Setting Up a Business in NSW - Home - Invest NSW · Initially you will need to consider where you...
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NSW Department of Industry Setting up a business in NSW
Transcript of Setting Up a Business in NSW - Home - Invest NSW · Initially you will need to consider where you...
NSW Department of Industry
Setting up a business in NSW
Credit: Destination NSW
About NSW
New South Wales (NSW) is Australia’s most populous state and largest economy. Australia is the world’s 12th largest economy and NSW supplies one-third of Australia’s gross domestic product. The NSW economy alone is larger than that of Hong Kong, Singapore, and Malaysia.
Sydney, the capital of NSW, is ranked 15th globally for ease of doing business, and is one of the world’s most liveable cities. Sydney is home to more than 600 multinational firms and 43 local and foreign-owned banks, globally recognised universities, world-class transport and infrastructure and a vibrant startup scene.
Regional NSW is also rich in resources, talented labour and successful businesses, generating a third of the NSW economy. Key sectors span agribusiness and food, advanced manufacturing, mining and resources,
defence and aerospace, and professional and financial services.
How we can help
The NSW Government’s network of investment specialists provides assistance and advice to prospective investors.
We can help with tailor-made investment facilitation and information services including:
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delivery of investment programs to support businesses that are:
expanding and developing new market opportunities
looking to set up greenfield operations
investing in venture capital
establishing research partnerships
guidance on setting up a business in NSW
helping potential investors identify and develop commercial opportunities in a specific industry sector or region
site selection and support
comparative investment metrics, data and potential locations
coordination across key government agencies and regulatory bodies
assistance in identifying business-to-business solutions and opportunities
information on relocation and visa requirements
introductions to key industry stakeholders and service providers
advice on accessing grants and other financial incentives.
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Credit: Destination NSW
Starting a business in Australia
There are a number of important considerations when deciding to establish a business in Australia. For non-Australian citizens two important factors are getting the right visa and the legal requirements for establishing a business.
Visas
Australian visas are the responsibility of the Commonwealth Department of Immigration and Border Protection (DIBP). If you are looking to establish a business in Australia the Provisional Business Innovation and Investment visa may be of interest.i Applicants must first be nominated by a state or territory government, such as the NSW Government. More information is available on the Department of Industry website.
You may also be eligible for the Permanent Business Talent visa if you:
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are the owner or part-owner of an overseas business
have net business and personal assets of at least AUD $1.5 million
have an annual business turnover of at least AUD $3 million or have obtained at least AUD $1 million in venture capital funding in Australia to develop a high-value business idea.ii
The DIBP’s website provides an overview of available business visas.iii
NSW Department of Industry’s Trade & Investment team can also provide more information on visa programs including the NSW Business and Skilled Migration Program.iv
Establishing a business
When entering the Australian market investors generally need to decide between establishing a new company, registering as a foreign company or acquiring an existing company.
If you are establishing a new business in Australia, there are a variety of structures available, each with their own legal and tax considerations. The most common types of business structures in Australia are sole trade, company, partnership or trust. The Australian government has excellent online resources outlining these structures.v
International investors may wish to establish a new Australian company or subsidiary that operates as a company. Australian companies are distinct legal entities, and must be registered with the Australian Securities and Investments Commission (ASIC). ASIC provides details on its website for those wishing to establish an Australian company or register as a foreign company.vi
Like other companies, a foreign company may sue and be sued and can hold property in the name of its secretary or other officer. Foreign companies must lodge an application with ASIC, with certified copies of the current certificate of incorporation in its country of origin. A registered office must also be established in Australia, and a local representative appointed.
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Choosing a location for your business
Credit: Destination NSW
The location of your business can be a crucial factor in its success. Getting the location right is an important step in entering the New South Wales market.
When choosing where to locate your business:
1. Decide if you want to buy or lease the premises 2. Select a location
3. Find a premises 4. Organise the lease or purchase
Renting or buying
The first decision you will need to make is whether you will buy the premises or lease it through an agent or landlord.
Buying
There are advantages and disadvantages to buying and owning a commercial property.
Advantages
Benefits of capital growth
Writing down the business by borrowing against your equity
Security
Claiming depreciation or fixtures and fittings on tax
Disadvantages
High fitout and setup costs
Ability to borrow is subject to interest rates
Taking full responsibility for expenses
Potential sale if relocating
The Australian Taxation Office (ATO) has resources detailing tax implications of buying commercial premises.vii
Renting
Before leasing a property there are some important questions to ask before committing:
What is the duration of the lease, and do you have the option to renew it?
What are the arrangements for rental payments?
