Deciding to move your business to a foreign jurisdiction is one thing; however, making that vision a reality is quite another. In order to move your company to any other country, you are going to have to plan quite carefully in order to be successful.
When conducting your research, you will quickly find that Australia is among the top choices when it comes to relocating your business to a foreign country. There are many reasons why Australia is amongst the top ranked countries for foreign business relocation.
One of the primary reasons that Australia is one of the top ranked is that Australia is efficient in terms of relocation procedures and transparency of requirements to foreign business owners. In many jurisdictions around the globe, it is quite difficult to establish a corporate entity.
When seriously considering moving your business to Australia, consider the information and required steps below:
Most Common Reasons to Move Your Business to Australia
Many foreign corporations periodically debate about moving their corporate entity to Australia. That said there are certain reasons for relocating one’s business to Australia worth considering. Here are some of the most common reasons to relocate one’s business to Australia:
1. Regional Presence: Many business owners that having an office in Australia is an importance strategic objective for Asia, Australia, and Oceania. Many of the markets in both Southeast Asia and Oceania have some sort of connection to commerce in Australia. This is why having an office in Australia is a wise move to promote efficiency in one’s business.
2. Transparency: Many jurisdictions in the world do not have transparent business practices and many times, bribery is rampant to get companies established. There are also parts of the world that have a great deal of bureaucracy. Australia is distinct in that it does not have these issues and it also has the advantage of allowing foreigners to establish their businesses before arriving. The Australian government is actually putting in an effort to establish a transparent business environment.
3. Tax Benefits: Tax benefits are something available in Australia once a business is relocated there. The Australian government actively encourages entrepreneurship, which is why it is highly beneficial to take advantage of the tax programs that the Australian sets up for industries they are trying to assist in fostering positive growth. These programs are one of the many reasons that Australia’s economy has done so well because the government has invested in developing businesses that otherwise would have experienced delays.
4. Start Up Focus: Not every country in the world is friendly to the Start Up culture of business. In fact, other countries rarely provide financing options to businesses that do not have established commercial history. This is precisely why companies that are in their early years consider relocating to Australia because they have the opportunity to obtain unique financing and growth funding that they may not be eligible for in their home countries.
5. Established Procedures: Australia is one of the few countries in the world that makes opening a business quite simple for both foreigners and locals alike. This is something that is quite valuable because many times, foreigners can open their company in Australia without investing a substantial amount of capital on lawyers that could end up making their startup investment quite difficult to balance with their existing expenses in their home jurisdiction.
Relevant Decisions that You Have to Make
When you are attempting to decide whether moving your business to Australia is a wise decision, it is important that you conduct a cost-benefit analysis as to whether the investment required to relocate your business operations to Australia will be fiscally worthwhile. Once you make this determination by looking at the costs associated with moving your operations there, you will be able to make a projection of the profits that you will likely make. Upon reviewing this information, you will know instantly whether relocating your business to Australia will prove fruitful to you in the long term.
The Required Steps to Relocate Your Business to Australia
It takes a great deal of work to relocate your business to Australia. Consider these integral steps to have a successful transition to the Australian market:
1. Sort Out Your Visa Issues: In order to bring your business to Australia as a foreigner, you are going to have to arrange for to obtain the proper visa. There are several different visas that are targeted at foreigners that are quite easy to obtain for an individual that this trying to relocate their business to Australia. The two types of visas are the Business Talent Visa and the Business Investment Visa. The Business Investment Visa will require less capital to start off and will have to be registered to a specific state within Australia to be considered for industries that are lacking. For the Business Talent Visa, it will require a business that has over $3 Million AUD in profits annually to be successful,
2. Register a Company: Registering a company in Australia is quite a simple process. The Australian government has a simple online portal that allows both citizens and foreigners to register for a company quite easily. Before doing so, it is important to ascertain whether your company name is available. Once you realize that the company name is available, then you will be able to register the company name. The process is quite short and you will likely be approved within an hour if there are no glitches.
3. Move Capital: One of the key steps that you will need to make is to open a company bank account and to move capital there sufficient to handle your startup costs when you relocate to Australia. What is delightful about Australia is that it is possible to open your bank account before you arrive in Australia. Once your company name has cleared, you will be able to open a bank account easily in Australia. Additionally, it is wise to use a money transfer company to move your capital so that you will be able to obtain the lowest exchange rate and fees possible when you are moving substantial amounts of capital.
4. Make Taxation Plans: Upon moving your company to Australia, you should hire a local accountant to give you advice on taxation issues. Taxation regulations vary by country, which is why it is important for you to obtain advice regarding which taxation regulations will provide you risks and which you can use to your advantage. Staying current on your taxation regulations is vital to your company’s success in Australia.
5. Raise Necessary Finances: Relocation absolutely is expensive. You may want to consider financing options either in your home country or in Australia. The reason for this is that the costs will be able to be offset by financing and paying off those obligations as your profits begin to occur within Australia. Planning to raise financing does take time, thus, it is best that you start this process early for the best possible results. If banks reject your loan applications constantly then you can try to approach private lenders like GetCapital.
6. Coordinate Shipping: A common issue that is forgotten by business owners is the cost of shipping. It is important to find a logistics company to work with that has affordable shipping prices if you need to move office furniture to Australia. If you find that you would not like to move so many items, then you may want to consider purchasing at least the furniture within Australia. If your company is in the import/export industry, you are going to have to ship your stock to Australia in order for it to be able to reach your clients. Make sure that you calculate this major expense into your costs to not face any unfortunate surprises.
7. Hire an Attorney: Even though registering a company is quite simple in Australia, you should still have a lawyer that you work with regularly to guide you through new issues that your business may come across in Australia. Legal statutes vary by country and it is important that you have a legal expert to assist you if you are new to the regulations that exist within Australia.
8. IT/Phone Plan: In order to get your company started in Australia, it is important that you have a working website and phone plan for your business. Make sure that your social media is current. All of these items incur a cost, but need to be tailored to the Australian market. The sooner that you invest in this, the better because it will allow you to spread your influence in Australia at a faster rate.
9. Office Space: Overall, Australia is a very expensive country. Make sure that you start looking for an office space early. Your rent on your office will be one of your main costs. Be sure that you are picking an office that is an appropriate size. If you do not need a larger office, then you will be able to save a lot of capital that you do not need to be spending at the beginning. Additionally, consider a less central location if your industry permits and you are not required to be in the center for receiving clients at your office location. Lastly, make sure you have sufficient capital for at least 3-5 months of rent given that you may have to work with a real estate agent, pay your first month of rent, and pay a deposit all at once.
10. Advertise: Your marketing strategy is something that you should be thinking about before relocating your business to Australia. Consider how much capital it will truly take to get your company business. Advertising costs can really add up. If you plan for these expenses and make an effective marketing strategy, you will be able to do quite well when you enter the Australian economy for business.
Australia has a plethora of opportunities for business owners that want to take their operation to the next level. It is important to be diligent about the research that you undergo before deciding to relocate your company to Australia. In terms of efficiency, there are many advantages to moving your business to Australia because you will be able to do the majority of the registration online, which is quite unusual compared to other countries. That said, it is important to be conscious of your costs so that you have to incur for your relocation. Through effective planning and financial strategy, you will be able to overcome this hurdle.
Lastly, do not be afraid to hire lawyers, accounts, and marketing experts to advise you. What you will find is these professionals will be vital in your ultimate success in Australia. Australia is a spectacular place to grow your company once make the proper strategy and gain the required expertise to help you in being successful with your upcoming business relocation.