Incorporation in Australia

Setting up business in Australia is generally less cumbersome and can be done within one week. One resident Director is mandatory. Australian businesses are subject to corporate income tax, at a standard rate of 30%. There is no requirement to open a corporate bank account in Australia, as local company registration in Australia can be done with a capital of AUD1. The company can hence have a corporate bank account located overseas.

1. An Australian Company can be registered with a capital of AUD1 by 1 Director and 1 shareholder of any nationality.
2. Reduced tax rate of 28.5% (compared to corporate tax rate of 30%) for companies that have an aggregated annual turnover of less than AUD 2 Million.
3. Dividends and capital gains received from both Australian and global subsidiaries are subject to a reduced corporate tax rate up to 15% if (i) the shares have been held for 1 year and (ii) represent over 10% of the subsidiary’s share capital.

• Company name – check for the availability of the proposed name. A proprietary company should have the word ‘Proprietary’ or the abbreviation ‘Pty’ in its name. The company can use the Australian Company Number (ACN) given to the company as their name. ACN is a unique number which is given to a company by ASIC.
• Filing the application form – The next step is filing the ASIC Application Form 201 (Application for Registration as an Australian Company). The duly filled form has to be submitted to the Australian Securities and Investments Commission (ASIC) for the registration.
• Each director and shareholder of the company must give their consent in writing to become the director and shareholder of the company.
• It is mandatory to have one director and one company secretary (If appointed) as Australian citizens.
• Depending upon the business and location of the company, the company must comply with the respective taxation requirements.
• A certificate of incorporation is issued by ASIC upon incorporation.