Certain Guidelines On A Branch Office Australia

If youre the chief of a overseas company seeking to set up business within Australia

, there are certain concerns that should be in the lead of your mind. Perhaps one of the most important of these is that the Corporations Act 2001 (Cth) prohibits overseas companies from doing just that. Naturally, there are conditions - as the spreading of international companies carrying out business in Australia attests to. In this case, there are two major exclusions. The first is to include a subsidiary in Australia. Depending on the expected dimensions of your procedures, this might be the way to go, but it can be pricey. The alternative is registering a branch or representative office with the Australian Securities and Investment Commission (ASIC).

But, even before deciding between these entity forms, there are two questions that need to be clarified. 1. Am I a foreign corporation? Any body, whether integrated or not, which is developed in a territory or place outside of Australia is regarded to be a foreign corporation. This is granted a very huge test that should bring about little confusion. 2. Am I carrying out business? The Corporations Act only prohibits the act of carrying out business. Unlike the first test, this is a little more ambiguous and thus confusing. As a rough principle, if your companys functions in Australia are being performed with sufficient system, repetition or continuity they will probably be doing business. It must be noted that there is no necessity that the company be creating, or even seeking, a profit from the activities.

However, an individual deal that was big enough might match the regulatory government bodies you were doing business. Ultimately, there are a number of aspects - none of which are determinative, but are suggestive - to be considered. Included in this are: Whether the activities are usual and repetitive in nature; Are the activities similar to those of other businesses in the same industry; Have the actions been planned, organised, and done in a business-like manner; Are the plans more permanent than provisional; Are the actions commercial, and unable to be identified as a hobby?

The Act, however, acknowledges that corporations may be engaged in Australia without doing a business. If youre anxious as to which group your corporation falls into, the following activities are presumed not to constitute carrying out business: is a party to court proceedings, a claim or a dispute in Australia; conducts internal affairs actions in Australia including directors meetings;

Keeps a banking account; creates evidence of a debt or a charge on property, or secures that debt; susceptible to some conditions, conducts a remote deal (if completed within 31 days); effects a sale through an independent contractor; or invests funds or holds any property.

by: branchofficeaustralia

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