Are there permits, registrations or other licences which could affect lease negotiations?
Who is responsible for rates, taxes, insurance and other outgoings?
What other fees will apply?
You have the option of selecting a short-term or long-term lease. Short leases are more flexible, but do not offer the security and stability of a long-term agreement.
The ATO provides useful information on the tax considerations of leasing and renting commercial properties.
The NSW Small Business Commissioner (SBC) provides support services for small business operators. The SBC has an advocacy service, and is able to speak with government on the issues that are important to you. The SBC is also a champion for the Easy to Do Business program, making it quick and easy for you to set up your business and obtain the approvals necessary to operate as soon as possible. Contact the SBC at [email protected] or on 1300 795 534 for confidential free assistance.
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Selecting a location
Initially you will need to consider where you will conduct the majority of your business.
In Sydney, there are five districts: Western City (Liverpool and Penrith), Central City (Parramatta), Eastern City (the current CBD and surrounds), North (including North Sydney) and South (Canterbury-Bankstown and Sutherland).
Many larger companies in Sydney have traditionally established themselves in the CBD, North Sydney and Parramatta. However, with the development of the new Western Sydney Airport at Badgery’s Creek, Western Sydney is an increasingly attractive location for businesses.
Each business centre is managed by a different local government council, and speaking to the local council is a great way to learn more about planning and building permits and zoning. Major councils in Sydney include:
North Sydney
Sydney CBD
Parramatta
Source: Greater Sydney Commission
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The City of Sydney, which covers the Sydney CBD, Haymarket, The Rocks, Surry Hills, Waterloo and some of Centennial Park
North Sydney Council, which includes North Sydney, Crows Nest, St Leonards and Kirribilli
City of Parramatta Council, which manages Parramatta, Westmead, Eastwood, Epping and Harris Park
Regional NSW is also home to many vibrant businesses in regional centres, generating a third of the overall NSW economy. The major regions of NSW are:
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Central Coast
Central West and Orana
Far West
Hunter
Illawarra-Shoalhaven
New England and North West
North Coast
Riverina-Murray
South East and Tablelands
There are different local councils within each region. The NSW Regional Development has a network of offices that can provide assistance.
Some councils offer a free pre-submission consultation to provide planning advice for businesses. For example, you may be able to seek advice prior to applying for the relevant development approvals, or support in choosing the best location for your business. It is always a good idea to speak with the planning department of the relevant local council.
If the proposed development would involve multiple council jurisdictions, the NSW Department of Planning and Environment may also be able to provide coordination support.
If you are a small or medium business, Business Connect can help with finding a location in NSW and establishing your operations in NSW. You can speak with an advisor by telephoning 1300 134 359 or email [email protected].
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Finding a premises
Sydney is the business capital of Australia, with commercial real estate offerings to match. Premium quality office space in the Sydney CBD is rented for around $1,000 per square metre on average.x Vacancy rates in Sydney (approximately 5.9%) are lower than the national average, and reflect domestic and international demand for Sydney locations.xi While the rental market can be competitive, there is approximately 285,500 square metres of office space currently under construction or with plans approved.xii
Researching a location
When considering a location, ask:
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Are you able to get a permit to extend, remodel or modify the premises?
Are there future development plans that could affect your site?
Is there adequate transportation for employees and clients?
Is the site in good condition?
Do you need to move in right away or is there some flexibility?
Does the location reflect the image your business is hoping to project?
Local councils are the most important sources of information regarding permits, zoning and approvals, including issues around heritage listing and business zones.
The NSW Department of Planning and Environment’s Portal is a useful tool for researching a potential site.xiii
Tips when choosing a site
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Research - Gather information about the demographic and economic characteristics of the areas you’re interested in, including where similar businesses are located.
Visit the site – It is important to personally visit the site you are interested in to ensure that your expectations from the advertisement are met, and to get a feel for the space and location.
Contact local councils - Find out more about the area, any future or planned development, zoning, rates and business activity in the region.
Consider the current and future needs - Make sure you’ve got an up-to-date marketing plan and that your chosen location suits your business goals and objectives.
Understand key issues during negotiations – Before signing a lease familiarise yourself with the key conditions of a lease, including duration, permitted use, fixtures and fitouts, costs, repairs and maintenance, and terminations.
Seek professional advice – It is strongly recommended that you seek the assistance of legal and financial specialists.
Choosing a site
Sydney is home to many professional commercial real estate companies. These include:
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Colliers International CBRE Century 21
LJ Hooker Commercial Jones Lang LaSalle Knight Frank
Ray White Commercial Raine & Horne Commercial TGC
The NSW Government, through the NSW Department of Industry’s Trade & Investment team, can help you make contact with an agent experienced in dealing with international commercial clients.
