{"id":2415,"date":"2018-02-22T16:49:23","date_gmt":"2018-02-22T05:49:23","guid":{"rendered":"https:\/\/intas.com.au\/?p=2415"},"modified":"2020-12-11T16:12:09","modified_gmt":"2020-12-11T05:12:09","slug":"setting-up-branch-subsidiary","status":"publish","type":"post","link":"https:\/\/intas.com.au\/setting-up-branch-subsidiary\/","title":{"rendered":"Setting Up Business in Australia: Branch Or Subsidiary?"},"content":{"rendered":"\n
One of the most common questions we get asked from international businesses wanting to establish in Australia is whether they should set up a foreign branch office or an Australian subsidiary company.<\/p>\n\n\n\n
This can be a complex decision and there are many implications to consider.<\/p>\n\n\n\n
There are no clear-cut rules which entity is the best choice \u2013 both setups have their advantages and disadvantages over the other. The decision lies in the specific situation of each business and the intention of the business in Australia.<\/p>\n\n\n\n
Your decision will most likely be based on the most beneficial outcome in terms of taxation, contractual obligations, employment of staff and immigration visas, and from an efficiency and operational viewpoint.<\/p>\n\n\n\n
The key considerations when deciding which is the best structure to set up your business in Australia include:<\/p>\n\n\n\n
Today<\/strong> – How are your existing business structures set up globally? Although we will not attempt to tell you the best setup for your business, as this depends entirely on a case by case basis, it does help to distinguish between a foreign branch or an Australian subsidiary.<\/p>\n\n\n\n Start the conversation with us as to the best option for your business and which solution offers the most beneficial outcome.<\/p>\n\n\n\n
Strategy<\/strong> – Looking at the big picture of your global entity<\/a> and seeing how your expansion in Australia will fit in with this strategy. What are the aims of your business wanting to set up in Australia?
Future<\/strong> – Your plans for the future. What will your global company look like in two years, five years, ten years\u2019 time? Will you be hiring employees?
Taxation<\/strong> – The taxation implications of the different structures and what is the most effective way to structure your business in Australia. There are double taxation treaties available for some global businesses, can you benefit from these?<\/p>\n\n\n\n