Starting a business in Australia

Main types of Australian companies:

1. Proprietary Limited Company (Pty Ltd)

• The most common form of company, with the number of shareholders limited to 50 and shares cannot be issued to the public.

• The company's shareholders have limited liability and are only responsible for the amount of their capital contribution to the company.

2. Public Company, Ltd

• Can issue shares publicly on the stock market, suitable for larger enterprises.

• No limit on the number of shareholders, and public financial reports are required.

3. Branch of a Foreign Company

• Foreign companies can choose to set up branches in Australia to conduct multinational operations.

• The branch must be registered in Australia and comply with local laws and regulations.

4. Sole Trader

• Simple operation, owned by one person, who bears all responsibilities and risks.

Advantages of setting up an Australian company:

• Strong trade networks: Australia has signed a number of free trade agreements (FTAs), providing access to Asia-Pacific markets.

• Stable legal and political framework: Australia protects business interests with a transparent and predictable legal system.

• Efficient infrastructure: including financial, technological and transportation facilities, suitable for business expansion of all types of enterprises.

Requirements for establishing a company:

1. Directors and shareholders

• At least one Australian resident director is required, and the number of shareholders varies depending on the type of company.

• Shareholders can be natural persons or legal entities and do not need to be Australian citizens.

2. Registered capital

• No minimum capital requirement, but detailed capital structure is required.

3. Registered office address

• The company must have a registered office address in Australia.

4. Company Secretary

• Although not mandatory, it is recommended that a company appoint a company secretary to handle compliance matters.