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Starting a business in Australia as a foreigner is doable. You can start a business in Australia as a foreigner but only when you complete all it requires. For instance, if you want start and run a business in Australia as a foreigner you’ll need a specific work visa. Learn how to get the right visa for you and your Business.
If you are Starting a business in Australia as a foreigner you must note that it will cost you money and time and this is further determined by the nature of the business. The cost will vary depending on the type of business you’d like to run and the supplies and licenses you need. At daily4mative we have prepared some good resourceful guide for you to use as checklist of what to do but before then we will answer some confusing questions which will help you understand what’s involved. Read on below to learn more.
How much does it cost to start a business in Australia?
On average, Australians can spend anywhere between $3,000 – $5,000 on starting their small business. Depending on the business structure and industry, some small business owners are paying up to $10,000.
Is it easy to start a business in Australia?
Some successful foreigners who started business in Australia said it was easier to start a business in Australia than in many other parts of the world. “According to the World Bank it takes less than three days to complete the formal processes, compared to more than eight days in comparable countries,”. Now lets go deeper.
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How to Start a Business in Australia
1. Choose your business structure.
In Australia there are 4 business structure. We will explain this structures although you may have heard about them. They include Sole trader, Company, Partnership and Trust.
- Sole trader: A sole trader is a self-employed person who owns and runs their own business as an individual.
- Company: A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals.
- Partnership: A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations.
- Trust: A trust is a legal relationship in which the owner of property gives it to another person or entity who must keep and use it solely for a third party’s benefit.
2. Choose a business type you will like to start in Australia
By business type we mean either running your business as follows
- Online Business: Where you sell your products online with the help of social media and online marketplace like amazon, etc.
- Franchise: A franchise is a type of retail business in which an individual or group is granted the right to market a company’s goods or services within a certain territory. In Franchise business the owner of a business system (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor’s business system.
- Independent Contractor: An independent contractor is a self-employed person, that is, a consultant, lawyer, accountant, engineer or any other person who provides services to other organization for a fee. Common law principles further define independent contractor status by method of payment.
3. Apply for an ABN (Australian Business Number) and register your business name.
An Australian business number (ABN) makes it easier to keep track of business transactions for tax purposes. It is compulsory for businesses with a GST turnover of $75,000 or more to have an ABN and to be registered for GST. Even though you can start your business without an ABN, its compulsory if you hit the $75k mark and are then required to register for GST. The only issue with not registering is that the payer may be required to withhold PAYG for non disclosure of ABN.
4. Register your domain name.
After successfully applying for ABN then you are qualified to register your domain name. This is important as you can only get a .com.au address if you’re a registered Australian business. If you are in Adelaide, you can apply for a cool $20,000 Small Business Development Fund here.
To buy or register a domain name in Australia
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- Check the availability of your domain name.
- Choose a domain name.
- Use the public WHOIS service to check its availability.
- Check the eligibility of your domain name. Different criteria apply for the various types of domain spaces.
- Register your domain name.
With the above we have come to the conclusion on this guide and we believe you learned How to start a business in Australia as a foreigner.