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Organising the lease or purchase
Once you have found the perfect location and done your due diligence, it is time to organise the lease or purchase of the property. Before signing a contract, keep in mind the following:
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Set strict cost parameters from the start to avoid overpaying, and time parameters to avoid delays.
How has the floor space been measured? Is the cost fair for what you’re getting?
If renting, be explicit about who is responsible for what (for example utilities and repairs).
Are you allowed to make changes or modifications to the property?
If you’re renting, know your rights. The NSW Government has excellent resources to support new businesses, including those engaging in commercial leases.
Professional advice
At this stage it is crucial to seek the advice of legal and financial professionals. There are many professional services companies in Sydney , such as those listed below. The Trade & Investment team at NSW Department of Industry can help connect you with the right service providers.
Professional services and financial advisory
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BDO Bentleys Deloitte EY Gresham King Hill
KPMG Oliver Wyman Pitcher Partners PwC
Legal services
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Allens Allen & Overy Ashurst Baker McKenzie
Clayton Utz DLA Piper Gilbert + Tobin Herbert Smith
Freehills JWS King & Wood Mallesons Minter Ellison
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Contacts
Credit: Destination NSW
The NSW Government is here to help you. If you need assistance, or have any questions, please contact the Trade & Investment team.
NSW Department of Industry, Trade & Investment Division of Skills and Economic Development T: +61 2 9338 6600 E: [email protected]
Other government support and assistance:
Office of Regional Development Concierge and referral service for companies looking to establish in Regional NSW [email protected]
Research and Development Tax Incentive Refundable tax offsets for eligible company research and development activities ato.gov.au/Business/Research-and-development-tax-incentive/
Payroll Tax Rebate Scheme A$6,000 payroll tax rebates to businesses creating new jobs industry.nsw.gov.au/business-and-industry-in-nsw/assistance-and-support/payroll-tax-rebate-scheme
Jobs for NSW Business grants, loans, loan guarantees and other services to create jobs in Regional NSW 1300 562 679 or +61 2 9338 6948 [email protected]
Business Connect Business advisory services and business skills training [email protected]
Boosting Business Innovation Program For collaboration between NSW research organisations and business communities industry.nsw.gov.au/business-and-industry-in-nsw/innovation-and-research/boosting-business-innovation-program
TechVouchers For research collaboration between NSW small-to-medium enterprises and Boosting Business Innovation Program delivery partners industry.nsw.gov.au/business-and-industry-in-nsw/innovation-and-research/techvouchers
NSW Small Business Grant A$2,000 per full time equivalent position to expanding small businesses hiring new employees 1300 241 869 [email protected]
NSW Small Business Commissioner (SBC) Assistance for small to medium businesses 1300 795 534 or +61 2 8222 4800 [email protected]
Sydney Startup Hub A global innovation centre, led by Jobs for NSW [email protected]
i www.homeaffairs.gov.au/Trav/Visa-1/188-ii www.homeaffairs.gov.au/Trav/Visa-1/132-iii www.homeaffairs.gov.au/about/corporate/information/fact-sheets/27businessiv For more information, see www.industry.nsw.gov.au/live-and-work-in-nsw/visas-and-immigration/visa-and-nominationv www.business.gov.au/info/plan-and-start/start-your-business/business-structurevi www.asic.gov.au/for-business/registering-a-company/steps-to-register-a-company; asic.gov.au/for-business/registering-a-company/steps-to-register-a-company/foreign-companiesvii www.ato.gov.au/General/Property/Property-used-in-running-a-business/Buying-commercial-premises/viii www.ato.gov.au/General/Property/Property-used-in-running-a-business/Leasing-and-renting-commercial-premises/ix www.greater.sydney/x JLL, Q3 2017 Market Overview, Sydney CBD.xi Colliers International, CBD Office Second Half 2017, Research and Forecast Report.xii JLL, Q3 2017 Market Overview, Sydney CBD.xiii www.planningportal.nsw.gov.auxiv www.smallbusiness.nsw.gov.au/solving-problems/retail-tenancy
© State of New South Wales through Department of Industry 2018. The information contained in this publication is based on knowledge and understanding at the time of writing (February 2018). However, because of advances in knowledge, users are reminded of the need to ensure that the information upon which they rely is up to date and to check the currency of the information with the appropriate officer of the Department of Industry or the user’s independent adviser.
PUB18/138NSW Department of Industry | February 2018
