A guide for US companies doing business in Australia
Australia has in recent years become an attractive option for US companies wanting to do business in Australia. We’re the 12th largest economy in the world, with the mining sector growing exponentially each year, the economic environment getting more stable and rich government incentives for international companies making it even easier.
As Australia’s leading Professional Employment Organisation, we talk to United States companies daily, who want to expand into Australia but don’t know the extent of what’s involved or what the barriers to entry are.
Today, we’re going to answer the common questions we get asked by US companies as a guide to help you do business with Australia and within Australia.
Can I do business in Australia?
Australia is, as much of the Asia Pacific, a pro-US market, and the barriers to entry are low. We share many of the same legal foundations as the U.S and our pragmatic business culture makes us easy to deal with. But, our tax systems, employment laws, economic and legal structures differ, so it’s wise to engage an expert in the Australian market, who’s familiar with the laws and regulations.
Do I need to register an entity in Australia to employ?
No, you don’t need an entity to employ an Australian businessman in Australia. Some US companies choose to outsource their payroll to a registered Australian entity like Australia PEO and have them pay their staff’s wages as their Employer of Record.
Can a US foreigner buy a business in Australia?
The business environment is becoming increasingly globalised, making foreign investment in the Asia Pacific far more accessible than it was 10 years ago. In fact, the US is Australia’s largest foreign investor.
Investing in a business in Australia can be a long and drawn-out process. All foreign investors, USA citizen or not, are examined under the Foreign Investment Review Board (FIRB), well before any transaction is made. Only legitimate investors who meet “national interest” will be approved. The term “national interest” holds no stringent meaning and each investment is determined circumstantially by the board.
After taking all the above into consideration, it’s always safest to gain legal advice where and when possible before doing business in Australia.
How long does it take to set up a company in Australia?
Setting up a business in Australia can take some time. If you’re a non-Australian citizen, you’ll need to obtain the correct visa by applying for it and waiting to see if the CEO of Austrade invites you to apply. If you’re are chosen to apply, then you’ll to obtain the right licenses and permits, and register your entity. More information and an overview of FIRB can be found here.
For many United States companies, this might seem like a lot of preparation required just to perform business in Australia. Many companies choose to skip this process altogether by engaging a Professional Employment Organisation in Australia who are familiar with Australian tax and employment law and who can to become their workers’ Employer of Record. This means we can have them doing business in Australia in a matter of hours, not months.
How do I do business in Australia?
For more information on how to do business in Australia without having an entity, contact Australia PEO, your partner in employment. We can help guide you through your expansion and have you up and running in a matter of hours, not months. Doing business in Australia has never been easier!