Question For Aussies: registering a business or company in Oz

[sunrise 0]

Hi,

 

I need to start my own publishing company and it will be far easier for me to register it in Oz than Japan. At this point in time it's not likely that any money will go to this company in Australia. It will probably come to me in yen here in Japan, so for now at least I probably won't need to be declaring income on it in Oz.

 

However, apart from the fact that I've never started a company or business before, I haven't lived in Oz for over 10 years, so I'm wondering if anyone on this board can give me some advice/information on going about this. Or point me in the right direction for finding out more. Especially now since GST has arrived, of which I know very little about.

 

I may be able to get away with just registering a business name, but eventually I'm probably going to need it as a company. I heard from an Aussie living in Tokyo that if you're not an Oz resident (even though I'm a citizen) and you start a company it will get filed as a foreign company and will thus be liable to more and higher taxes and the advice from her accountant was to say you're returning to Oz on your next trip and apply there in person. (She had wanted to start a company to use for investment properties, which of course is a different field than music publishing). I have also considered getting my sister to start the company and then her officially bailing out of it and turning it over to me once it's all registered and up and running.

 

If I went about trying to do it from here, (Japan) who do I contact and what would be the best way to do it? I wasn't planning to get back to Oz until sometime in September, which is still a long way off and I want to get the ball rolling before that. And what do people recommend - starting a company straight off or registering it as a small business name first. Or are there other things I'm not aware of? What kind of costs are involved. To do it here in Japan I would have to pay the 3 million yen just to register a company and I think I might need to have staff or something.... which I certainly don't need at this point and may never need.

 

All input will be appreciated! Thanks.

[zebedee 1]

Good luck, I've heard its a nightmare here in Japan.

[sunrise 0]

Thanks.

Oops, I'd better clarify the last paragraph I wrote - I was referring to trying to register it in Oz while being here in Japan (not physically in Oz)......

not registering it as a Japanese company in Japan.... no thankx....

[snowboard_freak 0]

I really don't have much of an idea about his type of thing sunrise.

 

I think you may run into some problems trying to register a business in Oz from Japan. I don't know that the government will let you. But it may be a different story if your a citizen, i'm not sure.

 

If you are allowed to then i would start by simply registering the name - this is pretty cheap i believe. Then if things really get going make it a company. Taxes vary depending on if you are classifed a sole trader, a partnership or a company. They all have thier pros and cons, but im not sure what they are. I've forgotten. GST is payable quarterly and is quite easy to keep on top of it.

 

I'd be going to someone for some professional advice, it could save you a bit of cash.

 

Sorry, not the best info, but its a start.

[NoFakie 45]

More of a clarification for other people than an answer, but you don't need staff or premises to start a yuugengaisha. Those restrictions only apply if you're looking to sponsor your own visa, which is a different issue. You just need 3 million yen of capital in the bank. You don't "pay" the 3 million, because it's still your money. The registration itself costs upwards of 100,000, and will depend on how much of the paperwork you do yourself.

 

You can do everything in under two weeks if need be. If you can't understand Japanese, there are zeirishi who'll do most of the work for you.

 

If you want what works out as a "free" trip, get the seals you'll need made in Korea. It's a lot cheaper over there.

 

You can get info in English about starting a company in Japan from JETRO. I know several people (translators and designers) who've got their own companies and none of them had any problems with the bureaucratic side. The bank might give you a bit of grief, but that's about all.

[pjem 0]

NoFakie is right. I'm sure it would be less stressful doing it in Australia though.

[sunrise 0]

I didn't realise you didn't pay the yen out. So you just have to show you have the money? And then what? You're not allowed to use it forever more? Interesting.... but I'll still probably go for it from Australia. If I do it here then I may have to join or pay dues to JASRAC, which is another kettle of fish altogether.

 

So how do I get information in Australia? Anyone know a good accountant? Or is there some kind of government information service?

[nzlegend 1]

wheres db? he will know

[damian 0]

Most info can be found from the Business Entry portal . From this site you will be able to apply for an ABN &/or TFN, plus other groovy stuff that helps the pricks take tax from you. How much and who takes tax depends on where/how you are registered. Tax info is available at the above portal. Nonetheless, talk to an accountant. I know a very good one but he has retired and I use his services on a private consultancy basis, so i can't refer you to him.

Before you can apply for the ABN you will need to register the company at Australian Securities & Investment Commission . They should give you an ACN, which is requisit to apply for an ABN, but only in some instances. In the old days before GST, companies had ACN's. After GST they were converted to ABN's. The website will guide you through it all.

 

I have a few entities registered and have complicated JV's between them. In most cases they are not companies, rather supperanuation funds/pension funds which are associated with Trust Deeds etc. The fact that I live outside Australia makes my entities for the most 'non-complying funds'. This means I pay more tax on the entity income and on capital infusions/contributions. I have 0% idea, but I wouln't be suprised if you as company director are residing in Japan then you will have to pay IWT (witholding tax). As an Australian citizen you mau be able to team up with people you trust and avoid these types of non-resident penalties.

 

Finally, be prepared for one fact of life: regardless of whether there is a left or right wing government in power, your efforts to succeed and carve a living for yourself will be punished from start to finish. I swear that government in Australia is driven by the desire to keep people poor and uneducated and welfare dependent.

 

After you have registered you company you can choose from a selection of totally poxy Commemorative Records, viz:

 

[nzlegend 1]

see! told you he would know

[NoFakie 45]

Due to recent changes in the law, you don't need the 3mill (yuugen) or 10mill (kabu) to incorporate in Japan. You just have to reach that level of capitalization within five years.

 

You've still got to get the seals and do the paperwork. If you can read Japanese, any half-decent bookstore should have dozens of books about how to do it.

[indosnm 0]

sunrise, if you just want to register a biz name its pretty easy. Or jut fill in the BLUE tax form ( like a self employed biz in Oz) and if you get big enough you can then change it into a company. But I am not sure if puvblishing co's fit under the blue form.

 

If you register you will definately be considered a foriegn co.

I enquired about registering one of my gigs there but tax was too much cos I am here and tax here is nothing anyway..

[sunrise 0]

Thanks for all that info everyone. It's so helpful for a newbie like me!

 

db - wow, many thanks for such a detailed response. That's exactly the kind of stuff I was hoping to find out about. (and for that wonderfully cheesy document). I'll wade thru those sites next week when I have a little more time. I'll also continue my search for an Oz accountant to talk with. I don't see any money coming through Australian channels, so I assume that means no income in Oz, thus no tax, but I'll check into it. I should be able to get my sister into the deal to help out, though of course she'll have to be careful of it affecting her own tax - or maybe it could even benefit her if it's running at a loss in Oz.... hmmm.... Anyway, thanks again.

 

Indosnm - I haven't filed any tax in Oz since 1992 so I haven't a clue as to the current tax forms! Anyway, once I find an accountant I'll be able to get more info.

 

And for you guys with info on making a company here in Japan, many thanks for that too. NoFakie I don't read Japanese, but what you and everyone else have said definitely makes it worth delving into further.