How to Do Business in Australia

Australia is an attractive and profitable market for American enterprises, since there are very few language, cultural and political barriers to overcome in order to do business. With little difficulty entering the country and a Free Tariff agreement between the countries, Australia may very well be that market you've been searching for all along. However, there are a few important points to keep in mind if you plan to do business in Australia.

Instructions

1. Determine your business structure. This decision will determine what kind of licenses and overall procedures you will need to follow. Your business can be classified as Sole Trader, Partnership, Trust or Company.

2. Register your company with the Australian Securities and Investment Commission (see Resources below). There are several different documents that will need to be filed depending on what kind of business you are planning to conduct within the country. You will also need to provide certain documentation and pay a lodgment fee to the commission before you're able to open up shop.

3. Register the name of your business. This is only required if the name under which the actually trading will be done is different from the company name that is registered with the Australian Securities and Investment Commission. You must file the appropriate papers in each territory where you plan to do business.

4. Apply for a Tax File Number (TFN). This is equivalent to a Social Security Number in the States. You'll need this in order to receive and report income in Australia. You can apply for a TFN through the Australian Tax Office (see Resources below).

5. Apply for an Australian Business Number (ABN). This is possibly the most important element when you are trying to do business in Australia. This number is reported on all of your invoices, payments, adjustments and tax information. If this 11 digit number is not provided when dealing with another business, then the paying party may retain 46.5 percent of their payment for tax purposes. You can apply online through the Government Business Initiative (see Resources below).

6. Learn about the laws and regulations that deal with hiring Australian employees. You can find tons of information as well as links to paperwork and phone numbers to ask for help on the Australian Government Initiative website (see Resources below).

7. Register for the Goods and Services Tax (GST). Businesses with an annual profit of $50 thousand or more are required to register for the GST, but businesses with a smaller income may voluntarily register. You can find more information about the GST as well as other types of taxation and registration requirements on the Australian Government Initiative Registration and Licenses page (see Resources below).

8. Acquire the appropriate licenses. Most businesses will require a specific license under which it will operate. Each state or territory will govern these licenses separately from the Australian federal government, though there are many guidelines passed down from this larger governing body. Explore the database at the Business License Info page on the Australian Government Initiative website to find out what is required for your business (see Resources below).

9. Learn about the intellectual property rights in Australia. Some laws are slightly different from those in the U.S., so you'll want to at least explore those that pertain directly to your business. Check out the Australian Government's Smart Start website for detailed information and registration forms (see Resources below).

Tips & Warnings

• Online businesses can avoid much of the paperwork as well as overhead expenses of traditional businesses. Look into registering a domain with the .au Domain Administration Ltd (auDA) or with ICANN for global domain names (see Resources below).

• Registering for Australian Intellectual Property Rights does not automatically protect you internationally. You'll need to go through a separate process to register for international IP rights.

Resources

• ASIC to register your company
• Australian Tax Office for information and tax forms for businesses
• Australian Business Initiative ABN registration
• Australian Government Initiative for employee information
• Australian Government Initiative for registration and licenses
• Australian government site for business license information
• Smart Start IP information and registration
• auDA's list of accredited domain name registrars
• ICANN list of accredited domain name registrars