Doing business

Australia

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sole trader No minimum capital.	1 person The liability of the sole trader is unlimited.
Private or Proprietary Company No minimum capital.	One or more The partners' liability is limited to the amount of capital contributed.
Public Company No minimum capital.	One or more The partners' liability is limited to the amount of capital contributed.
Partnership No minimum capital.	Two or more Their liability is joint and unlimited.
Limited Partnership No minimum capital.	At least one general partner and one limited partner Unlimited for general partner, limited to capital for limited partner

Business setup procedures

Setting up a company	Australia	OECD
Procedures (number)	2.0	5.6
Time (days)	2.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Australia.
Australia Business Register
The competent organization: Australian Security and Investment Commission (ASIC)

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	46,722	25,716	32,472
FDI stock (millions USD)	305,518.8	425,427.1	508,122.8
Performance Index*, ranking on 141 economies	61	69	-
Potential Index**, ranking on 141 economies	21	-	-
Number of Greenfield investments***	239	252	-
FDI inwards (in % of GFCF****)	15.3	7.2	-
FDI stock (in % of GDP)	29.5	33.5	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Australia

Strong points: The customary Australian dynamism, its economic robustness, its strong growth, stable and juridically reassuring business environment and position as a practical access platform for certain markets, like New Zealand and the Pacific islands, make this country a choice target for establishment.
Weak points: Reduced competition in some sectors can limit returns on scale. Lack of investment in transport and telecommunication infrastructures sometimes slows down growth in some sectors.
Government measures to motivate or restrict FDI: Foreign companies get assistance, especially for productive investment, R&D, professional training and job creation. For many years, the amount of administrative formalities for setting up foreign companies has been reduced.
Bilateral investment conventions signed by Australia: Yes

Procedures relative to foreign investment

Freedom of establishment: Yes
Acquisition of holdings: There is a mixed regime which has been made more flexible since it was set up in 1975. However, the purchase of a local firm by a foreign company can always be refused by the controlling authority, on the grounds that it would be contrary to national interests.
Consult the FIRB (Foreign Investment Review Board) website.
Obligation to declare: The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up. Some investments must be declared to the FIRB.
Acquisitions, substantiel acquisitions of holdings, and taking control of Australian companies whose assets are valued at more than 50 million AUD; the creation or setting up of a new business when it goes over 10 million AUD (over 100 million AUD of investment the FIRB will make a detailed study); direct investments carried out by foreign governments must be declared.
Competent organization for the declaration: FIRB
Requests for specific authorizations: The media, the banking sector, air transport and mining concessions are subject to restrictions; the FIRB can provide details.

Finding assistance for further information

Investment aid agency: Invest Australia
Invest Victoria
Other useful resources: http://www.deloitte.com/view/en_GX/global/services/tax/cross-border-tax/international-tax/taxation-and-investment-guides/index.htm
">International Tax and Business Guide