Setting up a Company in Australia: A Step-by-Step Guide 

When it comes to starting a business in Australia, setting up a company is a popular and practical choice for many entrepreneurs. Whether you are an Australian resident or a non-resident, this Pty Ltd company structure is widely favoured for its simplicity and flexibility and the limited liability structure.

At Perth Legal Docs, we specialise in making the company setup process seamless and efficient. As ASIC agents connected to ASIC's API, we offer online company registration services, streamlining the process for you. Additionally, we handle essential matters with ASIC, including ABN registrations and other necessary documentation.

Our user-friendly software enables you to establish a company in Australia at any time. Whether you're setting up a new business or need to register a corporate trustee for a trust, our services take care of this. That's why we are the preferred choice for so many accountants.

Understanding Tax Implications

Taxation is a crucial aspect of running a company in Australia. For companies with an annual turnover under $2 million, the tax rate is 28.5% of the net income. Once the turnover exceeds this threshold, the tax rate becomes 30%. If you are a non-resident managing an Australian business from overseas, you can often reduce taxable profits by making payments to your offshore business for management and other services. However, it's essential to seek professional advice to ensure these arrangements comply with tax regulations.

Insight into Goods and Services Tax (GST)

The Goods and Services Tax (GST) in Australia is set at 10%. Businesses typically include this tax in the sale price and later pass it on to the Australian Taxation Office (ATO). To reduce the amount passed on to the ATO, businesses can account for the GST included in the purchase price of goods and services necessary for their operations. Most businesses submit quarterly GST returns to the ATO.

Shareholders and Directors: Eligibility and Requirements

Whether you are an individual or a company, you can own 100% of the shares in an Australian company. It is crucial to remember that at least one director must reside in Australia to ensure local representation and compliance with Australian laws, including the Corporations Act.

Registered Office and Business Location

When you setup a company in Australia you must have a registered office and a principal place of business. It's important to note that these addresses cannot be post office boxes; they must be physical locations. The good news is that you can operate your business anywhere in Australia, regardless of the registered company office's location.

Setting Up a Bank Account for Your Company

Once your company is successfully registered in Australia, the next critical step is to open a bank account. Having an Australian bank account is essential for managing your company's finances, conducting business transactions, and ensuring smooth financial operations.

At Perth Legal Docs, we provide comprehensive bank kits for your bank account setup process. Our bank kits include all the necessary documents and information required to open an Australian bank account for your company.

In most cases, banks in Australia require company directors or account signatories to verify their identity at a branch within the country.

Summary

Do you need to setup a company in Australia? Well, Perth Legal Docs’ online software is linked to ASIC’s database, so your company is registered instantly. All you need to do is complete the online forms and enter the requisite details, make a payment and your documents are issued instantly.