Setting up a business overseas is never easy. It comprises basic compliance issues including legal and financial matters to far much sophisticated dimensions like culture and language. This article, however, is geared at the Hong Kong companies setting up operations in Australia.
Consequently, we will look at the reasons for conducting business to Australia, setting up a corporation, and the most crucial items that need attention during this period. For a smaller business owner looking to start operations in the Australian market or multinational corporations seeking to exploit these new markets, this article will provide valuable information.
The country has been appealing to foreign firms in that it ensures peace, an efficient economy, quality manpower, and geographical location. It has a population that exceeds 25 million with a solid consumer market, meaning that there are many avenues for businesses wishing to grow. Besides, Australia has Free Trade Agreements with some of the big economies such as the US, China, Japan, and South Korea and therefore is a great place to operate for businesses targeting these markets.
The process of setting up a company in Australia is straightforward and can be done entirely online. The key steps involved are as follows:
Choose your business structure: In Australia, there exists different types of business structures which include sole proprietorship, partnership, company and trust. Despite this, every structure has its strengths and weaknesses; therefore you need to select the one that fits your business the most.
Register your company: Afterwards, your company will undergo registration by ASIC. In particular, you need to outline your desired company name, Australian registered office, names of the directors and the shareholders. ABN Lookup is the public view of the Australian Business Register (ABR) and it is provided free of charge. This is publicly available information that is used by businesses during registration to an Australian Business Number (ABN).
Obtain necessary licenses and permits: To operate lawfully in Australia, you need some licenses and permits depending on the industry you are operating in. For instance, food safety laws will have to be observed when you set up this business as it can deal with food production.
Set up a business bank account: This is why it is crucial when one desires to do business in this country he/she must open a local Australian bank account. Therefore, it would be easier for you to operate on your finances and make payments in AUD.
Register for taxes: All companies trading in Australia are required to register with the Australian taxation office (ATO) for taxation purposes. Thus, it implies that in case your turnover is higher than what is specified then you will need to request for an ABN and GST.
Familiarize yourself with Australian laws and regulations: One should understand the law requirements and regulations in Australia regarding their business operations. Such may include occupational safety acts, labor law as well as consumer protection laws.
Read Setting Up a Company in Australia for detailed insights on the essential steps and expert tips for setting up your business in Australia.
Research the market: Carry out extensive studies about the Australian market so as to identify customer preferences, competitors, and other market indicators. This will enable you to customize your products to be fit for a local market.
Understand cultural differences: Like any other global expansion, one should appreciate the culture difference between Hong Kong and Australia. This encompasses business manners, communicative styles, and sociocultural norms.
Seek professional advice: It is a good thing to look for local professionals to guide you during the establishment of a firm in a foreign land. These may include lawyers, accountants, and business consultants that can contribute to the provision of useful insights and advice.
Have a solid business plan: Any company that plans to penetrate the Australian market should have a carefully crafted business plan. It should include your objectives, target market, financial projections, and growth strategy.
Company public officer: Compliance with directorship requirements, appointment of a professional company secretary and timely selection of a public officer are very important measures. Such positions are essential in compliance with the regulations, governance, and operational effectiveness, thus influencing the performance and legality of the company under the Australian regime. Read Structuring Your Company in Australia: A Guide for Business Owners for more details.
While entering the Australian market for your business venture may yield profit, careful deliberations are required. Following the above steps and bearing in mind these issues should help speed up the process so that your company is prepared to trade within the Australian market. It is important to seek advice from professionals and keep up with local laws so as to make expansion an easy and successful process.
All entities in Hong Kong under the registrar of Companies will be required to use a Unique Business Identifier (UBI) on the Company Registry. Effective 27th December, 2023, an additional of 117 specified forms will be revised to align with this new requirement.
UBI has become adopted in many other economies around the globe for unique identification of legal entities involved in different commercial transactions like payments or regulatory interactions among others. It makes it possible for various departments of government as well as businesses to communicate and exchange information using one identifier, thus mitigating the risks arising from the use of different identifiers when trying to identify the same entity. UBI provides a chance for government to improve on its public service delivery capability, while it also offers a better way of handling institutions for regulation purposes.
Hong Kong VisaThe UBI will be implemented by the Companies Registry in two phases: phase one of the limited partnership funds, which started from the 1st November 2021, and the second, limited companies and all others, which commences simultaneously with the launch of the Companies Registry’s Integrated Companies Registry Information System on 27th December.
Phase Two: Scheduled for December 27, 2023, Phase Two coincides with the launch of the revamped Integrated Companies Registry Information System (“Revamped ICRIS”). It extends UBI to various entities, including companies incorporated under the Companies Ordinance, open-ended fund companies, limited partnerships, registered trustees corporations, and other entities under different Ordinances.
For entities with a Business Registration Number (BRN): Entities with a BRN, which consists of the first eight digits of the Business Registration Certificate number issued by the Inland Revenue Department’s Business Registration Office, the BRN becomes the UBI.
Entities without a BRN: Such as those exempted from registration under the Business Registration Ordinance, receive a dummy BRN based on their previous Company Number, CR Number, or Company Registration Number. Here’s how it works:
Local Companies without a BRN: A “C” is added as the prefix for the dummy BRN. If the converted number is less than eight digits, “zeros” are added to ensure a consistent format. For instance, a local company with a CR Number “12345” gets a dummy BRN as “C0012345.”
Forms NNC1, NNC1G, NNC5 and NN1 have a shorter transitional period of four weeks i.e. only new forms will be accepted from 25 January 2024 onwards
After the implementation of the Revamped ICRIS (on December 27, 2023), companies or entities may acquire evidence of their new identification number change from a Companies Registry Information Sheet. An image record of this information sheet can be obtained through the Electronic Search Services (ESS) provided in the e-Services portal of new Registry. This can be done using the “Quick Search > CR/BRN Mapping” function provided in the Electronic Search Services of the Companies Registry. For relevant charges, you refer to “Price Guide to Main Services” on the Registry’s website.
After the implementation of the Revamped ICRIS (on December 27, 2023), companies or entities may acquire evidence of their new identification number change from a Companies Registry Information Sheet. An image record of this information sheet can be obtained through the Electronic Search Services (ESS) provided in the e-Services portal of new Registry. This can be done using the “Quick Search > CR/BRN Mapping” function provided in the Electronic Search Services of the Companies Registry. For relevant charges, you refer to “Price Guide to Main Services” on the Registry’s website.
In addition to the Information Sheet, you can also find the corresponding Business Registration Number (BRN) of a company or entity by using the existing Company Number, CR Number, or Company Registration Number.