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Sydney Doing Business

Sydney – A Business Friendly City

Sydney is one of the most popular cities of Australia. If you are relocating to Sydney and wish to start a business, you would be glad to find it as a business friendly city. A quick glimpse at the following phpects can help you in taking a more rational business decision. 

 

Business in Australia

If you wish to set up a business in Sydney, you will probably need a accountant, company registration agent or solicitors.  Once you have established the objectives of the business, logistic and financial issues, you should receive the many forms necessary to register and set up a business in Australia.

 

Workforce at Sydney

Sydney consists of a cosmopolitan workforce which is said to be highly skilled. The workforce of this city of Australia has people from various countries of the globe, speaking more than hundred languages.

 

Political Situation and Natural Endowments

Australia witnesses stable politics and government. It has vast reserves of natural and agricultural resources and energy is available at economical prices. Education is encouraged in the country. Australia is self sufficient in its coal reserves while its natural gas domestic needs are met with fields of natural gas spread across the country. It is rich in zinc and uranium ore deposits. 

 

Trade

Australia had free trade agreements (FTAs) with countries such as United States, Singapore, Thailand, etc. Talks are being carried out for more such FTAs with other countries like Japan, China, UAE, Malaysia, etc. With FTAs in place, companies dealing with such countries for trade purposes can benefit by setting up their business in Sydney.

 

Legal Framework

Once one has made decisions regarding location and finance of the new business, the next step is to get a registration of your company done. One can take help from solicitors and registration agents for setting up a new company. As compared to a public company, setting up a proprietary unit is easier in Australia. There are certain rules and regulations and formalities that need to be taken care of while establishing a company and doing business in Sydney.

If you have not been able to find a suitable location for your business, you can initially start your business from a rental office. One can visit websites such as www.moveandstay.com that offer complete online guidance to help in finding great apartments and offices on rent. One can obtain important information about the current rates and preferred locations for rental offices from the website too. 

 

 Types of companies

In Sydney, it is usually simpler to set u a proprietary company than it is to set up a public company.  The private company needs very little operating capitol to begin operation.  Officers, including directors and a company secretary must be appointed along with a public officer, who is responsible for taxes.

 

Directors

A proprietary company must have two or more directors.  One of the directors must be a resident of Australia.  For public companies, there must be at least three directors and two of them must be Australian residents.  The directors are not required to be actively involved in management of the company on  a daily basis, but they do take responsibility for the management’s action and its effect on the business.

 

Keeping Records

There are specific laws about the books of accounts for businesses in Australia.  If you have never been in business in Australia before, you should initially seek a professional to help with the books.  The Australian Securities and Investments Commission requires regular reports, initially within one month of the first meeting and then after every meeting.

 

 

Did not answer your question?

If you have further questions contact the Australian Securities and Investments Commission in their national office at:

Level 18
135 King Street
Sydney, NSW 2000
Tel: +61-2 9911-200
Fax: +61-2 9911 2030

or send your inquiries to:

GPO Box 4866
Sydney, NSW 2001
DX 653 Sydney
ASIC has a Business Centre at:

Level 8, City Centre Tower
55 Market Street
GPO Box 9854
Sydney, NSW 2001
Tel: +61-2 9911-2500
Fax: +61-2 9911-2550
Hours: 9 a.m. to 5 p.m.
ASIC also has an Infoline you can e-mail at: infoline@asc.gov.au

 

So, you still want to start a company

If you still want to start a company in Australia, you will need a company secretary who is a resident of Australia.  This person takes charge of statutory duties.  You will also need t members for a public company or at least 2 for a proprietary company.  If you plan a wholly owned subsidiary, there is no minimum requirement regardless as to whether you are public or proprietary.  If the company is public it needs at least 5 share holders and if it is proprietary, there have to be between 2 and 50.

 

Selling Shares

When selling shares, they may be sold for cash or other goods or service, but a report of the details of the sale must be given to the ASIC.  It will require at least 3-4 days establishing the company and you must pay the registration fee to the ASIC.

 

Starting from Scratch

Setup may take as long as two weeks from the initial application.  The cost is about A$750 which does not include the cost of the accountant or solicitor.  To set up a new company you will need a name and other documentation to be turned into the ASIC.  You will receive a Certificate of Incorporation along with a registration number.  Your company is identified by this Australian Company Number.

 

Im in a Hurry

If you are in a hurry to begin business, you may choose to purchase a ready-made company off the shelf from an agent or solicitor.  These companies normally cost $700-$800.  If the name is not suitable or amendments need to be made to the Memorandum and Articles of Association, it could take up to 4 weeks and document changes cost around $150.

 

I want to keep it Simple

Perhaps you simply want to go into business by yourself or with a trusted partner.  The only legal formalities are to notify the government for tax purposes.  If there is no partnership agreement, the state or territories Partnership Act regulates how a partnership should be run. 

 

Stock Market Trading (ASX)

In 1987 six independent stock markets that had been operating in Australia combined to form the Australian Stock Exchange (ASX).  The ASX has grown from an international stock market and is the 11th largest market in the world.  In the Asia/Pacific region, it is the second largest and based on contract value is one of the largest stock markets.

 

Leaving the Floor

Also in 1987, automated trading began when the Stock Exchange Automated Trading System (SEATS) was introduced.  By 1990 all stock trading activities were through SEATS and trading floors were abolished.  CHESS, an electronic clearing and settlement system was introduced in 1994. 

 

ASX becomes a Shareholder-owned Company

While ASX began as a stockbrokers’ mutual organization, it was demutualized in 1996.  This required the Australian parliament’s legislation.  Thus, on October 13, 1998, for the first time ever, Australia had Australia had a demutualized stock market.  The following day ASX was listed on its own market and ASX was now a shareholder-owned company. 

 

Mission Statement of ASX

"To provide, for the benefit of all participants, the most internationally competitive and fair market for financial securities and derivatives so as to enhance Australias position as a regional financial center." 

 

ASX Markets

ASX provides for three principal markets:  equity and index derivatives; debt securities; and equities trading.  ASX also encourages investment in Australia by overseas investors.  Foreign investors account for over 20% of all trading on the Australian equities market.

 

World Connections

ASX has established formal relationships NASDAQ as well as many other nations.  This gives Australian investors the opportunity to make investments around the world by the year 2000.

 

Further Mergers

In July of 2006, for in a world wide first two listed stock exchanges joined through merger. Sydney Futures Exchange merged with ASX.  SEATS had become outdated and were replaced by CLICK XT and the official name of the exchange was changed to ASX Limited.

 

Continued Growth

The 20th anniversary of ASX was celebrated in 2007. In 2009 ASX won an award for “Exchange of the Year” award by Structured Products.  

 

Banking

In Australia, banking is quite affordable for households and small business owners. It is said that water and transport in Australia are more expensive than the everyday banking of Australia. The history of banking of Australia boasts of safe and sound banks. Not even a single case of Australian losing money in his deposit has ever been reported in the last 100 years in Australia. Checks get clear in two working days with electronic transfer system adopted by banks in Australia.

 

Staring a business in Sydney is easy especially when one hires services of experts and professionals. With its growing economy, your business has high chances of flourishing in no time.

 

Contact Information

The Australian Stock Exchange
Exchange Centre
20 Bridge Street
Sydney NSW 2000
Tel: +61-2 9227-0000
Fax: +61-2 9235-0056
Email: info@asx.com.au
Web site: www.asx.com.au

The Australian Financial Services Directory lists corporation information and profiles for listed companies on the ASX.  Companies are listed both by industry and alphabetically.