With a global reputation for “thinking outside the box” and being an OECD member, incorporating a business in Australia can be beneficial both in terms of business efficiency and reputation. Being one of the easiest places to do business worldwide, with a population of over 21 million, Australia is an attractive market in which to undertake company incorporation for a variety of reasons. With significant levels of foreign direct investment (FDI), it is interesting to look into the many incentives that attract entrepreneurs to Australia.
Location
As Asia Pacific proves to be a key region for future business, with two thirds of the global middle class expected to come from Asia within the next few years, Australia is strategically located to take advantage of these prospects. Indeed, Asia has the most dynamic growth potential in the world, and Australia can easily undertake business with dominant nations like China and India, which provide a major source of income. Australia also benefits from various advantages as a result of its time zone, which allows Australian businesses to accommodate to the working days of both European, American and Asian companies. Indeed, the start of the Australian working day comes around the end of the European and US working day, and the start of the major Asian markets working day comes before the end of the Australian working day. These natural time differences give Australia an important business advantage over other countries. Similarly, Australia’s opposing seasons with other areas in the world give it strategic benefits in agricultural and food industries.
Transport
Australia provides an effective and advanced range of transportation options for businesses and people. Sea-freight is both reliable and convenient, as there are regular services between Australia and key business centres across Asia and other international markets. Indeed, over 10 shipping companies provide direct services to China, and as a result, freight services provide competitive rates. Similarly, air freight offers many efficient options to businesses, and minimizes transit time.
Domestically, the road, air and rail transport systems are cost-efficient and dependable. Australia’s domestic air transport services have been rated within the best in the Asia-Pacific region, and general transportation will be further advanced with the government’s investment into a trans-continental railway that is in the process of being built.
Overall, the transport infrastructure from Australia to key nations around the world is an integral and effective system that allows Australian businesses to prosper both nationally and internationally thanks to streamlined and flexible trade services.
Culture
Australia’s history implies the diversity of its people today, with Australian residents originating from over 200 different countries worldwide. Consequently, about 25% of the Australian workers are bilingual, speaking a language other than English. Furthermore, with about 1.5million Australians speaking an Asian language at home (Australian Bureau of Statistics – 2006), Australia’s readiness to take full advantage of Asia’s business opportunities is clear. Entrepreneurs benefit from having access to a multicultural and multilingual workforce, which allows better incorporation with major world markets beyond Australia’s own domestic market.
Beyond having a multicultural and multilingual workforce, Australia’s education system is recognized as being within the top ten in the world, and provides for a highly skilled workforce in many fields such as engineering, finance and IT (IMD World Competitiveness Yearbook). Australians’ commitment to education and innovation is reinforced with Australia holding the 3rd highest human development index (HDI) in the world, an index developed by economist Mahbub ul Haq and based on three elements of life expectancy, knowledge / education and standard of living.
As a whole, the Australian workforce provides a highly effective and competitive source of intelligence for all business operations. Entrepreneurs who incorporate in Australia will have little to complain about in terms of workforce; immigration policies make it relatively easy to hire from overseas and expatriate.
In Australia there is a general pro-business culture, which is supported by many government initiatives and grants offered to businesses. For example, in the aim of developing export markets, there is a 50% reimbursement of all overseas promotion expenses made by small and medium enterprises in Australia. There are also significant benefits given to companies to encourage investment into their research and development departments.
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