Offshore registration in Australia in 2022
Australia cannot be called offshore in the literal sense of the word, but its offerings for non-residents are very attractive. A foreign company registered here only pays tax on profits earned in this country. The government is not interested in income from abroad. If a non-resident decides to work locally, the rate is 28-30%, but there is an opportunity to reduce it significantly. Today we will tell you how to register offshore in Australia in 2022.
Offshore registration in Australia: step-by-step instructions
A non-resident can open a company in Australia, but only in cooperation with local residents. There must be at least one resident on the board of directors.
Step 1. Determine the name
Make sure that the name you want to register is available. Otherwise, a business that has been incorporated before with a similar name will sue you.
Be aware that some words cannot be used without the minister's permission. For example, trust, university, chamber of commerce. The list of banned words includes names that imply an association with the Australian government, members of the British royal family.
Step 2 - Fill in the 402 form
Form 402 is the application for registration as a foreign company (this and other forms can be found on the Federal Register of Legislation site). You should provide general information about the company and how it will operate. The form must be signed by the director or local agent.
Step 3. Collect all documents
To register, you must provide the following:
- A copy of the certificate of incorporation of the legal entity;
- A copy of the articles of incorporation of the legal entity;
- Power of attorney for the local representative, etc.;
- A list of directors who reside in Australia, listing their credentials.
The government will reject applications if not all documents are collected or the paperwork is incorrect. All certificates must be translated into English and certified by a notary. To avoid problems, our company will help you gather all necessary documents for company registration in Australia in 2022.
Step 3: Send Form 402 with payment and supporting documents
Form 402 should be sent to the Australian Securities and Investments Commission. You should submit the application at once with a receipt for the fee, which is determined individually. Once it has been processed, the regulator will send you the certificate of incorporation and the Australian Registered Business Number (ARBN).
Mandatory requirements for an offshore company
A foreign company registered in Australia has obligations:
- The registered physical office must be open every business day from 10 a.m. to 4 p.m., break 12 p.m. to 2 p.m. Times can be changed if necessary by informing ASIC;
- A registered company must always have a local agent who monitors all obligations that are assigned to the business, responsible for violations and fines;
- Include your company name and ARBN in all public documents;
- Every official document must include the place of incorporation of the company, notice of limited liability;
- Once a year a foreign company must file an annual report using Form 406;
- Once a year, a financial report must be filed with ASIC, which should include a copy of the company's balance sheet, profit and loss statements, and cash flow statements. You must add a Form 405 to the paperwork;
- A foreign company with an AFS financial services license, which operates under ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186, may not file Forms FS70 and FS71, profit and loss statement, as well as balance sheet;
- A foreign company that operates under ASIC Corporations (Foreign-Controlled Company Reports) Instrument 2017/204 may not file financial statements with ASIC but must complete Form 406.
There are a few reasons why companies may choose to pursue offshore registration in Australia.
Some of these reasons include:
- Access to favorable tax regimes: Offshore registration in Australia allows companies to benefit from certain tax advantages and incentives offered by the Australian government. These incentives can include lower corporate tax rates, exemptions on certain types of income, and other tax breaks.
- Improved business credibility: Registering a company offshore in a reputable jurisdiction such as Australia can enhance the credibility and reputation of the business. This can lead to increased trust from customers, partners, and investors.
- Business expansion opportunities: Offshore registration can provide businesses with the opportunity to expand their operations and enter new markets. By registering in Australia, companies can leverage the country's strong economic and political stability, as well as its extensive network of international trade agreements.
How to incorporate a company in Australia quickly
To register an Australian offshore company, it is important to engage the services of a professional firm or consultant who specializes in corporate registration and compliance. These experts can guide businesses through the necessary legal and administrative procedures, help with tax planning, and ensure compliance with local regulations. Therefore, we recommend contacting the specialists of our company.