Australia is a great place to start a business because of several reasons. Australia is also one of the easiest places in the world to execute the business. According to the ranking published by the World Bank in their report ease of doing business in different countries has placed Australia in 14th position in the year 2020. Thus, to start a business in Australia one needs to register company in Australia and also obtain business license in Australia for execution of business. Australia is one of the amazing economies having a population of more than 20 million people. Thus, Australia comes in 5th position when comparing economies of the world, ranked fourth for gaining credit, ranked sixth for enforcing contracts, and ranked seventh for starting a business. Thus, an individual willing to work in such a dynamic country with developed infrastructure and economics the business license must be obtained.
The minimal restriction on business activities such as imports of goods and services makes it a preferable place to do business. The other factors which make it suitable for conducting business in Australia are there highly educated, and skilled workforce with abundant and diverse resources attracting a high level of foreign investments in the country. Australian business licenses can be obtained by complying with the strong legal framework protecting property rights and Australia’s robust rule of law minimizing corruption. Along with this, the country is also internationally competitive in financial and insurance services, technological advancements, and manufacturing goods.
Australia also has some historical connections with various nations such as the united nations, a united kingdom which makes it much more powerful and preferable for businesses to operate, The competitive advantage which Australia has because of lying in the same time zone as Japan, China, and booming southeastern Asian countries, it provides a strategic location for operations for European or US companies that want to access markets in Asia.
Australia with its stable political environment supports a strong judicial system that operates independently and impartially. The country plays an active role in the World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), and the G20 with GDP in 2019 was at A$1.89 trillion, and many global trade forums. Along with international connections, the country also has free trade agreements with major regional and global economies and the domestic economy enjoys the support of a sophisticated and diverse consumer market with a large and wealthy middle class. These international connections help the country to grow and develop business present in the economy. Tetra Consultants can help you with the understanding and knowledge of various business growth strategies and measures which can be beneficial for business growth and expansion.
A Step-by-Step Guide to Obtaining a Business License in Australia
There are various steps involved while registering for a business license in Australia. The steps are as follows:-
Step 1: Form your business entity
- The business first needs to form and build a business for whose name under which the business license would be registered. It is always advised to establish a business structure and business name before applying for the license. In this way, the chances of reapplying and amending of license can be eliminated. Some of the common business structure includes sole proprietorship, general partnership, limited liability partnership, corporation, and non-profit organization.
Step 2: Choosing the license to be applied
- Business license in Australia are the company’s legal registration that permits the business owners to operate within the industry and jurisdiction. These business license in Australia help the governmental authorities to collect revenue and regulate the companies. Non-compliance with such licenses can have a litany of consequences including fines, late fees, penalties, and denial of operation. Therefore, there it is essential to specify which licenses and permits are required for commencing a business in Australia. The license requirements may vary depending on the type of business and the structure such as businesses like restaurants and daycare facilities require additional business licenses. Thus, putting all together all the business requirements may depend on the business industry as well as the business structure so, the business license depends on the industry and structure of the business. Business license includes business operating license, doing business as (DBA) license or permit, planning and zoning permits, building and home occupation permits, and many more licenses varying on the business industry.
Step 3: Compiling appropriate document
- Each application needs a different set of documents which are needed to be paid attention. The documents which are needed depend on the kind of license one is applying for. The documents must be complied with and collected in the specific regulations enforced by the appropriate governmental authority. Most of the business license in Australia require documents such as a description of the business including the primary activity and physical premises, copies of corporate records including article of incorporation and corporate bylaws, proof of state or local tax status, list of ownerships, and filing fee to the government which may vary between few dollars for local permit and hundreds of dollars to thousands of dollars if applied for a business license for state-level licenses. Every state requires businesses to register themselves and submit accept service of process and other documents.
Step 4: Fill and submit the application
- Once all the appropriate documents are complied with and collected the business owner may fill the application and submit that application. Each application process is different and may vary depending on the governmental agency you are approaching. According to Gilmer “preparing applications and accompanying with the documents is a small step” It is said because every governmental agency has its unique way of processing ad filing applications. These forms must be signed by multiple parties or must be notarized before submission. After compiling the documents all such documents were submitted online.
Step 5: Wait for the approval
- The business after applying for the licenses need to wait to hear back from the appropriate governmental agencies for the confirmation of the licenses. After applying for these documents the agencies may get back to you within weeks or months. The business license in Australia might take a lot of time to be approved. Thus, it is advised to wait for the licences for months.
- Australia has a great opportunity and an amazing place to conduct business for several reasons. These reasons include an open market because of which Australian authorities have put minimum restrictions, a strong and steady economy which enhance the economic position of the country, a business-friendly environment which offers competitive tax rate and generous government incentive, and rich natural resources which strengthens the economy. However, businesses might come across complicated regulations and obscure tax processes that might seem difficult. Thus, it is important to weigh the advantages and disadvantages of executing business in Australia and also obtaining business licenses in Australia.
Contact us to know more about how to register a company and obtain business license in Australia and our team of experts will revert within the next 24 hours.. Tetra Consultants are always available to provide their clients with comprehensive incorporation services which includes various ancillary services such as offshore financial licenses, corporate bank account opening, international trademark registration and many more services. Our dedicated and knowledgeable team can handle the clients projects effectively and efficiently.