How to start a business in Australia

Australia has become a hot destination for entrepreneurs, offering a mix of warm weather, big city culture, and a supportive environment for new business owners.

As a country with an Entrepreneur Visa, you can put down roots in the country with a new business venture and in some cases bring family members along with you.

If you’re ready to make the leap, the good news is that establishing a company in Australia as a US citizen can be a straightforward process. In this blog post you’ll learn more about what types of visas are available to you, the types of business you can set up, and how to register your business down under.

Getting started: Visa requirements

Whichever type of business you’re hoping to establish in Australia, the first step will be obtaining a visa. This is arguably the most significant obstacle to overcome, but there are various options available for non-residents.

Business Innovation and Investment Visas are best for US citizens with proven business skills who want to set up a new business in Australia. There are various streams associated with this visa, meaning you have more than one way to get one.

Business Innovation stream - This stream is one of the most common options, and is for entrepreneurs looking to start or manage a business in Australia

Investor stream - The investor stream is for those who are willing to invest a minimum of ¹AUD 2.5 million

Entrepreneur stream - The entrepreneur stream is another popular option for US citizens for aspiring business owners that have a funding agreement in place to carry out a business venture in Australia

To apply for the business innovation stream, you’ll first need to receive a nomination from a state or territory government.

The steps for getting a nomination are as follows:

• Submit an Expression of Interest to the Department of Home Affairs. You can do this through their SkillSelect service.
• Wait for a state or territory to contact you to invite you to apply for a visa. (You can also reach out to state and territory governments directly to increase your chances of receiving a nomination)
• If you receive an invitation, you’re free to apply for the visa. However, please note that there are certain requirements and documents you’ll need to support your application.

If your visa application is approved, you’ll be granted a provisional visa, which is valid for five years. You can also apply to extend this provisional visa by an additional 2 years.

The provisional visa is the first step towards getting your permanent Business Innovation and Investment visa.

Choosing a business structure

Once your visa has been approved, you can choose from any of the four most common business structures in Australia:

• Sole trader
• Company
• Partnership
• Trust

Sole Trader

If you plan on going into business by yourself, a sole trader is the easiest option. In this business structure, you’re the only owner and personally liable for any debts or legal obligations.

Company

Setting up a company in Australia means creating a legal entity that’s separate from its owners or shareholders.

As the owner, you’ll have limited liability. You can choose to set up either a private or a public company, and it’s a good option if your plan is to hire employees down the line.

Partnership

In the partnership business model, you and one or more other partners assume the responsibilities of the business and are jointly liable.

You can set up either a general partnership where you share equal responsibility, or a limited partnership where one or more of the partners will have limited liability.

Trust

A trust is a legal arrangement whereby the trustee holds property or assets for beneficiaries.

There are different types of trusts, and you can use this option when your goal is to protect assets or distribute income in a tax-effective way.

Before deciding what structure is best, you may want to seek advice from a business consultant, lawyer, or accountant.

Australia’s government website has various resources available to help you understand the benefits and limitations of each Australian business type.

Becoming a legal entity

After you’ve chosen your business structure, you’ll need to register for an Australian Business Number (ABN).

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’ withholding tax on payments received from other businesses
• Claim Goods and Services Tax (GST) credits (if you’re registered for GST)
• Purchase an Australian .com.au domain name

Building your brand

The next step in the process is ensuring your chosen business name is available for registration in Australia. To find out, search the Australian Securities and Investments Commission website for company name availability.

Once you’re sure the name you’ve picked is available, contact a trademark attorney to help with the official filing.

If you are looking for help on how to name your business in Australia you can use our business name generator to brainstorm potential names.

Registering your Australian business

There are two ways to register your business in Australia:

1. Contract a private service provider (PSP) to manage your application.

A PSP will handle your entire company registration process 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 quickly with minimal intervention.

It’s advisable to carry out your own preliminary research before choosing a firm.

2. Apply directly with ASIC

You can also register your company directly through the ASIC website. This process involves filling out Form 201, submitting the relevant details, and paying the associated registration fee with credit card or BPay.

Once your application is processed, the ASIC will:

• Provide you with an ACN (Australian Company Number)
• Send you a certificate of registration
• Give you a corporate key 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.

Where to find additional resources

If you need to apply for other registrations and licenses your specific business may require, you can use the Australian Business License and Information Service’s search tool to help you get the right information for starting your company.

If you have any questions or need further help, each agency involved in the process has simple, easy-to-use web pages to guide you through the process.

Another good place to start is on the Australian Trade and Investment

Commission’s guide to setting up a business in Australia.

The Australian Securities and Investment Commission also has great online resources for entrepreneurs looking to set up in Australia.

The most robust resource available to new businesses down under, however, is business.gov.au, where you’ll find a multitude of helpful guides, how-to’s, and checklists for registering your business.

Handle international payments with ease: Discover Wise Business

As you prepare your business to go global, you need a payment solution that matches your international ambitions.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks.

With a Wise Business account, you can easily send, receive, and hold business funds in multiple currencies, without paying monthly account fees. Get local bank account details in major currencies for a one-off fee and make sending money abroad hassle-free with access to 160+ countries. That means that you can get Australian account details, even as a US citizen, and receive payments from your Australian customers without any fuss.

Open a Wise Business account online

Some key features of Wise Business include:

• Major local account details to receive international payments with ease.
• No monthly account fees, just a simpleone-off fee for account details.
• Receive payments from e-commerce platforms such asAmazon or viaStripe.
• Create invoices using the Wiseinvoice generator orinvoice templates.
• Accounting integrations, including aQuickBooks Bill Pay connection.
• Batch payment options for fast payment of up to 1,000 people.

Read the guide on how to open a Wise Business account

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Sources used :

¹ Department of home affairs

Sources last checked on 15-November- 2024.