Australia has one of the strongest economies, with a US $1.35 trillion in 2020. The country is listed among the wealthiest economies in the world, sitting next to countries like Spain, Switzerland, and Canada, among others.
Business conditions in the county are making improvements despite the brunt of the global pandemic. As such, the National Australian Bank showed a business index in August of +14, recovering from the 14-point July drop. Hence, resilience is the best word to describe the Australian economy.
But to get the assurance of the economic sector, you need to register a business in Australia, which helps reap the rewards and provide the potential for growth. It is always a big step to trade under a company structure; however, it cannot undermine the benefits of such a move.
Limits Your Liabilities When Faced with Adversities
One of the most significant advantages of starting a new business under a company structure is the separation of assets, which helps if the industry suffers from losses or debts. Sole trading or business partnership legally binds you to every aspect of your proprietorship, including capital deficits due to liabilities and diminishing returns. On the other hand, a registered company is legally recognised as a separate entity, and it protects your assets from the business name and any actions enforced within your business structure.
In layman’s terms, any business activity, regardless if it results in a loss, is not attached to any of your assets. Such action also indicates business growth because you can focus on business performance and building your brand.
Minimises Tax Liabilities
Australia is a business-friendly country, advocating corporate tax incentives to every sector. Although such grants depend on how much your business earns, it is one of the benefits when you register a business in Australia.
You are more likely to pay fewer taxes if you register your business under a company structure. It is because the current tax rate of the country for large corporations and small companies is lower than the highest individual tax rate.
Additionally, having a company structure entitles your business to a range of tax deductions and capital incentives to accelerate capital appreciation and growth. Your company also gets deductions for putting money into ad campaigns, repairs and maintenance, and employee training and education.
Emphasises Your Brand’s Authority and Legitimacy
When you register your business, you create a level of authority by presenting the legitimacy of your business. For example, all recognised brands in Australia are registered companies, making it easy for their business to establish their brands.
It is also one aspect of expanding your customer base because of reputation and public perception towards your business. A company is recognised as a separate entity, operating separately from the business owners. Meanwhile, although as a company owner or shareholder, you will still be liable under the ASIC and will be operating under an Australian Company Number.
Being a registered company is essential not just for the legitimacy of your business but also for any dealings you might have in the future. For example, closing a deal with various contractors and other third-party companies would require paperwork indicating your business’s legitimacy. It also means that your contracts will have the registered company name rather than your personal information.