It is not surprising many UK business owners and managers look at Australia as a fantastic location for registering their businesses. Not only is Australia seen as a land of opportunity for business, but also it is hard to ignore the incredible climate, the magnificent natural beauty, the laid-back Aussie attitude to life and the fact that the British pound still goes a long way in Australia (despite the lower conversion rates of recent years).
Talk to nearly any Brit between the winter months of October and March and they will list Australia as their number one destination for making a new ‘good weather’ life and starting and registering their new company or expanding their existing one.
This isn’t just a pipe dream for business owners and managers in the UK, as it is possible for a UK citizen to legally register a business in Australia. The UK and Australia are active trade partners and in fact recently ramped up their trading partnership with a new free trade deal in 2021. The UK is the second biggest financial investor into Australia after the USA and was responsible for 18% of the total global investment into Australia in 2020, investing $737.6 billion AUD. The UK actually increased their investment in Australia by just under 10% in the five years between 2015 and 2020 and this is likely to increase further over the next five years and beyond, following the new trade agreement between the two countries.
Along with the increased levels of co-operation between the two countries through trade agreements, the Australian government also offers resources aimed at facilitating cross-border collaboration between businesses in the two countries and helps UK businesses trade in Australia. It is well worth looking at the Austrade website (the Australian Trade and Investment Commission for international companies, and visiting them in London as a preliminary step to setting up an Australian business. They are based at Australia House, The Strand, London WC2B 4LA and can be reached by email - london@austrade.gov.au or on +44 20 7632 0000.
It is important to do as much research as possible to ensure that every opportunity for help, grants, introductions are not missed and that businesses are fully aware of all legislation and procedures for registering their British business in Australia. It is worth visiting the British Government website to read the latest news for British businesses wanting to invest in Australia. While looking at the British government websites regarding investing, exporting or doing business with Australia, it is also worth taking a look at the British Department for International Trade website.
It is easy to see why Australia represents a great opportunity for British businesses to register and establish themselves, but there are some other very important and compelling reasons why a UK business should register a company in Australia. One obvious reason is the shared history that the two countries have, which has resulted in the UK and Australia sharing their language, their legal systems, which side of the road they drive on, and the structure of their societies. While nearly all these structures were forced on Australia as a British colony, the two countries have moved apart somewhat culturally over the last century, but still have some very strong similarities and shared cultural values. Along with the similarities and the shared cultural starting point of the two countries, Australia and the UK also have similar technology and technical standards, shared communications, and business infrastructure, which makes it much easier for companies in both countries to work successfully together.
Australia is particularly attractive for British business because of its size and enormous availability of natural resources, as well as its relative remoteness which allows it to avoid many of the world’s diseases, agricultural infestations, and urban social problems. Australia has suffered far less than nearly every other country in the world, as the Covid virus has circumvented the world.
Related: Is Australia an attractive market for UK business to expand into?
The most attractive industry sectors & cities
The most obvious industry sectors for British businesses to seek opportunity by registering their business in Australia are in: agriculture, mining, oil and gas, information and communication technology, biotechnology, creative and media, marine and railways, food and drink, recreation and leisure, professional services and aerospace. Detailed information is widely available on each of these business sectors, and it is advisable to research each potential market in as much detail as possible.
It is also worth remembering that unlike the UK, which has a widely dispersed population outside of London, the vast majority of Australia’s population is concentrated in six major cities, so deciding where to establish a business is a much easier decision, than in the UK.
The six cities are Sydney in New South Wales, Melbourne in Victoria, Brisbane in Queensland, Perth in West Australia, Adelaide in South Australia and Hobart in Tasmania.
'Australianise’ products and/or services
Once a UK business decides to register their organisation in Australia, received their ABN and TFN and finalised all other legislative requirements for doing so and decided on which sector of business they are going to operate in and where they are going to be based, there are a couple more significant tasks to work through.
Even though Australia offers an exceptionally friendly commercial environment and a similar business culture to the UK, UK businesses must not assume that every UK product or service will be suitable for Australia. It is essential that products are ‘Australianised’ to meet the legal requirements of the country and are suitable for Australian consumers . Not every UK product or service is suitable for Australia and many businesses have failed by making that bold assumption. For example, Debenhams and Top Shop made practically no headway in the Australian market, despite being hugely successful British retail brands.
However, by making sure that a brand or service is properly Australianalised before it is launched and that all the necessary research is done on the place, the product, and the price, then Australia offers an enormous opportunity for UK businesses to register and launch.
Related: How to start a business in Australia Checklist – Before, During and After!
Your One Stop Shop for company registration in Australia
As a leading professional accounting and advisory firm, Azure Group have built a strong reputation on assisting UK clients set up and maintain their operations in Australia. We can provide you with a full range of advice and support to ensure that you make the right decisions from the beginning. Get in touch.
Related: Why do you need a Resident Director when registering a company in Australia?
Have you noticed our #FridayExpertTips... here's one that relates to #International
"Do you know the differences between setting up a branch or a subsidiary if you are thinking of doing business in Australia? Making the right decision can be difficult but we can help you out!”
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