nicolaticola

Hi Everyone,

I'm looking for some advice.

I'm English and currently in Australia looking to start a business. I'm here on a working holiday visa, but will be applying for my citizenship by descent in the next few months.

I've reached a stage with my business plans where I need to start a company. Can I start one in Australia without having another person involved?

If I can't, does anyone know what type of UK registered businesses can hold bank accounts? Tax is lower in England so it maybe more beneficial to be registered there...

The company will be doing business world-side, but I would like them money to be paid in AUS$. I intend to continue living here...

I've been told that students can start businesses so i'm relatively hopeful.

Thanks, Nikki

Bermudashorts

Might be better to wait until you have your visa / citizenship situation sorted. I believe you could start the business, but you could only work for it for six months under the terms of your visa.

You cannot just choose a country with a lower tax rate, incorporate your company there and then expect to pay that countries tax! Otherwise I think every company in Australia would incorporate themselves in Bermuda or another tax free country...

nicolaticola

Hi, Thanks for that... I don't really want to delay the company moving forward and certainly not trying to avoid tax!! From my point of view I'd much rather start the company here.

If I can start the business here and then get my citizenship through that might be a good option. I've got a clean record and I'm hoping my application is pretty smooth, but its concerning that they might stop me from working in my own company...

Thanks for the advice...

Bermudashorts

The WHV forbids working for any company for more than six months at a time that would include a business you set up yourself. I don't know how long citizenship applications take, but you just need to bear the timing in mind.

Amazulu

This is not what the WHV is intended for

Just come and do what the vast majority of WHV'ers do - see the country, party and earn a bit of money to pay for it all. You'll have a great time and won't regret it

Geezer123

Many people on the working holiday visa were able to stay. It's not what its you're ment to be but many people do it.

GarryP

I'm not sure you can start a company here on a WHV.

A Pty Ltd requires the director to be at least an ordinary resident. A sole proprietorship needs a tax file number - which I assume you should have. However it's not designed for setting up a company - as others have outlined you get into fun very fast with the 6 month rule.

You should also be aware that it's not as cheap or straight forward to set up a Ltd company here either (red tape central).

Personally, I'd setup a UK company whilst being a UK citizen. Not sure what you'll be doing, but given the 'world-side' reference, I guess it's IT/IP based. Thus if you had UK and (eventually) Aus companies, you can play the same type of games that Google play with tax (until they clamp down on it) where the IP is owned by the UK company and the Aus company pays a 'licence fee' to the UK company for it's use (thus shifting Aus earnings to the UK for tax purposes).

Not quite sure why you haven't got the citizenship by descent already, if you can meet the requirements - it's supposed to only take a month to process. Why would you be here on a WHV and having to deal with that hassle?

Bermudashorts

I cannot think why OP would look to complicate personal tax affairs in that way. I am not convinced it would deliver any benefits at all and as I say, just complicates things.

Agree wholeheartedly. I am baffled as to why OP is going through this unnecessary WHV step.

GarryP

Two things.

First, she can get a UK company set up quite quickly. Australia is much more tortuous.

And second, its not personal tax, its corporate tax, and as a general rule of thumb, the more complex, the more tax loopholes have been engineered into the system by accountants and lawyers.

Bermudashorts

I am wondering what the rush is? Why not just get the citizenship and then get the company set up?

And I know very well that it is corporation tax not personal tax. And companies cannot just incorporate in another country in order to pay that countries tax rate. If it were that easy, every company in the world would be incorporated in Bermuda.

Alan Collett

> An Australian Pty Limited can be set up in an hour or less.

> There is no requirement for the director to be ordinarily resident in Australia. The requirement is for all Pty Limiteds to have at ;east one director with a residential address in Australia. There is no reference to the visa/citizenship status of the director.

Best regards.

Alan Collett

To the OP: to get a bank account open in Australia the entity will need to have an ABN.

ABNs (Australian Business Numbers) are issued by the Australian Taxation Office, and can be progressed once the Pty Limited is formed/Australian branch of your UK company is registered with the company regulator in Australia (ASIC).

Best regards.

GarryP

Minimum officeholders | ASIC - Australian Securities and Investments Commission

McMahon Clarke | What's New

So, it seems as if, even though the act is poorly drafted, the individual who is a director of a Pty need that "their continued presence in Australia is not subject to any time limitation imposed by law" - which would seem to rule out a WHV.

Frankly I don't know why the lawyers who earn the big bucks can't sort out the wording of acts better than this.

Alan Collett

Thanks Garry. I stand corrected on the point about a director needing to be ordinarily resident.

I'd maintain though that one can be ordinarily resident in Australia while holding a temporary residency visa.

The case that is often cited in the ordinary residence area is from the UK:
https://www.gov.uk/government/upload...yresidence.pdf

Best regards.

GarryP

Yeah, it's a bit of mess.

However the quote I gave was from Australian Bankruptcy law, which puts it one up on UK law.

The implication is that in Australian law is you need to be enough of a fixture in Australia that they can grab you by the short and curlies if you do something they don't like.

You'd also have the issue of getting a business banking account in Australia - something they are going to have trouble with if you aren't an official resident.