Wise Personal vs Wise Business: Understand the Difference
Wise is a financial technology company focused on global money transfers that offers two different types of accounts: a personal account and a business...
Australia is a super popular place for UK citizens to live, work, study, travel and retire - but what about starting a small business in Australia? If you’re a UK entrepreneur, Australia’s close relationship with the UK, and its status as a Commonwealth country - as well as the huge number of business opportunities - can be an attractive proposition.
This guide walks through how you can start a business in Australia as a UK citizen. We’ll also touch on Wise Business as the ideal solution for international businesses which offers ways to hold and exchange AUD and GBP with low fees and the mid-market exchange rate1, and Australian account details for receiving payments with no extra charge.
No matter what type of business you’re hoping to establish in Australia, you’ll need to start by getting a visa. This is the biggest hurdle of the entire process, but there are a couple of options available to you as a non-resident.
The business innovation and investment visa - entrepreneur stream2 - would allow you and your family to enter Australia for up to 5 years, with the option to move to a permanent visa if you meet certain requirements. The visa allows you to start your own business, in most sectors - although there are a few prohibited options, such as buying an existing franchise.
The steps you need to take to apply for this visa include:
- Submit an expression of interest in the visa
- Get nominated by a state or territory, and be invited to apply
- Gather the required documents which include ID, and business information, proof of your English language skills and a police certificate showing you’re of good character
- Make your application and pay the required fee
- Await the outcome of your application - once a decision has been made you’ll be notified
Another option is the business talent visa class3 which has 2 streams based on either having a history of successfully running companies or significant local funding in Australia. In both cases, you’re required to have a lot of money behind you to invest - but the visa is permanent, making this an attractive option if available to you.
To apply under the significant business history stream you’ll usually need:
Under the venture capital stream you need to have at least 1 million AUD in funding from a local Australian venture capital company. In both cases you still need to be invited to apply as in the entrepreneur visa type - so do read all the details carefully before you decide which visa option will work best for you.
Once your visa is taken care of, you can choose from any of the four most common business structures in Australia: sole trader, company, partnership, or trust4. Before deciding what structure is best, you may want to seek advice from a business consultant, lawyer, or accountant.
Once you know what type of business entity you need you can follow the step by step process to start a business in Australia5 from the UK, including getting an Australian business registration number6. Here are a couple of the most important steps you need to take:
After you’ve chosen your business structure, you’ll need to register for an Australian Business Number (ABN)7.
With an ABN in place, you’ll be able to:
- Confirm your business identity for the purpose of ordering and invoicing
- Avoid ‘Pay As You Go’ tax on payments received
- Claim Goods and Services Tax credits
- Purchase an Australian domain name
You’ve got a couple of different options when it comes to registering your Australian business:
A PSP will handle the entire registration process for your company for a fee. Many PSPs in Australia use software with direct access to ASIC’s systems which increases the likelihood that your application is processed swiftly with minimal intervention. It’s best to conduct your own preliminary research before choosing a firm.
You can also register your company directly by filling out Form 201- Application for Registration as an Australian Company8 and sending it to the ASIC. The form must be sent with the required fees (paid by check or money order) in order to be processed.
Once your application is processed, the ASIC will:
- Provide you with an ACN (Australian Company Number) which then allows you to apply for an ABN (Australian Business Number) if necessary
- Send you a certificate of registration
- Give you a corporate key9 for managing your company’s online account.
To learn more about the process, you can use ASIC’s checklist for registering a company to ensure you’ve taken all the correct steps for completing your registration.
Here’s how to register a Wise Business account in just a few simple steps:
- Download the Wise app or head to the Wise desktop site
- Tap Register and follow the prompts to apply for a business account
- Add your personal and contact information
- Upload the documents needed which are detailed online and in this Wise Business account requirements guide
- Pay the one time fee to register your account and get a linked payment card if you need one
- Once your account is verified you can start transacting - your account will be live in the Wise app, your physical card will be posted to you, and you can get a digital card right away for mobile spending
Australia presents an enormous opportunity for many different business types, as well as a wonderful place to live. Use this guide to start your planning - and remember to take a look at Wise Business as a good way to manage your money across both GBP and AUD, with low fees and great exchange rates.
Sources used in the article:
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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