Fintech company in Australia 2021
Financial technology or fintech is an industry including companies that use technology and innovation to compete with traditional banks and the intermediaries in this market. The industry includes startups associated with the introduction of new technologies, as well as large companies that seek to improve the quality of their services. To open a fintech company in Australia in 2021, contact our experts at IT-OFFSHORE.
Financial Sector Development in Australia
Australia can be considered a strong jurisdiction in terms of financial sector development and adoption of new technologies. The state government supports innovation by attracting investment from overseas.
Technology in finance began to actively develop in the middle of the last century, as the first bank cards and ATMs appeared during this period. With the appearance of computers and the Internet, they became more widespread and attracted new users to the industry. Australia is one of the first states to pay a lot of attention to the development of fintech.
Throughout the last several years the number of companies working in this sphere has increased several times, and a lot of firms are developing in the sphere of money management. The active development of fintech in Australia contributes to the efficiency of the banking sector. Through new technologies, one can expand the number of banking products and improve competitiveness. The increase in the growth of fintech activity indicates that this industry is successfully developing.
Nuances of company registration
Registering a fintech company in Australia in 2021 is relevant because this industry is actively developing. When opening a company, it is possible to get support from the government and have access to large markets. Each line of business has its own specifics.
Beforehand, it is necessary to choose a suitable type of company activity. Competition in the country is high, so in order for the firm to develop, it is necessary to analyze the market for the service offered. It is desirable to predict the tax burden in advance in advance.
It is necessary to choose the most suitable location for the office. There are conditions regarding the residency of directors in the country. At least one of them must be a resident of the state. It is allowed to use nominal services.
What documents are necessary
All businesses in the country must be registered with ASIC. To register a company you need to prepare information to identify all members of the company and the name of the company, a description of the structure, and the type of activity.
After all necessary documents and information are collected, the registration process may begin. It includes several stages. Names are checked beforehand, then forms of documents are prepared for submission to the Register, and the registration process is carried out. CAN and ABN numbers are issued.
The nuances of taxation
Peculiarities of taxation vary depending on whether the company is a resident or not. The normal corporate income tax rate is 30%. In some cases, it can be reduced to 25% if the firm's turnover is less than $35 million.
Dividends that are distributed to non-resident shareholders are taxed at a rate of 0 percent, provided that the firm has paid all taxes. Otherwise, the rate may increase to 30%. The amount of VAT for most goods is 10%. All firms registered in Australia must prepare financial statements. Documents are submitted annually by the due date.
Advantages of starting a fintech company
One of the main advantages for businesspeople is the stability of the economy. The risk for investors is extremely low. The country's economy has been growing for 28 consecutive years. In addition, Australia is considered a reliable partner for trade and investment. It has trade relations with many major countries.
The country has a well-developed fintech sector; in addition, there are other areas that are attractive for creating a business or investing in a business. It is possible to register a company in a short period of time, and many businesses, including those related to financial technology, are actively supported by the government.