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Is Expanding Your Business to Australia a Good Idea?

There is a great deal of debate about whether relocating one’s business to Australia is a wise decision. Here are some detailed insights for you to take your decision!
Expanding Your Business to Australia Given the great cost of living in Australia versus the booming economy, business owners have to think long and hard before leaving their home country and deciding to relocate to Australia. Additionally, should they be deciding to expand their operations, they must be certain that they have the liquidity within their existing business to do so. When trying to decide whether relocating or expanding your business to Australia is a wise move, consider the debate below:

6 Reasons in favor of moving your business to Australia

Finance for Your Business Expansion by means of Loan or Government Grants: Australian government has taken many positive steps to encourage entrepreneurship. They view this as a valuable investment to grow their economy and it, thus far, has worked quite well. Where Australia is unique is that they offer many of these grants to foreign citizens as well, so long as they meet the requisite requirements. When foreign citizens are considering relocating their business to Australia, the government grants are surely a major reason, why it's a wise move to make as a part of  your business strategy. Additionally, there are private lenders which are known to be less selective than banks like Sail Financing. With the help of these grants from government and private lenders it's easy to bring out the vision of expansion to Australia into a reality.
Growing Economy: Australia is not one of those markets that is oversaturated. In fact, Australia has a lot of potential to offer businesses that are both more established and in their early phases. This is particular true in the IT world along with professional Expanding Your Business to Australia services industries. Australia is actively seeking innovative & amazing entrepreneurs to arrive at their shows and grow their economy even further. For business owners who look for fresh challenges and endless opportunities for growth, Australia surely is a wise place to move the business to.

Secure Laws: Australia has a legal system that has strong roots with the United Kingdom. This is highly beneficial for business owners because the legal system is well established and has safeguarding measures to protect both business and individual rights. One particular highlight is the well-established laws surrounding corporate entities that make it quite easy for individuals to protect their private assets from business risk. When looking for Australia’s values, its legal system is one of the best in the world and this directly applies to their business landscape as well.

Protected Financial Institutions: The banks are very well regulated within Australia, which is not the case in many jurisdictions across the globe. The good thing about Australia is that you are able to access your Australian bank accounts from just about anywhere in the world and operate them remotely. This sort of connectivity(while still maintaining security) is a great value that Australia offers for business owners. In terms of bank loans and financing, the financial institutions, that are lenders in Australia, have to have strict regulations and approved licenses. These provisions are designed to protect the population from fraudulent loan sharks Expanding Your Business to Australia with impossible interest rates to repay. The value of doing business in Australia is the reliable financial institutions that will protect your business in all aspects of your day-to-day business demands.

Strong Startup Culture: The startup culture is fast growing and big in Australia. For a business owner that is within their first five years, Australia is a great place to make contacts, get funding, and ultimately, realize the big business goals. Be sure to take advantage of what Australia has to offer because from Australia, you may be able to grow your business to other markets in Oceania and Asia due to Australia’s enormous presence in the region.

High Level of English: Australia’s official language is English, which is among the top commonly used languages in global commerce. It is helpful to have your company in a country that primarily speaks English because you will be able to find employees that can communicate to both your clients and offices across the globe. It is important that you take into account the necessity to have English-speaking staff when you are making your decision about whether Australia is the ideal place to take your company to.

5 Reasons that wouldn't turn out to be in favor of you moving your business to Australia

High Cost of Living: Australia is quite expensive to live in. This also applies to the cost of leasing an office that would be in Australia. If you have a tech company, then you may not need a great deal of office space; however, if you are expanding/starting a logistics company, then you need to calculate quite carefully on how much you would end up spending, should you decide to relocate to Australia. This could end up being an astronomical expense for you that could put a major dent in the profits of your business. Be sure that you can afford the real estate before deciding to move your company to Australia, particularly in cities such as Sydney and Melbourne.

High Cost of Business Insurance: Business insurance is another major expense in Australia. Many foreigners are unaware that they need to obtain this and it comes as another major financial roadblock to get started in Australia. It is important that you hire experts to help you with business insurance pricing and rates, so that you do not end up losing capital where it could have otherwise been saved. Factor this into your startup costs and cost-benefit analysis to see if Australia is fiscally worth it for your business.

Strong Taxation for Foreigners: Australia does have good tax policies for their citizens; however, foreign citizens need to be cautious with double taxation issues, if their home country does not have a treaty with Australia. For example, Australia considers a foreign business taxable in Australia, if they are making income in Australia. It is wise to hire an qaulity accountant in Australia to see where you can potentially save on taxation to avoid unpleasant taxation surprises down the road.

Shortage of Skilled Workers in Certain Industries: Australia does have a very educated workforce; however, they do have a shortage of workers in certain specific industries that may affect finding good hires for your company. Australia offers many foreigners, work visas, in special domains of talents to fill this void, but this is an important factor that an employer should consider before deciding to move the business to Australia.

Expanding Your Business to Australia High Threshold for Investor Visa Eligibility: Australia is famous for its business visas; however, those visas have a very high-income threshold to be met. It's important you assess your company's annual revenues and profits to figure if you qualify for the same. If you do not and you would still like to move to Australia to start your business, then you would have to come on a work visa, grow your company with the startup culture in Australia before transitioning to another more permanent visa within Australia. Having an awareness of the revenue and income thresholds at the onset would certainly help you decide better and know what your options really are.

Final Remarks on the Subject

In a nut-shell, moving your business to Australia is a major decision that you wouldn't want to take light. Failure to take it seriously, would end up in perishing your larger business goals and subject you to common pitfalls. Depending on your economic situation, type of industry and the above mentioned set of points, you will be able to bring out the right opinion about whether Australia is the ideal choice for you. Having said that, Australia really does offer a ripe opportunity for those that qualify, to take advantage of the stable government, financial institutions, investment opportunities, and the English proficiency. Wishing you the best of future for your Business in Australia, should you consider to move there.

Do you know Businesses (or own) that have moved to Australia or are planning to move? Tag them here in comments and we would be glad to read their experience(s).

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 23rd November 2017.

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