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Investors forming a company in Australia can benefit from Australia's excellent corporate governance standards. In proof of this, Australian corporate boards are ranked 2nd most effective in the world for supervising company management. Australia is also ranked positively as the worlds best for managing shareholder value, and for the implementation of ethical practices in companies.

The limited liability company is by far the preferred investment vehicle for entrepeneurs setting up a company in Australia. 2006 saw 1.52 million companies registered in Australia, and the government fee to register is A$400.

There are several cost advantages to setting up a company in Australia. Prime office space in Sydney costs 70% less than London and Tokyo, and 50% less than Hong Kong.

Foreign entrepeneurs setting up a company in Australia can rely on Australia's communications infrastructure, which was ranked 16th in the World Economic Forum's Network Readiness Index 2009-2010, which rates countries on their communications technology and ability to exploit information. Benchmarking IT Industry Competitiveness 2009 displayed Australia's IT sector as the 7th most competitive in the world in terms of overall business environment, IT infrastructure, human capital, legal environment, R&D environment, and support for IT industry development.

Through the Australian Securities and Investments Commission; companies are registered and administered, corporate compliance and disclosure requirements are monitored, and statutory audits by public accountants are regulated. Through ASIC's online register, Australian company details are available for public viewing including shareholders and directors, date of incorporation, share capital and registered address.

International investors and organisations should note that the World Bank ranked Australia as the 9th easiest place to do business in 2010, and Australia is the 8th least corrupt country in the Corruptions Perception Index 2009 by Transparency International. Australia is also positively ranked on the Heritage Organisation's 2010 Index of Economic Freedom, as the 3rd freest economy in the world.

That said, Australia is a high-tax jurisdiction with an array of complicated tax laws. A new company owner can expect to frequently engage with professional services of accountants and tax advisors. An Australian private limited company is required to prepare annual financial statements complying with Australian Financial Accounting Standards.

For more detailed information on the benefits and disadvantages of setting up a company in Australia, purchase our Asia Business Setup book, contact email@healyconsultants.com or call us in Sydney at +61 280 147 568.