ILN: Establishing A Business Entity: An International Guide

[ESTABLISHING A BUSINESS ENTITY IN AUSTRALIA]

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relevant excise duty, businesses that produce, store or manufacture alcohol, tobacco or petroleum products are required to obtain and maintain an excise licence. Other Regulatory Bodies In addition to the regulatory bodies and agencies described above, individuals and companies that carry on businesses in Australia may also need to interact with (and comply with the relevant regulations enforced, or administered by) the following regulatory bodies:

body within the federal Treasury department. One of the key functions of the FIRB is to assess (and if thought fit, consent to) proposals by foreign persons to acquire interests in Australian land, businesses and companies. It is extremely important that foreign investors seek advice when deciding whether to invest in an existing Australian company or to establish a new business operation in Australia. • IP Australia – IP Australia is the federal government agency responsible for processing applications for the registration of certain registrable intellectual property rights, such as patents, trademarks, and registered designs. IP Australia has the authority to conduct hearings and determine whether to grant or refuse applications in respect of intellectual property rights.

Australian

Prudential

Regulation

Authority (APRA) APRA is an independent statutory authority that was formed to oversee the Australian financial services industry and enforce prudential financial standards. APRA’s regulatory functions include the supervision of banks, insurance companies, building societies, credit unions, and superannuation funds. – • Australian Transaction Reports and Analysis Centre (AUSTRAC) – AUSTRAC is the federal financial intelligence agency that is primarily responsible for investigating and prosecuting money laundering and counter-terrorism financing. • Reserve Bank of Australia (RBA) – The RBA is an independent statutory body that is primarily responsible for performing Australia’s central banking functions. The RBA has a range of functions, including establishing monetary policy (such as setting Australia’s cash rate) and ensuring the stability of Australia’s financial system. • Foreign Investment Review Board (FIRB) – The FIRB is a non-statutory advisory

REQUIREMENTS

FOR

LOCAL

SHAREHOLDING/DIRECTORS Director Requirements Australian private companies must have at least one director who:

is over 18 years of age;

• has not previously been disqualified from acting as a director (for example, as a result of acting as an officer of two or more companies that have gone into liquidation within the past seven years); and • ordinarily resides in Australia. Note the requirement for a director to “ordinarily reside” in Australia is not a question of citizenship, rather it is a question of where that person is usually domiciled. Australian public companies must have at least three directors who satisfy the age and

ILN Corporate Group – Establishing a Business Entity Series

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