Setting up a business in Australia

However, opening a business is never exactly simple and when you are starting off as someone unfamiliar with a country and its regulatory and legal requirements, it can be even more difficult. We break down some of these important aspects of starting and doing business in Australia, including visa advice, how to obtain the necessary permits and licenses, what you need to know about taxes, and how to comply with workplace laws and regulations.

Visas for doing business in Australia

First things first: in order to start a business in Australia, you need the appropriate visa. Luckily Australia has a number of visa options that are geared toward entrepreneurs and investors. The two main visas in this class are the Business Innovation and Investment (subclass 188) visa, which is a temporary visa that allows you to own and manage a business in Australia, and the Business Talent (subclass 132) visa, which is a permanent visa for “high-caliber” business people who want to establish or develop a business in Australia.

Business Innovation and Investment visa

Depending on your situation, you may be able to apply for a Business Innovation and Investment Visa. This visa allows you to own and manage a business in Australia, conduct business and investment activity in Australia, or undertake an entrepreneurial activity in Australia. There are different streams of the visa, including the Business Innovation Stream, Investor Stream, Significant Investor Stream, Premium Investor Stream, Entrepreneur Stream, and Business Innovation Extension Stream. Each stream has different eligibility requirements and criteria, such as a minimum investment amount, turnover, or net assets.

Eligibility

To be eligible for the subclass 188 visa, applicants must be nominated by a state or territory government or Austrade and score at least 65 points on the points test. They must also meet health and character requirements and have sufficient funds to support themselves and their families during their stay in Australia. After holding a subclass 188 visa for a certain period and fulfilling certain criteria, such as maintaining business or investment activities, creating jobs, or meeting turnover requirements, applicants may be eligible to apply for the subclass 888 visa, which is a permanent residency visa for Australia.

Length of stay

This provisional visa allows you to stay in Australia for up to four years and three months. After this expires, you are eligible to apply for the permanent stream of the visa, which allows you to stay in Australia permanently.

Costs

The costs for this visa vary depending on the stream you apply for, but generally, costs include a visa application fee of AUD 7,880. This fee is non-refundable, even if your visa application is rejected. In addition to the base fee, you may need to budget for the cost of health assessments, English language proficiency tests, and the business costs associated with setting up a business in Australia, such as registering your business, leasing or buying property, and hiring staff (more on these steps below).

Application steps

Good to know:

You can't ask for an investor's visa if you do not have previous management experience. Your managerial skills in your home country will be analyzed in detail before the immigration service can grant you an investor visa.

Permanent business talent visas

The Business Talent visa is designed for experienced and high-caliber business owners who are willing to invest in a new or existing Australian business. This visa has two streams: the Significant Business History stream and the Venture Capital Entrepreneur stream. The first stream is for experienced business owners who have a successful record of managing and growing businesses, while the latter is for people who have obtained venture capital funding in Australia.

Eligibility

Eligibility for the visa depends on meeting the following conditions:

Length of stay

The Business Talent visa allows you to stay in Australia indefinitely. This is a permanent visa, which means that once it is granted, you can live, work and study in Australia for as long as you like. You may also be eligible to apply for Australian citizenship after meeting the eligibility criteria.

Costs

The application costs for the Business Talent visa are AUD 4,045 for the primary applicant, and it also includes an additional applicant charge for family members: AUD 2,025 for each adult and AUD 1,010 for each child under 18 years of age.

Application steps

As with the business innovation visa, applying for the business talent visa is a two-step process:

Starting and doing business in Australia

Once you've got your visa, all you have to do is start and run a business in Australia. But don't worry; there is lots of advice and guidance on how to do this, and we've collated some of it here for you.

Australia is generally considered a welcoming place to do business it was ranked 14th out of 190 countries surveyed by the World Bank in terms of ease of doing business.

What kind of business?

As with starting your business anywhere, a huge part of the process is researching the market and industry and figuring out what might lead to success.

Depending on what visa you were granted, you may already be familiar with your sector. However, studying consumer behavior, identifying competitors, understanding regulations, and determining demand and supply, are all key factors to your business's success. It is always a good idea to start a business in an industry you understand, but, in general, promising areas to start a business in Australia include technology and IT services, renewable energy and sustainability, education and training, health and medical services, food and hospitality, construction and real estate development, professional services (consulting, accounting, legal, etc.), e-commerce and online retail, creative industries (design, advertising, film, etc.), and manufacturing and engineering.

Business structure

Choosing a business structure is another key step in the process. Make sure to select a business structure that suits your business needs and complies with Australian laws. In Australia, the options include:

Regulations, laws and taxes

As an expat looking to start a business in Australia, there are several key business regulations and laws to be aware of and taxes to register for. Here are some of the most important ones:

Hiring employees

Once you've successfully launched your business in Australia, the next step is finding the right employees to support its growth.

First off, you've got to assess what your staffing needs are. Determine the roles and skills required for your business and create a clear picture of the type of employees you need. After that, you must write detailed job descriptions that clearly outline the responsibilities, qualifications, and expectations for each position. This will help attract suitable candidates and clarify responsibilities within the company.

Next, spread the word about your job openings through online job boards, social media platforms, industry-specific websites, and local job agencies. Make sure your advertisements comply with anti-discrimination laws. Depending on what kind of business you are starting, you may advertise locally or nationally, head hunt your ideal employees or put a sign up in the window.

Once the applications come in, it's your job to review them, select the most promising candidate and conduct interviews to assess their qualifications, skills, and cultural fit. Before extending offers of employment, consider conducting reference checks to validate their credentials.

Support and guidance

There are several support programs available for expat entrepreneurs in Australia and even for citizens and permanent residents. Below are some examples:

In addition to federal programs, state and territory government programs each have their own range of support programs for businesses, including funding, advice, and networking opportunities

Industry-specific support programs can also offer you support and networking opportunities, depending on which sector you are operating in. For instance, there is the Australian Technology Showcase for technology companies or the Australian Tourism Industry Council for tourism businesses.

Important:

For more detailed information on all aspects of business in Australia, we recommend consulting both the Australian Taxation Office website and the Australian Government Business website. Requirements and regulations do change, and government-run websites will be the most up-to-date source of information.


Article written by expat.com
Last update on 03 June 2023 20:57:01
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