types of businesses impose different taxes, so it’s important to pick the right structure for your business depending on your goals and targets.

Pick a company name

There are many resources to help you do this, such as ABR (Australian Business Register) and ACCI (Australian Chamber of Commerce and Industry). 

Each has various criteria for picking a company name, so you should consult both sources before naming your company.

Register your company in Australia with ASIC

If you’re getting started with a company in Australia, it’s required for you to register with ASIC. 

There are some steps to this process, but once registering your company with ASIC, you’re ready to trade under your name.

To register a company with ASIC, you’ll need to provide some basic information about your business. 

It consists of your registered office address, company’s name and contact details. Some information about its directors and shareholders are included.

Finally, ASIC will require documentation to verify that your company is legitimate.

Register for your Australian Business Number (ABN)

To start and run a business in Australia, you must first register with ABN. The ABN is a unique 9-digit number to identify your business.

Register your tax file number (TFN)

It’s required to register your TFN. TFN registration is free and can be done online or offline at an Australian post office nearby. 

Once registering your TFN, you should keep updated with any changes from the TFN system.

Open a local bank account

A bank business account is unavoidable in business activities. Here are the instructions to open a local account in Australia.

You’ll need to collect the following documents:

Proof of identity (passport or your driver’s license)

Proof of address (rental contract or lease agreement)

Proof of Tax File Number

You can be requested to sign a security agreement. Depending on each bank, you can also be required to provide additional documentation (letters of reference/proof of business experience.) Once you have all required paperwork, contact the bank to ask for opening an account.

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