Australia company formation is simple and cost-effective. The government cost to complete Australia company formation is A$400, and there are no minimum capital requirements. Furthermore, the World Bank's Doing Business 2008 Survey places Australia as the world's 9th-easiest place to do business.

Australia's economic freedom is noted in the 2008 Index of Economic Freedom by The Heritage Foundation. Entrepreneurs choosing Australia company formation benefit from relaxed Australian trade regulations, including low import and export tariffs to encourage international trade.

To further encourage Australia company formation, the Australian government actively attracts inward investment through Invest Australia. Examples of government incentives for international entrepreneurs include:

i) Research & Development (R&D) tax concessions (see our Tax Planning in Australia page for more details)

ii) Commercial Ready Program – two grant levels are available: a) between A$250,000 and A$5 million to small and medium-sized enterprises embarking on innovation projects of up to three years’ duration or b) grants of A$50,000 to A$250,000 for projects up to 18 months long;

iii) Renewable Energy Development Initiative (REDI) – grants of between A$50,000 and A$5 million are available for R&D projects with high potential to cut industrial emissions, for example solar, wind, geothermal, biomass and water-related projects;

iv) Export Market Development Grants - (EMDG) – available through the Australian Trade Commission, this initiative provides reimbursements of up to 50% on expenses incurred by Australian companies on export promotion. To qualify, the company must a) have an annual income of less than A$30 million b) have spent at least A$15,000 on promotional activities in a financial year. The EMDG scheme is ideal for companies promoting inbound tourism to Australia or the export of intellectual property or knowhow outside Australia;

v) Commercializing Emerging Technologies (COMET) – this program provides grants of A$64,000 to small Australian enterprises with high potential for rapid growth via the production of innovative products, processes and services. In 2007-2008 28 enterprises received COMET approval.

Despite the advantages of Australia company formation outlined above, Australia’s service-based economy remains exposed to i) challenging climatic conditions, including drought (which particularly affects the agricultural sector) ii) the health of Asian economies, especially China, which is a major trading partner for Australia. This is compounded by Australia's notoriously high tax rates. For example, after Australia company formation, companies pay 30% tax on income generated in Australia and internationally. Every company is also required to submit annual audited financial statements and a corporate tax return to the Australian Taxation Office.

Most entrepreneurs opt to live and work in Australia following Australia company formation. Standards of living in Australia are high, and Australian cities rank highly in the 2008 Quality of Living Survey by Mercer Human Resources.