The benefits of a foreign business registering a local company in Australia

Posted on: August 12th, 2023

A USA client asked what are the benefit of a USA company registering a local Australian company.

Registering a local company in Australia can offer several benefits for foreign businesses looking to establish a presence in the country. Here are five advantages:

  1. Market Access and Credibility: Registering a local company demonstrates a commitment to the Australian market, which can enhance your credibility and reputation among local customers, partners, and investors. It also allows you to tap into the Australian market’s potential, giving you better access to customers and clients.
  2. Legal and Regulatory Compliance: Operating as a local company ensures that you comply with Australian business laws and regulations. This can help you avoid legal issues, penalties, and complications that might arise from operating as a foreign entity in the country. Registering a local company ensures that you follow all necessary protocols and meet local requirements.
  3. Tax Benefits and Incentives: Registering a local company can offer various tax benefits and incentives that might not be available to foreign entities. Australia has a competitive tax regime with several tax deductions and credits available to local companies. Additionally, you can take advantage of the country’s network of double taxation agreements to potentially reduce the tax burden on international transactions.
  4. Access to Government Support: Many governments provide support and incentives to local businesses, and Australia is no exception. By registering a local company, you can access various government programs, grants, and initiatives aimed at promoting business growth, innovation, and investment.
  5. Ease of Doing Business: Operating as a local company can streamline business operations by eliminating certain bureaucratic hurdles associated with being a foreign entity. Local companies often have smoother interactions with local banks, suppliers, and customers, making it easier to conduct day-to-day business activities.

It’s important to note that while there are numerous benefits to registering a local company, it also comes with responsibilities and costs. Setting up a local entity involves legal procedures, ongoing compliance requirements, and administrative tasks. Before making a decision, it’s advisable to consult with legal and financial experts who can provide tailored advice based on your specific business goals and circumstances.