If you are looking to setup a direct selling / MLM business then generally we suggest the following:
We generally recommend registering and trading through a local Australia company because it enables you to establish a local business presence while also helping to stop other businesses from using your business name. Furthermore, if you want to get Therapeutic Goods Registration (TGA) then you will need a local company anyway.
The Australian company will need to have a local Australian director, public officer and a registered office address. Our firm can provide these services while we setup the company and get ready to start trading.
Generally an Australian Direct Selling / MLM company with a foreign shareholder needs to be audited and submit its financial statements to the Australian Securities and Investment Commission (ASIC). However, there are a number of options available within the first three months for the Australian company to elect not to be audited. Applying for audit relief can save business a fortune in audit fees.
No Australian Business Number (ABN) Withholding
If your Independent Salespeople do not have an ABN and the total payment for goods and services is more than $75 (excluding GST) you:
- cannot claim the GST input tax credit for that supply; and
- must withhold 49% of the payment and pay it to us.
However, our firm is able to get an exemption from the 49% withholding tax where Independent Salespeople’s commission is less than $10,000 per year.
Please contact our office for further information.Tags: Accounting, Direct Selling, MLM