People interested in finding out more about the types of businesses available in Australia, as well as the steps needed to start a business in the country, have come to the right place. In this informative blog post, we will discuss all these topics and provide you with detailed information on everything you need to know about starting a business in Australia.

Australia has a strong reputation as a prosperous and progressive nation, boasting efficient government operations. Thus, the country’s administration encourages entrepreneurship among its citizens and immigrants.

The government created a website complete with valuable support material for companies in the country. It’s a great resource to use if you need additional help and advice.

In addition, Australia has a favorable procedure for starting a business that encourages people to become entrepreneurs.

Now it’s easier than ever to start a business; registering for tax can be done quickly and information about GST in Australia is straightforward. This was evidenced in our article on Tax on Products and Services – Australia GST.

The great benefits that Australia has to offer attract many Brazilians to the country. They then research which companies in Australia are best suited to their skills and preferences. Here you can find the details about it.

Companies registered in Australia vary in size, operations and structure

Before discussing the various types of businesses that can be formed in Australia, it is essential to remember that the support and experience of a professional is required to start any business. This professional, who ideally should be well-versed in business-related laws and regulations, can guide and inform business owners of the potential benefits associated with each type.

In Australia, there are many different types of businesses. The three most common types are Sole Trader, Company and Trust. If these terms were translated into Portuguese, then Trabalhador Autonomous, Empresa and Fideicomisso would be the correct terms – which are different from those used in Brazil.

Sole Trader

Self-employment is a popular choice in Australia due to its low cost and simplicity. The individual company is a great option for those who want to do business independently and need to issue invoices. It can also provide an employment opportunity.

The self-employed are solely responsible for their choices and financial results. Any losses can have a direct impact on your personal finances and assets. Individual traders are solely responsible for their own profits and cannot share them with family members.

Solo traders can include a wide variety of professions such as construction, IT, painting, architecture and music.

Individual trade companies such as Rio Clothing in Australia are increasingly popular and may specialize in selling bespoke clothing to the women’s market. For more information on this subject, read What it is for and How to open an ABN in Australia.

Company

A business is a more complex organizational structure and involves higher maintenance costs, along with the need to keep relevant authorities informed through timely submission of financial records.

By forming a corporation, shareholders can limit their liabilities. This means that if the company has debt, investors will not be affected and their personal assets will not be compromised. Lenders can only take legal action against the business itself and not against its owners or associates.

In Australia, companies generally range from medium to large in size and may even be growing. These organizations consist of multiple employees and one or more partners.

Trust

Trusts are a complex business structure designed to protect assets for the benefit of their owners. An example is provided below for clarification.

A Trust comprises four main components: Settlor, which puts the trust into effect; Trustee, who manages the trust’s assets; Nominator, who has the authority to appoint or dismiss an administrator; and Beneficiaries, those who benefit from the assets of the trust.

In Australia it is not uncommon to see such a company. These companies are usually family owned or small businesses that bring in a decent income and have weaponry and property. They often rely on these companies to minimize their taxes and protect their assets from potential financial problems.

A Trust is typically established by an individual or entity that has a steady stream of income, like our example of a farmer who owns a small business and earns $500,000 annually, plus his properties generate $100,000 in rent. The farmer can link all of his assets and income to the Trustee for management purposes.

In the Trust structure, with proper planning, beneficiaries can split the taxable amounts, reducing their overall tax burden to a more manageable 10-20%. Without this setting it is possible that they would pay up to 45%.

One of the main advantages of a Trust is the safeguard it can provide for assets. For example, if a farm is in financial difficulty and there are creditors seeking payment, the assets and assets associated with the Trustee cannot be pledged by them. This protection ensures that such properties are not used as collateral for reimbursement.

Final considerations

An Australian business owner should consult an accountant or specialist to ensure they understand and utilize the type of company best suited to their particular situation. To provide more information, this post offers an overview of the most used companies in the country.