Tips for Starting a Business in Australia

In recent years, Israeli companies have discovered the advantages of establishing business operations in Australia, while Australia has recognized Israel's cyber and technological capabilities. These developments, along with the tax treaty that came into effect in 2020, have created excellent business opportunities to expand cooperation between the two countries.

The experts at Lynden Group, specializing in providing business development and accounting services to Israeli companies looking to establish a presence in Australia, present valuable tips for opening a company or launching business activities in Australia.

Many believe that establishing a business operation in a foreign country involves difficulties and lengthy processes, but Lynden’s experts explain: “It’s not a complicated process, but you need the right professionals by your side to guide you safely. Additionally, you must adhere to strict work methods while complying with regulatory laws and authority requirements.”

Tip 1: It's All About Thorough Feasibility

The feasibility stage is the most critical foundation in the process of setting up a business operation in Australia. This feasibility must include preliminary market research, conducting a market survey, comparison, information gathering, and preparing a stable foundation that will yield fruitful results in the future.

Tip 2: Don’t Skip the Business Development Stage and Creating a Business Plan

When approaching a director (more on the importance of this later) for the purpose of establishing business operations in Australia, you’ll need to present a business plan. It’s recommended to do this in advance and not wait until the last minute. Business development should include, among other things, building growth strategies essential for the company’s future financial success and profitability.

Tip 3: Director Services

In Australia, you cannot open a limited liability company without appointing a local Australian director (resident). The director’s role is to be responsible for the company’s activities and ensure it operates correctly and in accordance with regulatory authority requirements. If there is a risk of bankruptcy or improper conduct, they must alert the authorities. It’s worth noting that you can appoint a local partner or a representative from a local accounting/law firm as a director.

Tip 4: Establishing Hierarchy as a Milestone

As part of the regulation in Australia, to establish business operations, the company must define the roles of its owners in advance. This is essential for share distribution, setting up bylaws and policies, and drafting a shareholder agreement. The role definitions must be clear and meet authority requirements.

Tip 5: Building a Financial Plan in Line with the Tax Treaty

It’s important to understand that in Australia, many expenses can be claimed as deductible business expenses. Therefore, it’s crucial to be well-versed in tax laws and consult a local accountant at the beginning to create a proper financial plan in line with the tax treaty. As known, Israel signed a tax treaty that prevents double taxation on capital gains between the two countries. The treaty ensures that an individual’s residence allows them to receive credit for taxes paid in a non-resident country, and/or that income sourced from a non-resident country will be exempt from tax.

Establishing a stable financial framework from the start will lead to financial efficiency, maximizing profits, and minimizing tax payments.

Tip 6: Know in Advance Which Licenses Are Required

In Australia, business owners in various sectors are required to present licenses and permits based on the company’s location, nature of activities, etc. Licenses may be needed for providing certain services or products (even for professionals). Therefore, it’s advisable to prepare in advance regarding licenses and understand the requirements of the authorities.

Expanding business operations in Australia offers significant opportunities and growth potential, especially for Israeli companies seeking to enter new markets. However, success in this international environment requires thorough preparation, compliance with local regulations, and support from experienced professionals. With the guidance provided by Lynden Group, you will have a clear and solid roadmap for establishing your business activities in Australia, paving the way for long-term collaboration and growth. Feel free to book a free consultation with us.